Helping young people get money smart
Last week marked Talk Money Week (November 3 to 7), the Money and Pensions Service’s annual initiative encouraging open conversations about financial wellbeing. The theme, “Start the Conversation,” highlighted a critical gap in young people’s preparation for adult financial life—one that research increasingly shows has serious consequences for their transition to independence.
Recent data from Santander reveals that only 26% of young adults aged 18 to 21 received any form of financial education during school. More concerning still, just 13% of those who did said the lessons were applicable to real-life situations. The Money and Pensions Service estimates that around 366,000 young people leave school each year without adequate financial knowledge, with 76% of teachers confirming that most pupils finish education financially unprepared.
The consequences are significant. Research shows that 79% of young adults have never created a budget, 76% have never paid a bill independently, and 77% haven’t established emergency savings. Yet these same young people are already managing substantial financial responsibilities: the average student loan debt stands at £48,470, with additional non-student debt averaging £6,400 among Generation Z. Beyond formal debt, many face precarious employment conditions – 411,000 young people are working on zero-hour contracts, while youth unemployment sits at 14.5%.
Perhaps most concerning is where young people turn for financial guidance. With limited formal education and discomfort around discussing money at home, 31% now rely on social media influencers for financial advice, and 25% specifically use TikTok. This trend coincides with a sharp rise in financial fraud targeting young people: government warnings indicate that 57% of students have encountered scams or lost money to criminals, with average losses of £300.
Our Smart Money Choices programme directly addresses these gaps through evidence-based financial literacy education. The programme builds on research into how young people learn about money in digital contexts and incorporates insights from our work with UNICEF Innocenti on financial technologies and children’s wellbeing. It focuses on the practical skills often missing from traditional education – budgeting with irregular income, understanding tax and National Insurance, recognising financial fraud, and building credit responsibly.
The programme is designed for school leavers entering higher education or employment, as well as UK newcomers learning to navigate the financial system.
To mark Talk Money Week, the University is offering up to 500 free places, sponsored by the British Academy as part of my recent Innovation Fellowship, to the University community.
Staff who would like to support local charities, schools, or their own students in accessing this training are encouraged to get in touch to discuss how these places might be allocated.
As Scotland works toward its goal of providing meaningful financial education to 150,000 additional children by 2030, initiatives like Smart Money Choices demonstrate how universities can contribute to financial capability beyond traditional academic boundaries.
The initiative serves as a timely reminder that preparing young people for financial independence requires more than mathematical ability. It calls for practical knowledge, critical thinking, and the confidence to seek sound financial guidance.
Dr Marcel Lukas is a Senior Lecturer in the University of St Andrews Business School’s Department of Finance and Vice-Dean Executive Education. Contact him to learn more or request a free place.