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

Young people from lower socioeconomic backgrounds are disadvantaged in several areas when it comes to financial literacy. This is of concern because financial literacy is a gateway skill – without it, you will be disadvantaged in terms of job and life opportunities. Our survey found that some young people are disadvantaged due to parental background or income, meaning that a section of society is missing out on vital skills.

Young people from C2DE social grades (working class backgrounds) (44%) or who attended a non-selective state school (47%) were significantly less likely to receive any formal or informal financial education at school compared to those from ABC1 social grades (middle class backgrounds) (37%) or who attended an independent school and paid their fees in full (18%). Even when young people from working class backgrounds do receive formal financial education, they’re more likely to report that they didn’t feel the lessons helped them prepare for adult life and they lack a basic understanding of personal finance concepts.

The research also revealed that young women showed less confidence, knowledge and experience with financial concepts and products across a range of different areas compared to young men. If financial education is going to be truly effective, it needs to be accessible and positively impact every young person.

Young people from working class backgrounds are missing out.

Of those who had received formal financial education at school, 65% said that it had not prepared them well for adult life, compared to 45% of young people from middle class backgrounds.
68% expressed confidence in managing their personal finances compared to 76% of young people from middle class backgrounds.
58% have a savings account compared to 72% of young people from middle class backgrounds.
Of the young people currently not saving for retirement, one in eight were not planning to. This proportion rises to one in five of young people from a working-class background.

There is a gender divide with young women missing out.

Of those who had received formal financial education at school, 33% said that it had not prepared them well for adult life, compared to 61% of young men.
67% expressed confidence in managing their personal finances compared to 81% of young men.
47% stated that they were not currently saving for retirement, compared to young men.

Socioeconomic disadvantage

Experience is not uniform across the school system

Schools are not providing enough financial education for students from lower socioeconomic backgrounds

Many do not understand key personal finance concepts

Money confidence is linked to higher socioeconomic backgrounds and schooling

Not everyone has a savings habit

And some are not saving for retirement at all

“It's not that women are being purposefully shut out. I just think the conversations aren't being initiated enough. Traditionally, it was always the man who looked after the money – that's still rooted in our minds."

Gabriella Goddard-Palmer, 22, Management Consultant