Industry responds to plans to teach mortgages and budgeting in schools

Children will be taught how to budget and how mortgages work as the government seeks to modernise the national curriculum in England's schools.

The government has announced that financial education will become compulsory across all primary and secondary schools in England from 2028, as part of a wider curriculum reform aimed at improving life skills. 

The move directly responds to growing public concern over financial literacy and supports calls from industry leaders and campaigners for earlier and more practical money education.

Reacting to the news, the mortgage industry supported plans to bolster young people's future financial wellbeing, but argued that brokers can better explain how the mortgage market works and should be invited into the classroom.

Jinesh Vohra, CEO of Sprive, said: “It’s fantastic to see financial literacy being made a core part of the curriculum. Teaching children how mortgages work, how compound interest adds up, and how to budget could make a real difference to their future financial wellbeing.

"Around 65% of UK households are owner-occupied, and roughly half of those still have a mortgage so understanding how borrowing works isn’t a niche skill, it’s essential knowledge for most of the population.

“By helping young people understand the long-term impact of interest rates, repayment terms and the benefits of overpaying, we can empower the next generation to make smarter financial decisions and avoid unnecessary debt later in life. Learning these lessons early means more people can look forward to financial freedom, not financial strain, as they get older.”

Kevin Mountford, personal finance expert and co-founder of Raisin UK, commented: "People are telling us loud and clear that financial education needs to start in schools, and it is encouraging to see the government now taking action. The majority want it, and demand is growing. It is the foundation for resilience against economic shocks and the key to making confident decisions about saving, borrowing, and budgeting.

“The next challenge is ensuring that what is taught is practical and relevant. Giving young people the tools to understand money from an early age will help them build financial confidence that lasts a lifetime."

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Financial literacy is a life skill that can make all the difference between keeping on top of your finances or finding yourself drowning in debt.

“Teaching children these valuable lessons in the classroom will ensure that nobody slips through the net. However, they need to be taught properly in order to have a real impact so we would suggest going a step further – rather than teachers adding mortgages to their workload, we would encourage the government to invite mortgage brokers into the classroom. 

"Being at the coalface with real-life experience, brokers can better explain how the mortgage market works, how to borrow sensibly and seek independent advice, the importance of having a strong credit file and not overstretching yourself. This will ensure the next generation are much more clued up than their parents."

Babek Ismayil, CEO of homebuying platform OneDome, agreed: “Making financial literacy compulsory in schools is a hugely positive and long overdue step. Giving young people a grounding in budgeting, saving, borrowing and managing money will help them make more confident financial decisions throughout their lives.

“It’s encouraging to see mortgages included in the new curriculum, but we’d like to see it go further to cover the full financial realities of homeownership. Buying a property is the biggest financial commitment most people will ever make, and it brings with it a wide range of ongoing costs and responsibilities - from maintenance and insurance to council tax, energy bills and repairs.

“Understanding these realities early on would help young people approach homeownership with their eyes open, making them better prepared to manage not just the purchase of a home, but the long-term costs that come with it.”