Call for more funding towards financial literacy

A new report released UK Finance has set out the financial services industry’s impact and recommendations for boosting financial literacy in the UK for children and young people. Although financial education is increasingly recognised as a fundamental life skill, there is limited public funding for it.

Financial services are the biggest funder of financial education by sector, voluntarily contributing 80 per cent of total funding (£7.5 million). In 2023, the industry provided financial education lessons to over 4.1 million children and young people; focused support to over 83,000 vulnerable children; and engaged with over 25,000 schools.

However, UK Finance says that there is still a significant amount of work needed to fully achieve our goals in boosting financial literacy in the UK. The report sets out five key recommendations:

• The integration of financial education in the national curriculum across all devolved nations. This is essential to guarantee universal access to financial literacy education, starting from a young age and laying a solid foundation for future financial competence.
• The creation of a structured financial education curriculum roadmap. A curriculum needs to be developed that methodically enhances financial knowledge and skills, beginning in early childhood and extending through the teenage years. The goal is to provide a steady and evolving understanding of financial matters as children progress through their educational journey.
• Mandating financial education in all schools. Financial education should be a compulsory subject across all schools, including academies and free schools, with a system of monitoring and assessment by Ofsted. This aim is to ensure the consistent delivery of high-quality financial education.
• Practical mathematics education until age 18. This approach would include teaching practical financial skills such as budgeting, understanding savings, and grasping basic tax concepts, which are vital for navigating everyday financial scenarios.
• Enhanced support for teachers. Recognising the crucial role teachers play in ensuring that all children receive a financial education, equipping teachers with the right tools and knowledge is fundamental for the effective delivery of financial education.

Eric Leenders, Managing Director of Personal Finance at UK Finance said “Good financial literacy sets young people up with the skills they need for their whole lives – like budgeting, saving, and understanding debt. We want young people to have the knowledge that will give them financial stability and independence for their future.

“The financial services industry voluntarily delivers financial education to millions across the UK, but to build the foundations for lasting financial capability and inclusion we need more substantial financial education planning and funding from government. We are calling for the subject to be fully integrated into the national curriculum by making the lessons mandatory for all schools.”