Half of young adults face housing insecurity due to lack of financial education

Half of young adults in the UK say a lack of financial education directly contributed to their housing struggles, according to new research published today by financial education charity Money Ready and funded by the Berkeley Foundation. Launched ahead of World Homeless Day, the findings highlight that millions of young people are entering the housing market without the basic financial skills needed to avoid a crisis.

Just under half of young Brits aged 18 to 40 (48%) have suffered from housing insecurity over the last five years, ranging from rental or mortgage arrears to eviction, emergency accommodation, and rough sleeping. A quarter (25%) have experienced this at the most severe end of the scale – having to sofa surf due to having nowhere else to go, staying in emergency accommodation or a shelter, or sleeping on the street or in a car.

The research highlights a stark association between financial literacy and housing issues – young people with the lowest financial literacy are nearly twice as likely to face housing insecurity overall compared to those with high financial literacy (57% vs 29%). And the correlation is most acute at the severe end of homelessness – low-literacy groups are three times as likely to have faced rough sleeping or eviction proceedings (12% vs 4% for rough sleeping, 9% vs 3% for eviction).

The data shows that 35% of 18-40-year-olds felt completely unprepared for the financial demands of independent living, while over a fifth (22%) report never receiving any formal financial education or guidance at any point in their lives.

Becky Young, Director of Fundraising and Communications at Money Ready, said “On World Homeless Day, we must talk about prevention, not just emergency relief. We are setting young people up to fail if we expect them to navigate a complex, expensive housing market without giving them basic financial tools first. When half of young adults tell us that a lack of financial education directly contributed to their housing distress, we cannot treat youth homelessness purely as an unpredictable crisis – it is an education void. We urgently need real-world money lessons embedded to provide young people with essential independent living survival tools.:

Sally Dickinson, Head of the Berkeley Foundation, said “World Homeless Day shines a necessary light on the systemic challenges facing young people today. This research shows a clear and concerning link – young adults without basic financial education are far more vulnerable to severe housing hardship. While financial education alone cannot solve the structural shortage of affordable housing, leaving young adults to navigate the system without basic guidance significantly increases their risk. By partnering with Money Ready, we are championing early, practical support so that young people enter the housing market informed and resilient.”