Pupils will be warned about the dangers of rocketing interest rates

Primary and secondary school pupils will be taught personal finance as part of the Scottish Government's Curriculum for Excellence programme.

The plans come after a poll showed more than half of UK parents believe money management lessons would have left them in a better financial position.

The classes will be introduced to schools across Scotland from next year.

The Association of Investment Companies survey, which was published last week, revealed that 93% of teachers and parents thought pupils should be taught how to manage their money.

Some pupils already receive financial education but this is the first time that guidelines on what skills children should learn have been presented in Scotland.

Numeracy is a key life skill and our children need to be confident and competent in using numbers in practical situations Schools Minister Maureen Watt

Personal finance qualifications have been available to pupils in England, Wales and Northern Ireland since 2005.

Pupils north of the border will be warned about the perils of rocketing interest rates and how to apply their knowledge to business.

They will also be taught about various methods of payment and warned of the benefits and risks of each.

The Scottish Government hope the Curriculum for Excellence programme will bring about a more "holistic" approach to education.

Schools Minister Maureen Watt said: "Numeracy is a key life skill and our children need to be confident and competent in using numbers in practical situations.

Credit squeeze

"Many adults today are having to deal with financial problems - even simply from the excesses of the festive period - and by ensuring all children receive these core messages at school, we want to equip them with the ability to avoid these pitfalls in their financial future."

Ms Watt claimed the recommendations were aimed at helping teachers make education more "relevant, exciting and engaging".

The Conservative Party's children, schools and skills spokeswoman, Liz Smith MSP, highlighted recent developments at the Northern Rock Bank and the high street credit squeeze as examples of the need for a good understanding of personal finance issues.

She said: "It is incumbent upon all those involved in the teaching profession to ensure there are opportunities for young people to learn about personal finance and some of the problems which can arise when they become students or start their own families.