Deliver quality formal financial education from age 5 to 19
The steps government is taking to introduce financial education at primary school, to ensure all state-funded schools teach it to the age of 16 and strengthen guidance for 16–19 study programmes are welcome. However, we need to ensure this delivers quality at all stages and for all ages. Effective training for teachers and educators, alongside the right materials, are essential for this to deliver the necessary impact. Focus needs to be given to support educating the 16-19 age group, given the breadth of topics covered within their study programmes, and the fact that this age group will not have benefitted from formal financial education at the start of their school lives.
Meet young people where they are, with the information they need
Whilst formal education is crucial, reforms coming down the track will not benefit the young people we see today, struggling to understand the financial concepts they need to manage their lives. We call on government to invest in meeting 16–25-year-olds where they already are: on social media. While government-backed sources of information such as MoneyHelper provide excellent resources, young people aren't seeking out government websites - they're learning on TikTok and Instagram. Government should fund and verify credible financial educators (qualified accountants, professional bodies in the accounting and finance sector, FCA-regulated advisors) to create accurate, engaging content on these platforms, with MoneyHelper as the trusted resource for deeper information. This isn't about replacing MoneyHelper – it's about creating pathways from social media to trusted sources.
Tackle disadvantage with the right approach, information and resources
As a charity with a purpose to open up access to careers in finance for all, AAT knows that this cannot be fully delivered unless we embed an understanding of finance for everyone. It is essential that all interventions and approaches to build financial literacy, whether state funded or through the private sector, are designed to address the socioeconomic and gender barriers we know are there.
Develop government policy that incentivises young people to make the right financial choices
We won’t reap the benefits of improved financial literacy if wider policies don’t incentivise young people to save, invest and pursue their entrepreneurial ambitions. Government must develop workable incentives for young people to save and invest, as well as provide a policy foundation for entrepreneurship that others can build on, such as the way AAT does through Informi, a free to use, online platform supporting aspiring entrepreneurs.
“Young people always make the mistake of overspending on unnecessary things. They tend to lavish money and regret their losses later.”
Participant in AAT commissioned YouGov online survey with 16–25-year olds in the UK
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