The Institute of Financial Services has launched two personal finance qualifications for 14-16 year olds, which will be available to all UK schools and colleges from September 2006.
The Institute believes that the optional qualifications will run alongside GCSE's, aiming to address the poor levels of financial capability in the UK, and equip students with a good understanding of money management to help them make confident and well-informed decisions later in life.
The level one Foundation Certificate in Personal Finance (FCPF) compromises 'Introduction to Money' and 'Money Management' units, while the level two Intermediate Certificate in Personal Finance (ICPF) is made up of 'Personal Financial Encounters' and 'Money Management Solutions' units. The units also cover topics such as currency, loans, overdrafts, wages, interest and savings.
Each unit is assessed by a single 30-minute objective test and at the end of the ICPF, students must complete a synoptic 60-minute objective test.
Our view
This is great news. It will introduce more people to the industry as well as raising basic awareness of finance for all youngsters. It is criminal that a child can leave school and know about such useless things as Boyles law or Pythagorus (there you are, we cannot even remember how to spell it) - but they have no clue how to write a cheque or open a bank account.