Evidence Submitted by The Royal Society

1. The Royal Society’s Advisory Committee on Mathematics Education (RS ACME) has been
investigating the mathematical competencies that will be needed for citizens and society to thrive
in the future. Evidence gathered for this programme, Mathematical Futures, and published in
September 2023, has confirmed the importance of financial education as part of a proposed ‘new
approach to mathematical and data education’.

2. RS ACME has long held the view that an important outcome of schools and college mathematics
should be the ‘appreciation of the purpose and usefulness of mathematics and willingness to use
it’ (ACME, The Mathematical Needs of Learners, 2011). This usefulness is clear in the context of
personal finance.
3. In his written evidence to the Prime Minister’s Expert Advisory Group on Maths to 18, June 2023,
President of the Royal Society, Sir Adrian Smith, made the following statement in response to the
question ‘What knowledge do young people need to manage their own finances?’

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It is increasingly important to empower young people by strengthening their numeracy skills so that they
understand how to manage their finances, so they can budget, save or, where necessary, challenge false
claims when making purchases, large or small. The risks to individuals who lack knowledge are heightened
by the move away from cash to ‘virtual money’, where quantities are far less tangible.

The need to be numerate is not, however, limited to financial matters. In an age of misinformation, an
informed democratic citizenry needs to be data literate, too, so they are better placed to make informed
decisions around policy issues relevant to their day-to-day decision making.

The charity National Numeracy have identified the essentials required for adult numeracy. These include
many references to personal finance to which we would draw your attention.

To manage their finances, young people need a level of numeracy suited to the complexity of the task, but
also an age-appropriate awareness of how to apply numeracy ‘tools’ to a problem involving money.

Examples of specific knowledge to be acquired by school-leaving age to support effective management of

personal finances would include:
• understanding tax calculations and how the government spends money from
taxation
• understanding discounts and rates of interest when shopping/saving
• understanding inflation
• understanding exchange rates
• knowing what to do with gifted or inherited money, property etc
• understanding risk – eg related to betting/investments
 4. From the Mathematical Futures Programme paper ‘A new approach to mathematics and data
education’, the Society’s view is that is General Quantitative Literacy (GQL) underpins specific
financial education. GQL complements other aspects of mathematical and data education,
namely Foundational and Advanced Mathematics, and Domain-specific Competencies.
RS ACME defines GQL as:
‘…the ability to use and apply mathematical concepts and use digital tools to solve real-world quantitative
problems. It is developed throughout education and is essential for operating effectively in daily life and
work. Confidence and fluency in general arithmetic and proportional reasoning are its foundations, together
with an appreciation of presenting and interpreting data. GQL underpins the ability to take a critical view of
arguments that are based on mathematics and data. Examples of GQL are the ability to calculate the
affordability of a payday loan or mortgage, or the ability to critique quantitative claims made in advertising
or the media.

It is the Society’s view, therefore, that children and young people need to gain the confidence and fluency
to know when and how to apply their quantitative skills to a range of situations they will encounter in the
world beyond school. For younger children, these situations may involve saving up pocket money for a treat
or how to divide up their treat among friends; for older students it may be working out the best deal on a
mobile phone contract or calculating the time to allow for a journey on public transport.

Not all applications of quantitative skills will be finance related. We would not propose emphasising the
financial applications above all other situations where GQL has a problem-solving role.

The ability to know what and how mathematics can be used to solve different problems should be
encouraged and explicitly taught in very many areas of the curriculum – not only in mathematics lessons.
5. In response to specific questions posed by the Inquiry:
• What should we be teaching young people about money? What should financial education include
and are there any aspects missing from the current provision?
See statement above from Sir Adrian Smith.
• Where should financial education sit within the National Curriculum between the ages of 11 and 16? To
what extent does its current position within the curriculum limit the amount of delivery time it receives?
Should financial education form part of a core subject, such as mathematics?

Our proposed new approach, ‘Mathematics and data education’, would provide the tools for financial
literacy, and its relevance would extend well beyond the mathematics classroom.
• What steps should be taken to support teachers and schools in their delivery of financial education?

Changes suggested by ‘A new approach to mathematics and data education’ are long term and recognise
the need to support teachers. The Society has long advocated that teachers should be entitled to 35 hours
of subject specific professional development each year. In our vision, all teachers would take part in
professional development of GQL both within their early training (ITTECF) and ongoing CPD.
• Should the provision of financial education in schools be extended beyond key stages three and four?
Is there scope for it to be embedded more extensively at primary-school level?
Pupils and students at all ages should learn about the usefulness of mathematics and data to help
solve problems in age-appropriate contexts across the curriculum and beyond school.
• The Government has outlined proposals to ensure that all students study some form of maths up until
the age of 18 – should financial education be included in these plans and, if so, how?
Financial education should continue as part of GQL for all students until they leave school or college. Some
students will benefit from Core Maths Qualifications which use mathematical concepts in a range of
authentic real-world contexts. The Royal Society strongly advocates greater take up of these qualifications
and the development of similar qualifications at level 2 (see Summary of the Royal Society’s responses to
the Department for Education’s consultation on reforming post-16 qualifications in England | Royal
Society) .

March 2024