70% want mandatory financial education in UK schools
70% of folks in the UK want schools to teach personal financial education. Meanwhile, less than one in 10 young people passed a financial literacy test. Just 23% across all ages passed the quiz, down from 49% in 2024.
Mutual society Shepherds Friendly carried out the research. It surveyed 2,000 people on their knowledge of ISAs, investing, insurance, income protection and general personal finance.
It found that self confidence in finance topics is low. Investing, ISA saving and pension planning were the top three areas of struggle. It doesn’t help, of course, that long-term wage stagnation has left many people living hand-to-mouth.
Men were more likely to pass than women (29% vs 17%), while only 9% of 18- 24 year olds achieved a passing score. Young people were the least confident overall, with 51% saying they’re struggling to manage their finances. Among those 55 and over, 34% passed.
As financial literacy becomes increasingly crucial in navigating modern life, 70% of respondents said that financial education should be a mandatory part of the school curriculum.
You can read the full research here.
Nottingham had the highest pass overall pass rate at 33%, followed by Bristol (30%) and Brighton (29%). Meanwhile, Leeds had the lowest pass rate at just 15%.
Financial education could boost confidence
Young people face the biggest knowledge and confidence gaps
Confidence is also low across key financial topics. Nearly half (48%) said they don’t feel confident investing, 43% aren’t sure which ISA suits their goals, and 39% lack confidence with pension planning.
However, younger generations were consistently found to have the lowest levels of both understanding and confidence across almost every financial topic. Over half (56%) of 18-24 year olds said they don’t understand pension planning, while 55% said they aren’t confident in choosing the right ISA.
This lack of financial confidence appears to be having wider effects on wellbeing. 51% of 25-34 year olds said they struggle to manage their finances amidst rising costs, and almost half (46%) said financial worries have caused them to lose sleep. A further 55% said money concerns have negatively affected their mental health.
The findings suggest that the absence of financial education earlier in life is leaving younger adults ill-equipped to manage their money and plan for the future. Seven in ten (70%) believe personal finance should be part of the school curriculum. And 72% said lessons should focus on practical skills such as how to save and invest.
A lack of financial understanding may also be preventing people from preparing for emergencies or achieving their long-term goals. Around half (54%) of the respondents said they regularly review their financial progress. But just three in 10 (34%) feel confident they’ll reach their financial goals.
Experts warn that without improved access to financial education and advice, many people risk falling further behind in their financial wellbeing.
Derence Lee, chief finance officer at Shepherds Friendly, said:
Our survey showed that many people feel unsure about different areas of personal finance, from investing to insurance. But understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money.
Improving financial literacy can benefit everyone, whether you’re just starting out or already thinking about retirement.
There’s plenty you can do to build your money skills. Even small steps, like exploring online learning tools, using budgeting apps, or reading trusted resources, can make a real difference. For those who feel unsure where to start, speaking to a qualified financial adviser can help turn confusion into clarity.
By improving financial knowledge, we can all make smarter decisions, feel more confident, and build a stronger financial future for ourselves and our families.
Featured image via the Canary
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Investing, ISA saving and pension planning are not understood by most children. Seriously? With most people earning too little to afford any of the three, why do they need to learn? Knowing about something doesn’t mean you can afford it. The problem of low wages, high rents, unaffordable long term housing are the problems not the investments affordable only to the rich.
When you have less than a months savings in your bank, when your families live paycheck to paycheck, the financial literacy test for the rich is pointless.
Much of these needs were covered by the state welfare system, that the government sold them off for profit is again the problem not any lack of knowledge by the poor and vulnerable
Countries like Finland, Australia, and Sweden have integrated financial education into their school curricula, teaching students essential financial skills from a young age integrated into other lessons I would imagine help with the management of finances through out the rest of their life, after all going from school into work you are instantly given funds to do with what you want so why not have a better idea and understanding of what can be done for the future, I would of welcomed knowing what I could of done even though my first pay was given to me in a brown envelope and was real money not just paid into a bank account.
Govts themselves play the part of economic illiterates. How could they teach what they profess to have no idea of? Why would they when their political/financial success depend on there being an economically illiterate population?
Try Googling for ‘money creation in the modern economy’.
It takes you to the Bank of England site, March 2014 Quarterly Bulletin. This stuff’s in plain site.
There’s a video and a PDF.
The video explains the commercial banks create new money when they lend it. That’s right, that mortgage you’re paying compound interest on was created out of nothing (‘ex nihilo’) by the bank granting you the loan. How can they justify that?
The PDF explains what we use for money is Govt. IOUs (I Promise to Pay the Bearer etc).
If you find it difficult to explain how the Govt can repeatedly be suggesting it has no money of its own when what we use for money is the IOUs the Govt itself spends into existence (remember, part of the Govt is itself a bank, the Bank of England), well, now you’re beginning to get some idea of where it is you live & it isn’t anywhere nice.
Govt couldn’t get away with half the stunts it pulls if we had an economically/financially literate population.
So don’t hold your breath waiting for that education.
If you want to learn a little more, try here
https://www.economania.co.uk/various-authors/where-money-comes-from.htm
I can only suggest you learn a bit more about Modern Monetary Theory before commenting on it. It is merely an accounting trick, not a true explanation of capitalism and money. Do you imagine that if only governments could be persuaded to print more fiat currency, they would and we would all magically become richer? Under capitalism, the real wealth created by the working class is the only wealth our society possesses, and most of it is creamed off by the owners of assets, the rich elite. They also own our governments and will act accordingly to prevent any lessening of their access to the wealth we create for them. MMT has nothing to say about that.
See the extensive review of Stephanie Kelton’s ‘The Deficit Myth’ on the World Socialist Web Site under the title ‘Modern Monetary Theory and the crisis of capitalism’.