LNF Cymru Literacy and numeracy for Wales

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Skills for Life: Financial Literacy

Financial literacy is a Pearson Skills for Life unit in which learners describe where money comes from and what it is spent on, separate needs from wants, compare ways of saving, meet a simple investment and its risk, and find out where to get financial help. It is one 10 hour unit that learners combine with others into a Pearson Skills for Life Award, Certificate or Diploma, from Entry 1 to Level 2, internally assessed and graded Pass or Fail. Numeracy sits in needs and wants, savings methods, interest and investment risk, with budgeting calculations suggested in Annexe C. Literacy sits in describing and explaining income, saving and help, researching advice, and role play.

Awarding body
Pearson
Level
Entry Level 1 to Level 2
Guided learning hours
10
First taught
September 2027
Amount of literacy work
Medium
Amount of numeracy work
Medium
Specification
Open the specification
How this unit is assessed
  • Entry Level (Entry 1, Entry 2, Entry 3): One assessment criterion at each of Entry 1, Entry 2 and Entry 3: list, outline or identify forms of income and spending, a place to save money or a saving method (Entry 2 and 3), and where to get financial help. Evidence is from centre devised assignments (Pearson's Authorised Assignment Brief can be used or adapted), internally assessed by the centre and quality assured by Pearson standards verification. Graded Pass or Fail. 10 guided learning hours.
  • Level 1 and Level 2: One assessment criterion at each of Level 1 and Level 2: describe (Level 1) or explain (Level 2) sources of income and spending, methods of saving and investment, and sources of financial help. Evidence is from centre devised assignments, internally assessed by the centre and quality assured by Pearson standards verification. Graded Pass or Fail. 10 guided learning hours.

The literacy and numeracy skills in this qualification

  1. Sorting spending into needs and wants

    Assessed: In coursework (non-examination assessment, NEA)

    Learners list or outline what they spend money on, identify one need and one want from Entry 2, and at Level 1 give reasons why spending is need or want based; Level 2 learners explain at least two types of spending, including saving up for occasional costs. This is required in the essential information for assessment decisions.

    Numeracy: Financial literacy

    Getting pupils ready

    Year 7
    Pupils sort twenty price cards, such as bus fare, school shoes and a game, into needs and wants and total each pile.
    Year 8
    Pupils are given a monthly allowance and a list of costs, choose what to buy, and check that their needs are covered before any wants.
    Year 9
    Pupils keep a record of a family's typical weekly spending from a case study, label each item need or want, and suggest how much could be saved each month.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Assessment criteria, page 59; Essential information for assessment decisions, Entry 2 to Level 2, pages 60 to 61

    “can describe different types of spending, giving reasons for why spending may be 'need'- or 'want'-based”
    Progression step 3

    • I can manage money, compare costs from different retailers and determine what can be bought within a given budget.

    • I can realise that budgeting is important.

    Progression step 4

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

  2. Comparing saving methods and interest

    Assessed: In coursework (non-examination assessment, NEA)

    Learners outline a place to save at Entry 2, identify a saving method at Entry 3, describe two different saving methods and when to use each at Level 1, and explain two forms of saving at Level 2, including that a bank account may pay interest. This is required by the assessment criteria from Entry 2.

    Numeracy: Financial literacy

    Getting pupils ready

    Year 7
    Pupils record how much a character saves each week towards £90 trainers in a table and work out when they can buy them.
    Year 8
    Pupils compare a money jar with a savings account and list the advantages and disadvantages of each.
    Year 9
    Pupils compare two savings accounts with different interest rates and work out how much £200 would earn in each after a year.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Assessment criteria, page 59; Essential information for assessment decisions, Entry 2 to Level 2, pages 60 to 61

    “Learners can describe at least two appropriate savings methods that are different, giving reasons when each method may be used.”
    Progression step 3

    • I can understand the advantages and disadvantages of using bank accounts.

    • I can plan and track money and savings by keeping accurate records.

    Progression step 4

    • I can understand the advantages and disadvantages of using bank accounts, including bank cards.

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

  3. Describing investment and its risk

    Assessed: In coursework (non-examination assessment, NEA)

    Level 1 learners identify one method of investment and give a basic description of its risk, for example that share values can go up or down, and Level 2 learners explain one form of investment such as an ISA. Entry learners do not cover investment. This is required by the Level 1 and Level 2 assessment criteria.

    Numeracy: Conceptual understanding, Financial literacy

    Getting pupils ready

    Year 7
    Pupils play a simple game in which a pretend £10 share goes up or down on the roll of a die, and record the value after five rolls.
    Year 8
    Pupils track the price of a well known company's shares over two weeks, plot it on a line graph and describe how it changed.
    Year 9
    Pupils compare putting £500 in a savings account with buying shares, using example figures, and explain which is riskier and why.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Assessment criteria, Level 1 and Level 2, page 59; Essential information for assessment decisions, Level 1 and Level 2, page 61

    “identify one method of investment and provide a basic description of the risk involved”
    Progression step 3

    • I can explain and express concepts, and find examples (or non-examples).

    Progression step 4

    • I can understand the risks involved in different ways of saving and investing.

  4. Budgeting calculations and comparing costs

    Assessed: Taught, but not assessed

    Annexe C names addition and subtraction, budgeting calculations, savings plans and comparing costs and interest rates as the numeracy links, and the Level 2 guidance gives weekly pocket money figures. No assessment criterion requires a calculation or a budget, so these are suggested only.

    Numeracy: Financial literacy, Calculation

    Getting pupils ready

    Year 7
    Pupils add up the cost of a school trip from a price list and work out the change from £50.
    Year 8
    Pupils compare the price per item of multipacks and single snacks from a supermarket website and decide which is best value.
    Year 9
    Pupils build a monthly budget for a 16 year old with a part time job, totalling income and spending and showing how much can be saved.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Essential information for assessment decisions, Entry 3 and Level 2, pages 60 to 61; Annexe C, page 162

    “Addition/subtraction; budgeting calculations; savings plans; comparing costs and interest rates”
    Progression step 3

    • I can add and subtract totals less than £100 using correct notation, e.g. £28.18 + £33.45.

    • I can make comparisons between prices and understand which is best value for money.

    • I can add and subtract numbers using whole numbers and decimals.

    Progression step 4

    • I can carry out calculations relating to VAT, saving and borrowing.

    • I can use efficient written methods to add and subtract numbers and decimals of any size, including a mixture of large and small numbers with differing numbers of decimal places.

  5. Describing and explaining income and spending

    Assessed: In coursework (non-examination assessment, NEA)

    Learners list, outline or identify sources of income and spending using simple examples at Entry Level, describe at least two sources of income at Level 1, and at Level 2 give detailed explanations of at least three sources of income and where they come from, and of two types of spending. This is required by the assessment criteria.

    Literacy: Planning and organising for different purposes, audiences and context, Vocabulary, spelling, grammar

    Getting pupils ready

    Year 7
    Pupils write three sentences about where young people get money, using the words income and earn.
    Year 8
    Pupils write a paragraph describing three sources of income for a teenager, such as pocket money, gifts and a paper round, and how reliable each is.
    Year 9
    Pupils write an explanation of three sources of income for an adult, including wages and a loan, covering where each comes from and what it is used for.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Assessment criteria, page 59; Essential information for assessment decisions, Entry 1 to Level 2, pages 60 to 61

    “give detailed explanations of at least three sources of income, what they are and where they come from”
    Progression step 3

    • I can write a comprehensive account of a topic, theme or viewpoint.

    • I can use varied, appropriate and precise vocabulary including area of learning and experience/discipline-specific words for different purposes.

    Progression step 4

    • I can use summary, discussion of issues, detailed explanations and logic when covering a topic.

    • I have experienced a range of area of learning and experience/discipline-specific and general academic vocabulary, and can use them in my own communication.

  6. Reading and explaining sources of financial help

    Assessed: In coursework (non-examination assessment, NEA)

    Learners state a place to get financial help from Entry 1, describe two sources and when they are useful after research at Level 1, and at Level 2 explain at least three sources, what help each gives and the benefits of guidance, including the difference between regulated and informal advice. This is required by the assessment criteria.

    Literacy: Reading strategies, Understanding, response and analysis

    Getting pupils ready

    Year 7
    Pupils scan a leaflet about money help for young people and list who they could ask and how to contact them.
    Year 8
    Pupils read the MoneyHelper page on saving and summarise three pieces of advice in their own words.
    Year 9
    Pupils compare advice on saving from a regulated adviser's website and from a social media post, and explain which is more reliable and why.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Assessment criteria, page 59; Essential information for assessment decisions, Entry 1 to Level 2, pages 60 to 62

    “This may include the difference between regulated advice and informal advice from people such as family or teachers.”
    Progression step 3

    • I can use a range of strategies for finding information, e.g. skimming for gist, scanning for detail.

    • I can make use of reference/digital sources to select, summarise and synthesise information, referencing as appropriate.

    Progression step 4

    • I can research a wide range of reference and digital sources to develop a full understanding of a topic or issue.

    • I can evaluate the usefulness and reliability of texts.

  7. Talking about money in role play and discussion

    Assessed: Taught, but not assessed

    The Entry 2 guidance describes learners outlining where to get financial help during a simple role play and working with others to discuss their finances, and Level 2 learners take part in role plays unaided. Role play is named in Annexe C, but the unit has no mandatory evidence requirements, so it is one suggested way to gather evidence rather than a requirement.

    Literacy: Collaborative talk, Questioning, Clarity and vocabulary

    Getting pupils ready

    Year 7
    Pupils role play asking a parent for help to save for a bike, taking turns to ask and answer questions.
    Year 8
    Pupils role play opening a first bank account, with one pupil as the bank worker explaining the account and the other asking questions.
    Year 9
    Pupils role play a young person asking a money adviser about saving for a car, using correct terms such as interest and ISA.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfL 12, Essential information for assessment decisions, Entry 2, page 60; Levels of supervision and support, page 62; Annexe C, page 162

    “outline one place to get financial help or guidance when completing a simple role-play”
    Progression step 3

    • I can contribute to group discussion in different roles, taking responsibility for completing the task well.

    • I can ask and answer questions, building on and developing the ideas of others in group discussions.

    Progression step 4

    • I have experienced speaking with different people in a variety of authentic contexts.

    • I can speak clearly, selecting and adapting my language appropriately for a range of audiences and purposes, conveying meaning effectively to the audience.

Good to know

Links with other qualifications

Income, saving, interest and investment risk link with WJEC GCSE Mathematics and Numeracy and WJEC Foundation Mathematics and Numeracy, which cover the calculations behind them in more depth, and the Pearson 'What matters' mapping is to Mathematics and Numeracy (page 63). WJEC GCSE Business covers sources of finance and risk from a business point of view. Compared with the WJEC Financial literacy unit, which is 20 hours and requires learners to plan, monitor and analyse a budget and work out the cost of borrowing, the Pearson unit is 10 hours, needs no budget or calculation in its criteria, and is mostly describing and explaining, so its numeracy demand is lower. The WJEC Skills Suite unit Business finance shares the saving and investment vocabulary.

Source: Pearson Entry Level 1 to Level 2 Skills for Life Award, Certificate and Diploma Qualifications specification, Issue 1, August 2026, Unit SfL 12: Financial literacy.