Children will be taught all about the basics of budgeting and borrowing from next year. After years of campaigning by the financial education charity pfeg, the Government has agreed to add money management to the curriculum in England.
A new draft curriculum, published by the Education Secretary on Thursday, will see financial education included in both mathematics and citizenship lessons, making financial capability a statutory part of children's education for the first time.
Tracey Bleakley, chief executive of pfeg, said: "This is a huge victory for the campaign for financial education in schools. Financial education is essential in equipping young people with the knowledge, skills and confidence they need to be able to manage their money well."
The proposals, which will come into force in September 2014, look set to give children a great grounding in financial knowledge.
Children who are aged between 11 and 14 will be taught about the functions and uses of money, the importance of personal budgeting, money management and a range of financial products.
At age 14 they will learn about wages, taxes, credit, debt, financial risk and a range of more sophisticated financial products and services.
There are already ad hoc schemes in place, such as the money management lessons run by charity the Debt Advice Foundation for pupils at Southlands High School in Chorley, Lancashire. The charity's education manager Brian Souter said: "To have money management on the curriculum for secondary schools is a huge victory."