Over half of school leavers don’t receive a proper financial education

A new government report on financial education has revealed that over half of school leavers finish school without the financial education they need. That’s despite the subject being added to the curriculum more than a decade ago.

What’s going wrong?

The report highlighted a few key gaps in young people’s financial education that contributed to their findings:

• no lessons after 16 – once students leave school, they’re expected to manage money alone, but most haven’t been taught how
• outdated content – the curriculum hasn’t kept up with the digital world, meaning key topics like online scams are often left out
• no accountability – there are no checks to make sure financial education is delivered to a good standard
• a postcode lottery – where you live affects whether you get decent money lessons, meaning some children suffer because of their postcode

As a result, around 53% of young people finish school without the financial skills they need.

It’s not all bad news though. The report also made several recommendations which, if followed, could improve things.

This includes a national online hub with lots of teaching resources, a Financial Education Youth Guarantee promising lessons at every stage of learning, and even a financial education champion at each school.

Why is financial education so important?

As we face a cost-of-living crisis and more and more of us struggle to afford basic bills, a decent financial education is more important than ever.

It can teach people how to budget, avoid debt, and plan for the future so they can reach their financial goals. Without financial education, young people risk falling into financial traps that can take years to escape.

What can parents do to help?

Even if schools aren’t covering everything, parents can make a huge difference. Research shows 90% of kids would go to their parents for money advice, but only 60% of parents feel confident giving it. Here are some practical ways to start:

• talk about money early – kids start forming money habits from as young as 7; now’s a good time to explain where money comes from and why saving matters
• give pocket money – giving pocket money and linking it to chores is a great way to show kids money is earned and to teach them to save for a goal
• teach the basics of borrowing – explain why credit isn’t “free money” and the risks of debt; if you’ve had your own bad experiences, it’s worth sharing what you learned
• set an example – let your children see you budgeting, comparing prices, or paying bills

How can I improve my own financial education as an adult?

If you’re looking to improve your own financial education as an adult, there's lots of support out there. Take a look:

• free personal finance courses available at the Open University
• free personal finance textbooks by Martin Lewis available to download online
• thinkmoney's free budget planner to help you start budgeting once you’ve got the basics down

While many children leave school without the financial education they need, there are resources out there to help parents get up to speed and, in turn, help kids feel more confident about money.