Building a financially literate Britain: why schools alone aren’t enough
Imagine leaving school unable to read a payslip or budget for rent. For millions of young Britons, this is a reality. Recent research by Santander reveals that only one in four young adults in the UK recall receiving any form of financial education at school – a major learning gap with life-long consequences.
Without a grounding of financial knowledge, young people risk falling into debt or missing investment opportunities, which can lead to financial insecurity in adulthood. When looking around the world, advanced economies such as Japan and Sweden have shown that a systematic approach to financial education leads to greater participation in financial markets and a more resilient economy. As a foundation of inclusive growth, financial education should remain central to the government’s policy agenda.
The recent Curriculum and Assessment Review helps to deliver on this agenda by recommending that financial education be included in the national curriculum in all primary and secondary state schools, including academies – an approach our industry has long advocated. For this to work, teachers themselves will need dedicated training, curricula must include high-quality and consistent materials, and standards must be rigorous.
While this recommendation is welcome, education in schools alone is not enough. Instilling financial knowledge and engaging with finances should be an ongoing process throughout life.
Building a financially literate society also requires collective action. Government, regulators and industry must all play their part. TheCityUK’s recently published report, ‘From Cash to Confidence: Building a Nation of Investors’, calls for a unified individual investment strategy that aligns tax, regulation, and education with clear policy goals. To build an investing nation, financial knowledge must be instilled, reinforced, and applied at every stage of life.
We need coordinated action to make financial education systematic – not just in schools, but also in workplaces, and through critical life moments. The financial services industry has long been focused on helping to strengthen financial education across the nation through a range of initiatives. It is providing young people, adults, and families with ‘learning by doing’ opportunities in schools, communities, and online. Youth investment accounts let teens invest with parental oversight, gaining real experience in managing portfolios, while integrated platforms combine educational resources with access to fractional shares for a more informed investing experience.
The industry is also partnering with schools and community groups to deliver financial literacy workshops, mentoring, and resources – helping people of all ages build confidence and make better financial decisions. But to expand and enhance the impact of existing initiatives, better coordination across government, regulators and industry is key.
A UK equivalent of the Japan-Financial Literacy Education Corporation (J-FLEC), a public-private organisation created to help people acquire knowledge about finance and the economy and use it in their daily lives, could be developed. Jointly governed by the Department for Education, HM Treasury, and the FCA, it could provide the continuity and strategic oversight needed for success. However, this will require sustained cross-Parliament commitment.
A systematic approach to financial education will empower individuals to make good decisions about investment, enabling them to invest in a diverse range of assets and driving investment into regional businesses, while helping families build financial security. The government’s agenda has the right focus, but without sustained and collaborative action with regulators and industry, the goal of developing a financially literate nation will remain unrealised.
The task is urgent, and the route is clear. Building a financially literate Britain requires systematic financial education, underpinned by strategy, measurement, and collaboration. This is not a nice to have, it is the foundation of inclusive growth, long-term wealth creation, and a more resilient future.