1 in 3 young people ‘worry about money every day’

Many young adults regularly worry about money, but only a small proportion want to improve their financial knowledge.

According to research by Santander:

• more than one in three (35%) 18 to 21-year-olds worry about their finances every day
• over nine in ten (93%) young adults worry about money generally

When asked why, nearly a quarter (22%) said they’re concerned about falling into debt.

But the same survey showed that only one in five (20%) young adults are interested in learning about debt management.

Financial education must be taught at school

Since 2014, financial education has been on the national curriculum for local authority-run secondary schools, with the subject covered in citizenship lessons.

But academies and free schools can opt out of teaching it, and financial education isn’t on the curriculum in primary schools at all.

As a result, many young people are growing into adults lacking key financial knowledge.

For example, just one in five (21%) remembered learning about credit cards.

That’s despite more than a quarter saying they’d like to know more about them.

Similarly, the survey found that less than one in three (30%) young people learned about student loans at school, and just 12% recalled learning about personal loans.

“It is increasingly important that young people are aware of the risks associated with borrowing money,” Santander said.

“Yet the school curriculum - as it stands - falls short of these important topics.”

Mark Weston, director of financial support at Santander UK, added that people need to know the “appropriate risk and reward trade-off” before deciding to borrow money, so they can avoid problems in the future.

“It’s vital that we give young people the tools needed to make well-informed decisions around their finances,” he said.

Most people who’ve asked for debt advice weren’t taught about money

We recently surveyed people we’ve supported with debt advice and found that 94% didn’t get any financial education when they were younger.

But notably, 80% said they thought it would have made a difference to their situation.

And when asked what particular topics would have helped them manage their money better, 77% said budgeting.

This was followed by understanding what credit and debt is (68%) and how to save money and why it's important (62%).

We want to see better financial education in schools, as it helps people manage their money, make informed decisions and plan for a secure future. 

Having a better understanding of money-related concepts, such as budgeting, saving and debt management, also helps people make better choices and achieve their financial goals. 

And at a time when money-related products seem to be getting more varied and complex, financial literacy is becoming an increasingly crucial skill to possess.