Research Library
Young Persons’ Money Index 2016: Examining the financial educational landscape for teenagers and young people
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Context
The Young Persons' Money Index is an annual survey that began in 2014, when financial education was introduced into the National Curriculum. The 2016 report pays attention particularly to:
- the introduction of new education policies at pre- and post-16 levels;
- the Money Advice Service (MAS)'s new financial capability strategy for the UK (2015); and,
- the 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).
As well as linking the findings to APPG and MAS initiatives, the survey also seeks to better appreciate young people's attitudes and behaviour.
The study
The study draws 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 distribution and education. The Index is broken down into three key sections:
- 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.
- The relevance of findings to the APPG’s recommendations on improving financial capability.
Key findings
Most students (58%) did not receive any form of financial education – indicating little change from previous surveys.
Fewer girls (36%) than boys (45%) received financial education, and those aged 17-18 were less likely to receive financial education than those aged 15-16.
Economics, PSHE (personal, social and health education), maths and citizenship are the main subjects for the delivery of financial education.
Up to 80% 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% 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.
More students are receiving financial education through maths and citizenship than in previous years, and very few rely on banks for financial education.
Only 7% see teachers as a source of financial education and 2% talk to teachers about money.
There are marked differences in the provision of financial education between regions and countries of the UK.
Although a strengthening of the provision of financial education in schools is required, there is an emerging culture of personal financial understanding among teenagers.
Financial education, where it is delivered, appears to improve teenagers’ confidence and understanding.
Overall, there has been progress in financial education in schools but there is more to do.
Points to consider
The report notes that the survey is a 'snapshot'. It gives little specific detail about the methodological approach and, while it tracks some changes over the three years (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 does not definitively show causality. However, the report does call for a longitudinal evaluation of impact.
- The report discusses the survey findings in relation to the APG recommendations, as well as the wider priorities for financial education that MAS established.
- Despite the limitations, the report offers a good overview of provision, views and behaviours that could form the basis for further research. There are useful figures about regional (and gender) disparities in financial education provision.