Santander has warned that millions of young people still leave school without financial education. 10 years since its introduction to the secondary school curriculum, only one in four young adults (18-21) are leaving school having received financial education.
Young adults are confident in their financial knowledge but 79 per cent have never created a budget, 76 per cent have never paid a bill, and 77 per cent have not set aside funds for unexpected expenses. And only 17 per cent of young adults reported receiving financial guidance from their bank.
William Vereker, Chair of Santander UK, commented: “Young people’s understanding and effective management of money is essential in their own lives, but also for wider society and economic growth. Empowering them with the knowledge and skills to develop a healthy, resilient relationship with money directly impacts the economic stability of the country, by reducing individual debt, instilling investment habits and encouraging entrepreneurship.”
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Mr Vereker said: “Our research raises two significant concerns: firstly, that the current school curriculum does not always equip young people with the knowledge they need to plan and manage their financial futures; and secondly, that this gap is leading young adults to potentially unreliable online resources for advice.
“Banks have a critical opportunity to connect with young people by delivering accessible, engaging financial guidance tailored to their needs and preferred platforms. We know young adults take to social media for news, for inspiration, to shop, to sell so it is imperative that we position ourselves where they are and for what they are asking from us.”
Just 13 per cent of young adults felt the financial lessons they received in school were applicable to their personal finances. Critical topics like debt management, overdrafts, personal loans, and emerging debt types such as “buy now, pay later” (BNPL) products.
Mr Vereker said: “Next year we’ll be launching a financial education programme that meets the needs of young people and helps equip them properly for their financial futures.”