Prime Highlights:
Only 26% of young adults aged 18 to 21 received financial education at school, leaving millions without essential money management skills.
If the results are applied nationwide, around 4 million young adults may graduate without a basic understanding of financial management.
The lack of formal financial education is pushing young adults toward unreliable sources like social media influencers (31%) and TikTok (25%) for financial guidance.
Key Background:
A recent survey conducted by Santander UK highlights the significant gap in financial education for young adults in the UK, revealing that only 26% of 18 to 21-year-olds received financial education during their time in school. This means that millions of young people are entering adulthood without a fundamental understanding of money management. The findings suggest that approximately 4 million individuals in the UK are graduating without the essential skills needed to effectively manage their finances.
William Vereker, chair of Santander UK, emphasized the “significant” concerns raised by the study, particularly regarding the inadequacy of the current school curriculum in preparing young people to plan and manage their financial futures. Vereker warned that this gap is pushing students toward potentially unreliable online resources for financial advice. The study found that 31% of respondents had turned to social media influencers for guidance, and 25% had consulted platforms like TikTok for financial information.
The survey comes a decade after financial education was integrated into the national curriculum for secondary schools in England, though it remains largely optional for academies and free schools. The subject is typically taught in non-core subjects such as citizenship. Meanwhile, Wales introduced financial education to its curriculum in 2022.
The lack of financial knowledge is linked to difficulties in basic numeracy, which can hinder young people’s ability to manage money, secure employment, and maintain mental health. Many young adults, according to the research, lack essential skills such as budgeting, bill payment, and saving for unexpected expenses.
In response, advocates have called on the government to implement policies ensuring comprehensive financial education across all schools. MPs have urged a review of the current math’s curriculum to include more relevant financial topics, particularly at primary and secondary school levels. While the Department for Education asserts that financial education is already part of the curriculum, critics argue that the current provisions are insufficient to prepare students for real-world financial challenges.
