Young adults wish they’d been taught about money

Making big financial decisions can be really daunting, regardless of your age - but young adults in particular feel they’re paying the price for not taught how to manage money.

New research from Shepherds Friendly shows that more than half (51%) of 18 to 24-year-olds struggle to manage their finances.

And significantly, many of these people think it’s partly because they were never educated about financial terms, concepts and products.

In fact, more than four in ten (42%) say their financial problems stem from a lack of financial education.

Would you pass a financial literacy test?

The lack of knowledge among younger people was laid bare in a money literacy test carried out by Shepherds Friendly.

Less than one in ten (9%) 18 to 24-year-olds passed the test, compared with more than a third (34%) of people aged 55 and above, and one in four (24%) overall.

Younger adults were found to have much lower confidence and understanding on nearly all financial topics.

For example, 56% of 18 to 24-year-olds said they don’t understand pension planning, and 55% aren’t confident in choosing the right ISA.

A similar proportion (51%) of 25 to 34-year-olds said they struggle to manage their finances because of rising costs, while 46% said money worries have led to them losing sleep.

Adults want children to be taught about money

Given people’s firsthand experiences, it’s unsurprising that many think something needs to be done to stop the pattern repeating itself.

Seven in ten people polled (70%) said they think personal finance should be taught in schools and that it should be mandatory.

“Understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money,” said Derence Lee of Shepherds Friendly.

“Improving financial literacy can benefit everyone, whether you’re just starting out or already thinking about retirement.”

School curriculum is set to change

The government recently confirmed that financial education will become compulsory for all primary and secondary school pupils in England as part of a major overhaul of the national curriculum.

From September 2028, money matters will be taught as part of compulsory citizenship lessons - alongside other vital life skills such as spotting fake news and understanding climate change.

We’re really happy that ministers have listened to what parents, young people and organisations like Money Wellness have been saying for years.

Our own research shows that many of the people who’ve come to us for help wish they’d been taught about money much earlier.

More than nine in ten (94%) of the people we asked said they 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.

So it’s clear that financial literacy isn’t something that’s nice to have - it’s an essential life skill.