How reading can boost your money skills

Reading has countless educational benefits for kids, such as widening their vocabulary, broadening their knowledge and helping them see the world through other people’s eyes.

But did you know it can also help you manage your money better?

New research from Experian shows that children with lower literacy levels are more likely to have lower credit scores as adults.

In fact, areas with lower literacy rates tend to have credit scores between 6% and 12% below the national average.

It’s a stark reminder that reading isn’t just about books.

It helps you understand and process information, weigh up choices and feel more confident making decisions.

And that can be essential when it comes to managing your finances.

“People often think of literacy and financial wellbeing as separate issues, but they are closely connected,” said John Webb from Experian.

“If children are supported to build strong reading skills early on, they are better placed to understand the world around them, make informed decisions and feel confident managing money later in life.”

Reading for fun can boost your income

Experian’s findings back up recent figures from the government showing that reading can help boost a person’s earning potential.

In fact, official data shows that children who are proficient in reading and writing in primary school earn £65,000 more over their lifetime.

That’s partly why the Department for Education has joined forces with the National Literacy Trust to make 2026 a National Year of Reading - a campaign to promote the benefits of diving into a good book.

“Reading holds the keys to so much of children’s education,” said education secretary Bridget Phillipson.

“So the decline in reading for pleasure among young people should sound alarm bells loud and clear.   

“It’s time for all of us to play our part, put our phones down and pick up a book.”

Reading gets royal seal of approval

The Queen is also doing her bit to get more of us reading, setting up The Queen’s Reading Room charity to promote its advantages and benefits.

Speaking to authors at a recent event, Queen Camilla said it’s her “lifelong conviction that books make life better".

“You allow us to experience life through another's eyes,” she said.

“You encourage us, you make us laugh, you make us cry, you take us on magical journeys and you create a community of book lovers that transcends almost any barrier."

Government aims to improve access to books

Books cost money - and that can exclude low-income families from the joys of reading.

But library provision is an issue that disproportionately affects them too.

At the moment, around one in seven primary schools don’t have a library - and that figure goes up to one in four in disadvantaged areas.

That seriously limits access to books for families on low incomes - and that can, in turn, affect their life chances and opportunities.

So the government is working to tackle this problem by ensuring every state primary school has a library by the end of this parliament.

Fewer children are reading for pleasure

Another issue is that so many children are glued to their phones.

Despite the benefits of reading, the number of children choosing to pick up a book in their free time is falling.

According to the National Literacy Trust, less than a third of eight to 18-year-olds (32.7%) said they enjoyed reading in their spare time in 2025.

That’s 36% lower than it was in 2005.

And figures show the drop has been particularly sharp among primary-aged children and boys aged 11 to 16.

What can I do to get my child reading?

If you want to instil a love of reading into your child, then there are some practical steps you can take.

Sign up for your local library

Reading shouldn’t just be an activity limited to those who can afford it. 

So become a member of your local library.

It’s free to join, so you can give your children access to a constant supply of books without have to spend any money. 

Start small

Don’t make reading feel like a burden or something that takes over their free time.

Instead, encourage short, regular bursts, perhaps ten to 15 minutes a day, so it gradually becomes an easy habit, rather than something they avoid.

Let children follow interests

Don’t dictate what they read. 

If you let them be drawn to things they’re actually interested in, they’ll be more likely to actually enjoy reading.

So if they prefer reading a non-fiction book about a niche hobby, rather than a classic, 800-page hardback novel, it’s still worthwhile.

Set a good example

Let your child see you reading too.

Whether it’s a book, a magazine or a newspaper, it shows that reading is something to enjoy, not a chore.

Link reading to real life

Encourage your children read things like recipes, instructions, menus and even road signs and roadmaps. 

It’ll show them that reading is an activity that’s genuinely useful in everyday life.

Let them read something else if they’re not enjoying a book

If you’re in the middle of a TV series and you’re not enjoying it, you don’t think twice about giving up after a few episodes.

The same should apply to books.

There’s no shame in not finishing something that you’re not enjoying.

So if a book isn’t grabbing your child’s attention, it’s okay to switch.

If the goal is to build a love of reading, you won’t do that by forcing them to endure something they don’t like.

Why financial education matters too

Reading is an important first step to helping children thrive and make sense of the world around them.

But when it comes to money, there’s another important piece of the puzzle - knowing how finances actually work.

The government has confirmed that financial education will become compulsory for all primary and secondary school pupils in England.

So from September 2028, money matters will be taught as part of compulsory citizenship lessons.

Hopefully, this will make a real difference to the life chances of young people, as our own research shows most of the people we support would’ve found financial education valuable.

More than nine in ten (94%) told us they didn’t get any financial education when they were younger.

But notably, 80% said they think it would have made a difference to their situation, especially if they’d been taught about things like budgeting, how to save money and understanding credit and debt.

These aren’t just numbers. 

They’re real people who feel their lives could have turned out differently if they’d been showed how money works.

Education really matters - and reading is where it all starts.