In the UK, the topic of finance is trending amongst young people but many of them have little knowledge on the subject. A survey showed that only 1 in 4 students are taught financial education, this means when young people enter adulthood and independence they miss out on having essential skills for managing their money and more. This lack of knowledge can cause negative consequences for individuals’ finances in the future.

Here are some of the main reasons for this issue:

Lack of Consistent Curriculum

Surprisingly financial education is included in the UK curriculum, although it is inconsistent. The subject is meant to be taught in secondary schools as part of personal, social, health and economics (PSHE), but the quantity and quality of this lesson depends on the school. Many schools briefly scan over this topic not taking it as seriously, which results in students not getting full understanding. 

Teacher Training

A possible complication for this could be that many teachers do not have the training or resources to teach finance effectively. It is a specialised skill and since most likely the teachers also got minimal financial education, they could feel inexperienced and that they’re not the right messenger for this certain subject. As well as teaching students more life lessons, teachers should also increase their professional development to ensure that they feel confident to teach and students are well prepared.

Curriculum Overload

The education system in the UK is filled with a wide array of subjects that students are required to learn, and there’s a strong focus and slight pressure on achieving academic qualifications like GCSEs and A levels. This intense emphasis on traditional subjects often leads to important topics such as financial education, being pushed to the sidelines or crammed into a short time frame. As a result, these crucial lessons don’t get the attention they deserve, leaving many young adults without the financial knowledge they need to navigate their future.

Government Initiatives and Support

The UK government has been proven to make efforts towards improving financial literacy. For example, in 2014, financial education was officially introduced as a mandatory component of the national curriculum for secondary school students in the UK. This was a significant step towards addressing the lack of financial literacy among young people. However, many experts have raised concerns about inconsistent implementation of this curriculum across different schools. They argue that while the subject is included, the depth and quality of the content often fall short. Many students are still not being adequately prepared with essential real-world financial skills. Topics like budgeting, investing, and understanding taxes are crucial for navigating adult life, yet they are often overlooked or only briefly touched upon in the classroom. This gap in education means that many young adults graduate without the necessary tools to manage their finances effectively. 

Challenges and Inequalities

There is a notable divide in access to financial education that varies significantly across different regions and types of schools in the UK. Private schools and well-comprehensive financial institutions tend to offer a more comprehensive financial education curriculum, often incorporating practical lessons and real-world applications that equip students with essential skills. In contrast, schools located in disadvantaged areas frequently face challenges in providing even the most basic levels of financial literacy. This disparity in educational resources and opportunities further exacerbates existing social inequalities. Students from wealthier backgrounds typically have greater exposure to financial skills, not only through formal education but also through supportive home environments and extracurricular activities that emphasise financial knowledge. As a result, this unequal access to financial education perpetuates a cycle where those from less affluent backgrounds may struggle to develop the financial competencies necessary for adulthood. 

Conclusion

Enhancing financial education in the UK is considered crucial for cultivating a generation that is financially savvy and capable of making informed decisions. Although the government has made progress in this area, there remains a significant amount of work to be done to guarantee that every student receives the thorough financial decisions necessary for success in adulthood. Increased investment in teacher training, curriculum development, and consistent application of financial education programs could play a pivotal role in ensuring that future generations are better prepared to manage their financial futures effectively.Â