Children as young as seven are set to learn about managing a bank account and budgeting under new government plans.

Under a new personal, social, health and economic (PSHE) curriculum which becomes compulsory next year, all pupils in England, aged five to 16 will be given financial literacy lessons.

Between the age of five and seven, pupils could be taught to identify different coins and notes, and how to save money.

From seven to 11, youngsters could learn about managing bank and savings accounts and how to budget.

In secondary schools, from the age of 11 to 14, pupils could be given lessons on credit cards, mortgages and loans, or about managing household finances, such as bills.

And 14 to 16-year-olds could be taught about debt and how money problems can have an effect of people.

Schools secretary Ed Balls said it was important that children learn about money mat-ters.

He said: "It's vital that all young people leave school with a basic understanding of how to manage their money sensibly. So it's really important that we teach our children about money matters like pensions, responsible saving and effective money management."

He added: "We need to make sure all young people have the information they need to prepare them for the complexities of today's modern world so that they can give security to their families and prepare for the future."

Martin Lewis, creator of MoneySavingExpert.com, said: "Like many nations we educate our youth into debt when they go to university, but the disgrace is we've never educated them about debt - no surprise that over the last 20 years we've dug a hell hole of personal borrowing problems.

"This is a welcome first step, we must ensure no child leaves school without knowing that a company's job is to make money and sell to them; how debt works and when and how to do it safely, and that we live in a competitive economy and by knowing how your cash works you can lead a better life."

These proposals, outlining which topics schools could cover, will be consulted on later this year.

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