Finance lessons in schools from 2014
School children will start learning about tax, debt and money management in schools from September 2014.
Compulsory education about personal finance issues has been included in the draft national curriculum for England for the first time.
Topics including wages and financial risk will be taught in citizenship classes for 11 to 16-year-olds.
They will also learn about interest rates and other financial issues in maths lessons.
The change comes after an campaign by money experts and MPs. They argued that children were leaving school ill-equipped to deal with financial problems and debt.
It will be up to schools to decide how long they will spend teaching children about money, but the quality of the instruction will be checked by Ofsted inspectors.
"Financial education is essential in equipping young people with the knowledge, skills and confidence they need to be able to manage their money well," said Tracey Bleakley, chief executive of the Personal Finance Education Group.