The state of financial education in British schools has reached a critical point, with most young people leaving education without the essential money management skills needed for adult life, according to their own teachers.
The Scale of the Problem
This educational gap carries serious long-term consequences, including increased risk of problem debt, reduced social mobility, and poorer mental health outcomes. While the recent announcement that financial education will be added to the primary school curriculum by 2028 represents progress, the delay means hundreds of thousands of children will continue to miss out on vital financial knowledge.
Teachers face significant barriers in addressing this crisis. Many lack the confidence, time, and resources to deliver effective financial lessons. Without clear incentives and measurement systems, financial literacy often becomes deprioritised in an already crowded curriculum.
A Radical Solution for London
In response to this urgent need, charity City Pay It Forward has partnered with City A.M. to launch the ambitious Year Six Dividend campaign. The initiative aims to raise £2 million to provide free, high-quality financial education to every Year 6 student across London's state schools.
The programme targets approximately 65,000 pupils across 1,800 schools with a straightforward but powerful approach. Each participating school receives a £1,000 grant to spend as they see fit, alongside comprehensive support including teacher training, clear instructions, and a complete three-lesson curriculum with detailed lesson plans.
Why Year 6 Matters
Focusing on 11-year-olds represents a strategic intervention point. Children at this age are beginning to form money habits that could last a lifetime, and many can obtain debit cards by age 11. In today's increasingly cashless society where contactless payment limits exceed £100, this represents a crucial window for instilling essential financial capabilities.
The programme will measure its impact through before-and-after surveys, providing real data from actual classrooms about how children's understanding of money develops. This evidence-based approach offers the unique opportunity to gather scalable data directly from the source.
By intervening at this pivotal stage, the initiative aims to establish foundations in saving, budgeting, risk understanding, and scam avoidance before adolescent habits potentially lead to preventable debt or missed opportunities.
Broader Benefits and Future Vision
The benefits extend beyond individual children to society as a whole. Equipping young people with financial resilience can help reduce inequality, break cycles of debt, and create pathways for social mobility. While beginning in London, the programme's design allows for potential scaling across the UK once proven effective.
For London's financial institutions and businesses, supporting this campaign represents more than philanthropy. It demonstrates responsibility and strategic foresight in bridging the gap between boardroom and classroom. Investing in the next generation as savvy savers, investors, and employees helps build future consumer bases and talent pools.
In an era dominated by digital wallets, sophisticated scams, influencer-driven spending, and cost-of-living pressures, treating financial education as an optional extra is no longer viable. The campaign presents an opportunity for collective action using the City's resources, expertise, and social licence to drive meaningful change.
