5 Reasons Financial Education Should Be Taught in December

This festive season isn’t just about giving gifts – it’s a prime opportunity to help children learn essential money management skills. From decision-making to understanding emotions tied to spending, December offers unique teaching moments that resonate long after the holidays.

December is a time for celebration and community, but for many families, it also brings heightened financial pressures. With gift exchanges, parties, and seasonal fundraising, the financial strain on parents and schools is particularly evident. While these challenges can feel overwhelming, they also present an invaluable opportunity to teach children essential financial skills. Here are five reasons why December is the perfect time to introduce financial education:

1. The Holiday Season Highlights Financial Pressures

A significant body of research underscores the financial pressures that arise during the holidays. According to a report by the Money and Pensions Service, 46% of parents report feeling pressured to overspend during the holidays to meet social expectations.

The IPA's annual Christmas report revealed that British consumers expect to spend an average of £593.90 on holiday-related activities and purchases. Most of this budget goes toward gifts (55%), followed by food and drink (18%), while decorations and travel account for smaller portions of the budget​.

Reports and research suggest that many people, especially those with lower financial literacy, struggle with managing their finances during periods of high spending.

This stress, often invisible to children, can be felt in their everyday lives, from overhearing discussions about bills to noticing peers with extravagant gifts. Teaching children how to budget, prioritise needs over wants, and understand the true meaning of generosity can help them navigate these challenges with empathy and wisdom.

2. Financial Education Enhances the Curriculum

Primary schools are already at the heart of shaping children’s values and development. Financial education supports these values by providing essential life skills that can be incorporated into subjects like Maths, PSHE, and even into creative subjects like Art and Drama. For example, schools can use festive events like nativity plays or fairs to encourage critical thinking about choices and their impact, values, and teamwork, fostering a deeper understanding of money's role in decision-making and personal responsibility. This makes financial education not just an add-on but an enriching part of children’s overall learning.

3. Teaching Children to Manage Holiday Spending

The holiday season is an ideal time to introduce practical lessons about managing money. Festive spending is projected to hit a record £88.29 billion this year. For children, learning about budgeting for gifts or school fundraisers teaches valuable lessons about setting limits and being thoughtful with money. These lessons also provide an opportunity to talk about the emotional impact of spending, helping children understand the connection between money and emotional wellbeing.

4. A Gift That Lasts Beyond the Holidays

Financial education is a lifelong gift. The skills children learn now can help them make informed choices and avoid harmful financial behaviours in the future. According to research from Cambridge University, children start to form their money spending habits before 8 years of age. By teaching children how to handle money responsibly during the festive season, we’re setting them up for success long after the holidays are over.

5. Empowering Families and Schools to Tackle Financial Inequality

Financial education can help reduce the disparities that exist between different socioeconomic groups. Research shows that children from lower-income households often have less access to financial education. Initiatives like the LifeSavers programme are specifically designed to bridge this gap by providing schools with free training, resources, and ongoing support to integrate financial education into their curriculum as well as its specialist Alternative Provision resources. This ensures that all children, regardless of their background, can access the tools they need to navigate their financial futures with confidence.

The Time for Action is Now

This year, let's turn the festive period into a teaching moment that will give students vital life skills. By introducing financial education in schools and at home, we can help children develop the skills they need to navigate the world of money.

At Just Finance Foundation, we believe that financial education should be part of every child's learning journey. That’s why we’ve created the LifeSavers programme, which equips schools with free resources to teach children about budgeting, saving, and spending wisely. Join us in ensuring that every child has the opportunity to develop financial confidence—starting this December.

To find out more about LifeSavers and how it can support your school, visit our LifeSavers page.