Young people happy to talk about money, but lack financial confidence

Young adults are more likely to feel comfortable talking about money, but many aren’t confident managing their own finances.

According to the Investment Association, 42% of Gen-Z people and 37% of millennials are happy to discuss money at the dinner table.

That compares with just 23% of Gen-X people and 21% of baby boomers.

However, figures showed that young adults are less sure of themselves when it comes to making financial decisions.

Nearly one in three (31%) Gen-Z people and a similar proportion (28%) of millennials admitted they aren’t confident managing their current financial situation.

Better financial education needed

Responding to the findings, the Investment Association said more needs to be done to build knowledge and financial resilience from a young age, such as offering more financial education in secondary schools.

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

But this means academies and free schools can opt out, 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.

“Too many young people are growing up without the knowledge or confidence to make financial choices that align with their personal circumstances, values and aspirations,” said Sarah Wallace, director of the Just Finance Foundation.

“And that starts with the fact that money is still a taboo subject in our society.” 

“We need to support schools, communities and the financial services sector to help prioritise financial education, build trust and ensure every young person has access to this vital learning.” 

Could financial education help people avoid falling into debt?

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’ve long argued that financial education in schools needs to improve, as it can help people manage their money, make informed decisions and plan for a secure future. 

Having a greater 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.