Politics
70% want mandatory financial education in UK schools
70% of folks in the UK want schools to teach personal financial education. Meanwhile, less than one in 10 young people passed a financial literacy test. Just 23% across all ages passed the quiz, down from 49% in 2024.
Mutual society Shepherds Friendly carried out the research. It surveyed 2,000 people on their knowledge of ISAs, investing, insurance, income protection and general personal finance.
It found that self confidence in finance topics is low. Investing, ISA saving and pension planning were the top three areas of struggle. It doesn’t help, of course, that long-term wage stagnation has left many people living hand-to-mouth.
Men were more likely to pass than women (29% vs 17%), while only 9% of 18- 24 year olds achieved a passing score. Young people were the least confident overall, with 51% saying they’re struggling to manage their finances. Among those 55 and over, 34% passed.
As financial literacy becomes increasingly crucial in navigating modern life, 70% of respondents said that financial education should be a mandatory part of the school curriculum.
You can read the full research here.
Nottingham had the highest pass overall pass rate at 33%, followed by Bristol (30%) and Brighton (29%). Meanwhile, Leeds had the lowest pass rate at just 15%.
Financial education could boost confidence
Young people face the biggest knowledge and confidence gaps
Confidence is also low across key financial topics. Nearly half (48%) said they don’t feel confident investing, 43% aren’t sure which ISA suits their goals, and 39% lack confidence with pension planning.
However, younger generations were consistently found to have the lowest levels of both understanding and confidence across almost every financial topic. Over half (56%) of 18-24 year olds said they don’t understand pension planning, while 55% said they aren’t confident in choosing the right ISA.
This lack of financial confidence appears to be having wider effects on wellbeing. 51% of 25-34 year olds said they struggle to manage their finances amidst rising costs, and almost half (46%) said financial worries have caused them to lose sleep. A further 55% said money concerns have negatively affected their mental health.
The findings suggest that the absence of financial education earlier in life is leaving younger adults ill-equipped to manage their money and plan for the future. Seven in ten (70%) believe personal finance should be part of the school curriculum. And 72% said lessons should focus on practical skills such as how to save and invest.
A lack of financial understanding may also be preventing people from preparing for emergencies or achieving their long-term goals. Around half (54%) of the respondents said they regularly review their financial progress. But just three in 10 (34%) feel confident they’ll reach their financial goals.
Experts warn that without improved access to financial education and advice, many people risk falling further behind in their financial wellbeing.
Derence Lee, chief finance officer at Shepherds Friendly, said:
Our survey showed that many people feel unsure about different areas of personal finance, from investing to insurance. But understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money.
Improving financial literacy can benefit everyone, whether you’re just starting out or already thinking about retirement.
There’s plenty you can do to build your money skills. Even small steps, like exploring online learning tools, using budgeting apps, or reading trusted resources, can make a real difference. For those who feel unsure where to start, speaking to a qualified financial adviser can help turn confusion into clarity.
By improving financial knowledge, we can all make smarter decisions, feel more confident, and build a stronger financial future for ourselves and our families.
Featured image via the Canary