Working with 16-24 year old current and potential apprentices and trainees -instilling financial capability

1. Description of the programme
2. The study
3. Key findings
4. Points to consider

• Description of the programme
• The study
• Key findings
• Points to consider
• Full report

Description of the programme

[This is an extract from the Executive Summary of the evaluation report. Further amendments may be made to this Summary, pending review by the Evidence Hub partner]

West Kent Housing Association (West Kent) aims to build and support strong, cohesive and inclusive communities across Kent by identifying and tackling unmet need in key areas. This research project worked with 16-24 year-old current and prospective apprentices and trainees in Kent, to better understand their financial capability and how this may influence their choices as to whether they take up and/or sustain these employment opportunities. Participants were recruited and divided into three groups; two experimental groups (groups 1 and 2), who each received training, with group 1 receiving additional one to one support; and one control group for comparison (group 3). The training programme ran over a 4 to 6 week period, recruited 155 participants across 5 cohorts, and focused on a range of money matters relevant to young people including savings, managing money day to day, investments, credit cards and debt management.

The study

This is an outcome and process evaluation, exploring three central research questions:

1. What elements of financial capability current and prospective apprentices and trainees believe are influencing their choices as to whether to take up and / or sustain employment opportunities like apprenticeships and trainee/entry roles?
2. To what extent can we show that tailored small group learning and one-to-one support helps this group to improve their financial capability?
3. How does improved financial capability actually influence this group’s choices as to whether to take up and / or sustain employment opportunities like apprenticeships and trainee roles?

The programme sought to achieve the following outcomes for young people aged 16-24 years:

• Greater understanding of money and ability to manage it day to day (Fincap outcomes: Financial attitudes and motivations, Financial Knowledge and Understanding, Managing money well day to day)
• Increased ability to balance current and future financial needs (Fincap outcomes: Preparing for life events, Financial attitudes and motivations, Attitudes and motivations, Managed exposure to risk)
• Increased aspirations and motivation to take up or sustain apprenticeship or trainee employment opportunities (Fincap outcomes: Financial attitudes and motivations)
• Improved understanding of other factors influencing choices being made in relation to financial capability and employment (Fincap Outcomes: Financial attitudes and motivations)

The methodology employed to evaluate this project included questionnaires for both the experimental groups and the control group at certain points of intervention. The first questionnaire was distributed pre-intervention, the second questionnaire was distributed immediately post intervention, and the third questionnaire was distributed 3 months post intervention. Further qualitative data was gathered through pre and post intervention focus groups and ten case study interviews. Given the age range of the participants, we considered both the Money Advice Service Adult Outcomes Framework and the Children and Young People’s Outcome Framework when planning the programme and the evaluation, with a greater focus on the latter.

Key findings

• Research question 1:
  • The findings suggest little evidence that the young people who participated in this research considered that financial capabilities influence their choices regarding taking up or sustaining employment opportunities. However, the young people did recognise that positive and pro-active financial behaviours would positively impact their overall wellbeing longer term.
• Research question 2:
  • The research findings suggest that tailored face to face small group learning has a positive impact on young people’s perceived capacity to improve their financial capabilities across multiple outcome areas, including supporting the young people to develop a greater understanding of money and ability to manage it day to day, and supporting young people to develop and increased ability to balance current and future financial needs.
  • Participants who engaged in the small group training (groups 1 (n=45) and 2 (n=56)) consistently reported increased pro-active behaviours in terms of managing money day to day, as well as managing and preparing for life events (including saving) and confidence in their financial capabilities.
  • Participants who engaged in small group training reported increased confidence in their skills and knowledge to engage in financial management processes and make positive financial decisions.
  • Whilst engagement in financial capabilities training positively influenced the participant’s financial behaviours, ability, mindset and access to support, there was no consistent evidence within the data that the additional provision of one to one support significantly impacted these outcomes. Where one to one support did make a perceived difference for young people (based on case study data), was when young people felt they were experiencing particularly challenging circumstances and the individual support helped them address their individual concerns.
  • Participants reported they sought (or intended to seek) advice from friends and relatives; post training this expanded to include internet and online tools to find out about financial products and compare products. Furthermore, an unexpected finding highlighted how the participants sought to use their new-found knowledge to help and support their friends and family in engaging in positive financial behaviours.
• Research question 3:
  • Based on the findings in this research, we found little evidence that improved financial capability influenced the young people’s choices, in the short term, about whether to take up and/or sustain employment opportunities like apprenticeships and trainee roles.
  • The findings suggest that employment choices for young people are mostly influenced by parents and individuals’ own research. Engagement in the financial capabilities training and/or one to one support did not notably impact these decision-making processes.
  • Whilst the participants had a good awareness of apprenticeships, there were mixed perceptions of apprenticeships. Whilst some of the young people perceived apprenticeships as ‘learning real life experiences’, negative perceptions of apprenticeships presented a perceived barrier for young people pursuing this route than financial capabilities. Given the current government’s attempts to raise the status of apprenticeships, including those to be offered in higher education, there appears more work to be done in understanding and overcoming some of these attitudinal barriers.

Points to consider

• Methodological considerations:
  • There was a drop in the rate of questionnaires completed pre and post intervention. On average 82% of participants returned the first questionnaire, 58% returned the second questionnaire, and 35% of the participants returned the third questionnaire.
  • Majority of recruited participants were aged 16-18 years.
  • Questionnaires are limited in gauging young people’s lived experiences; however semi-structured interviews are time consuming and therefore were limited in quantity in this project.

Full report

Working with 16-24 year old current and potential apprentices and trainees - full report