A report by AAT and Grace Hardy

Money matters

Building a financially confident generation

At AAT, our focus is on opening up access to finance careers for everyone; financial literacy is a key stepping stone towards that and an issue we care deeply about. We’ve therefore commissioned new research to better understand young people’s experience of financial education in school, their experience with and understanding of financial concepts and tools, what guidance they need in this important area, and where they look for it.

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The following sections of this report set out the findings of our research in more detail:

Introduction: a generation hungry for financial knowledge but lacking in key money skills

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What’s wrong with financial education in schools?

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What experience do young people have with practical money skills?

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How confident and capable are young people when it comes to financial concepts?

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Young women and young people from working class backgrounds are missing out on money skills

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Young people want to learn more about money and finance

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Our recommendations

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Our findings at a glance

What does financial literacy look like for 16–25-year-olds?

Less than half received financial education at school

Over a quarter don’t have a debit card

Almost half are not saving for later life

Only half understand how interest is applied to credit card balances

3 in 5 reported struggling with a financial difficulty

“I speak to thousands of young people every week on social media and the message is clear: they’re desperate for straightforward, trustworthy money advice, but the system has let them down."

Grace Hardy MAAT, speaking on her experience campaigning for better financial literacy

Our recommendations at a glance

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1.

Deliver quality formal financial education from age 5 to 19 with the right support for those delivering

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2.

Target the socioeconomic and gender barriers in all forms of education, support and advice

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3.

Ensure government policy incentivises young people to make the right financial choices and follow their entrepreneurial ambitions

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4.

Meet young people where they are with the information they need

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Commenting on the research, Sarah Beale, AAT CEO said:

“Financial skills shouldn’t be a privilege – they should be part of everyday life for everyone. There’s a clear knowledge gap, but young people are hungry to fill it. The question is how we address that, so it benefits everyone and leaves no one behind, whatever their background or circumstances. To do that we need high-quality teaching that is properly funded and supported in schools, trustworthy information reaching young people on the platforms they use, targeted action on the socioeconomic and gender disadvantages that hit hardest, and policies that encourage saving, investing and entrepreneurial ambition rather than blocking it. That’s how we give this generation the support they truly need.”

Sarah Beale, CEO, AAT

Methodology

AAT commissioned YouGov to run an online survey with 16–25-year-olds in the UK...

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Any questions?

If you’d like to know more about AAT and our qualifications, please get in tocuh with us.

Call us on +44 (0) 20 3734 2468. Lines are open 09.00–17.00 (UK time), Monday to Friday

Emails us at aat@aat.org.uk or visit aat.org.uk

Next section: Introduction

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