Britain’s Financial Literacy Crisis
Millions of young people are leaving school without the basic money skills they need to thrive
The Problem Is Clear
Despite Being on the Curriculum, Financial Education Isn’t Reaching Students
Financial education became part of the secondary school curriculum in England in 2014. Yet a decade later, only one in four young adults report receiving any financial education at school. That’s approximately 4 million young people left without fundamental money management skills.
- Academies and free schools (educating over half of UK students) aren’t required to follow the national curriculum for financial education
- Implementation is inconsistent across schools
- Teachers lack confidence, training, and resources to deliver effective financial education
- Only 1% of UK teachers have received financial education training
Young People Are Turning to Unreliable Sources
In the absence of structured financial education, young people are increasingly relying on social media for financial guidance. Nearly a third (31%) look to social media influencers for advice, with 25% relying on TikTok for financial information.
Financial misinformation is rife online, buy-now-pay-later schemes are commonplace, and students face decisions at 18 that could leave them paying off tens of thousands of pounds of debt for most of their lives—all without proper financial education to guide them.
The Cycle of Financial Illiteracy Continues
Whilst 51% of young adults turn to family for financial advice, only 47% of children in the UK are receiving meaningful financial education. This means many parents don’t feel equipped to provide comprehensive financial guidance themselves, perpetuating a cycle of financial illiteracy across generations.
Socio-economic inequalities in financial understanding emerge as early as age 11, making financial literacy a matter of social mobility and equal opportunity.
“Financial education should not be a luxury but a necessity. That so many children are leaving school without these basic life skills should shame us all.”
— MPs debating financial literacy in the House of Commons, February 2024
The Real-World Impact
Personal Consequences
Without good financial understanding, people are more likely to fall into debt, develop gambling problems, and fall prey to scams and financial exploitation. Financial illiteracy is linked to poorer physical and mental health outcomes.
Social Mobility Barrier
Financial illiteracy limits opportunities and poses a significant threat to social mobility. It perpetuates a cycle where prudent financial management becomes a “middle-class secret,” further entrenching economic disadvantage.
National Economic Impact
24% of UK adults have low confidence in managing their money. The UK ranks 15th out of 29 countries for adult financial literacy—despite having a world-leading financial services sector.
We Can Change This
Financial education at a young age has proven impacts on life chances and poverty reduction. It’s popular with parents and teachers. The time to act is now—before another generation leaves school unprepared for the financial realities of adult life.
91% of Britons say they wish they’d learnt more about money and finance in school.