The recommendation was made in a review by professor Becky Francis and the government revealed yesterday that it was adopting many of the proposals.

Students will also learn about artificial intelligence and how to spot “fake news” under the proposals to modernise lessons, while also giving children a strong foundation in English, maths and the sciences.

Education secretary Bridget Phillipson said: “It has been over a decade since the national curriculum was updated, and it’s more crucial than ever that young people are equipped to face the challenges of today, so they can seize the exciting opportunities that life has to offer.”

Experts from across the industry have welcomed the addition of mortgages to lesson plans, which many have championed for a long time.

Association of Mortgage Intermediaries chief executive Stephanie Charman says: “Too many leave school unprepared for real-world money decisions, from managing credit and student loans to saving for their first home.

“The mortgage industry has been calling for change and has been doing what it can to fill the gap.

“Many lenders and advice firms have been out in schools helping to build young people’s financial confidence, but this shouldn’t be left to chance.

“Giving young people the tools to understand money is essential for their future and for a financially resilient economy.”

SPF Private Clients chief executive Mark Harris says: “Financial literacy is a life skill that can make all the difference between keeping on top of your finances or finding yourself drowning in debt.

“Teaching children these valuable lessons in the classroom will ensure that nobody slips through the net.”

But he suggests the industry could play a direct role in delivery.

Harris says: “Rather than teachers adding mortgages to their workload, we would encourage the government to invite mortgage brokers into the classroom. 

“Being at the coalface with real-life experience, brokers can better explain how the mortgage market works, how to borrow sensibly and seek independent advice, the importance of having a strong credit file and not overstretching yourself. 

“This will ensure the next generation are much more clued up than their parents.”

Sprive chief executive Jinesh Vohra says: “Teaching children how mortgages work, how compound interest adds up, and how to budget could make a real difference to their future financial wellbeing.

“Around 65% of UK homes are owner-occupied, and roughly half of those still have a mortgage so understanding how borrowing works isn’t a niche skill, it’s essential knowledge for most of the population.

“By helping young people understand the long-term impact of interest rates, repayment terms and the benefits of overpaying, we can empower the next generation to make smarter financial decisions and avoid unnecessary debt later in life.

“Learning these lessons early means more people can look forward to financial freedom, not financial strain, as they get older.”