Young Persons’ Money Index 2016: Examining the financial educational landscape for teenagers and young people

1. Context
2. The study
3. Key findings
4. Points to consider

Context

This is an annual survey that began in 2014, when financial education was introduced into the National Curriculum. The 2016 report pays particular attention to: the introduction of new education policies pre- and post-16 level, the Money Advice Service’s new Financial Capability Strategy (2015), and recommendations of the All-Party Parliamentary Group (APPG) on Financial Education for Young People in their report ‘Financial Education in Schools: Two Years On – Job Done?’ (2016).

The study

An online UK-wide survey of 2,036 young people aged 15-18 in full-time education. The sample was weighted to be representative of age, gender, regional make-up and education. The report focuses on:

• The current state of financial education and its delivery in schools and colleges in the 2015/16 academic year;
• Young people’s financial confidence and behaviours, and;
• The relevance of findings to the APPG’s recommendations on improving financial capability.

As well as linking the findings to APPG and MAS initiatives, the survey seeks to better appreciate young people’s attitudes and behaviour.

Key findings

• Financial education: Most students (58 per cent) did not receive any form of financial education – indicating little improvement from previous surveys. Fewer girls (36 per cent) than boys (45 per cent) received financial education, and those aged 17-18 were less likely to than those aged 15-16. Economics, PSHE, Maths and Citizenship are the main subjects for the delivery of financial education, but more students are learning financial education through Maths and Citizenship following its inclusion in their curricula.
• Financial confidence and behaviour: 80 per cent of students name their parents or family as their prime source of financial understanding, with mothers generally seen as “better” with managing household finances than fathers. In areas where financial education is more widespread students are less likely to be reliant on parents for gaining understanding. While half feel they have the knowledge to manage their own money, 61 per cent report money worries. A lack of financial education is leading to unrealistic expectations - most believe they will earn far more than the national average by the age of 30.
• Findings in the context of APPG recommendations: More students are receiving financial education through Maths and Citizenship than previously, and very few rely on banks for financial education. Seven per cent see teachers as a source of financial education and two per cent talk to teachers about money. There are marked differences in the provision of financial education between regions and countries of the UK, and fewer girls than boys receive financial education at school. While a strengthening of the provision of financial education in schools is required, there is however an emerging culture of personal financial understanding among teenagers, and financial education appears to improve teenagers’ confidence and understanding where it is delivered. Overall there has been progress in financial education in schools but there is more to do.

Points to consider

• Methodological limitations: The survey notes that it is a 'snapshot'. This short report gives little specific detail about the methodological approach and while it tracks some changes over the three surveys (with figures) no details are provided about the previous surveys. The assertion that financial education appears to have an impact is based on regional correlations and do not definitively show a cause and effect; the report does call for a longitudinal evaluation of impact.
• Relevance: The survey is clearly related to priorities for financial education established by MAS and particularly the APPG and contains a useful further breakdown of statistics, as well as discussion of the implications of findings in light of those wider priorities.
• Generalisability/transferability: Despite the limitations, the report offers a good overview of provision, views and behaviours that could be the basis for further research. There are useful figures about regional (and gender) disparities in provision of financial education.

Full report

Young Person's Money Index 2016: Examining the financial educational landscape for teenagers and young people - full report