Call for mandatory personal finance lessons in schools

Eighty-nine per cent of 16-to-24-year-olds have revealed they’ve never received schooling around how to better control and manage their finances; with many now calling for ‘mandatory personal finances lessons following mounting issues surrounding personal debt.

The annual young person’s money index, published by money-saving app Student Beans, also found that more than one in three (39%) 16-24-year-olds are currently using credit cards and overdrafts but are unaware of the interest rates associated with them. The average young Brit (aged 16-to-24) has already accumulated almost £2,000 (£1,909) in overdraft and credit card debt, which if left unchecked would see interest pay-back increase if left ignored.

Due to a lack of personal finance education, three-quarters (74%) of young Brits are now worried about their finances, with stress cited as the biggest concern. In light of covid, exactly half have reported that they are both attempting to save more and be more cautious with their money, however, two-in-three (69%) are unsure where to begin/how to start saving due to lack of education.

The research also unveiled that young males are more than twice as likely as females to have debt between the ages of 16-to-24 years old.

The research from over 3,000 young Brits unveiled that they want to learn about where to invest money (72%); how to budget/save money (69%); understanding interest rates (52%); how to borrow money/get a loan safely (45%); how to choose a credit card (36%) and how to choose a bank account (31%).

Other common answers include understanding taxes, credit scores, how to avoid fraud and demystifying financial jargon.