Understanding financial terminology, products and concepts can be really difficult - and that means we don’t always feel empowered and confident managing our money.
So it’s no surprise that many people want the next generation to be better set up for the future and capable of making the right choices.
According to research from Shepherds Friendly, seven in ten (70%) Brits believe financial education should be mandatory in schools.
And a similar number (72%) say that schools must focus on practical skills like saving and investing.
Why financial education matters
Shepherds Friendly is concerned that if people aren’t properly taught about money, their long-term financial wellbeing could suffer.
We’re already seeing signs that many people could already be on this course.
For instance, figures showed that just 54% of Brits regularly review their financial progress.
And only 34% feel confident they’ll reach their financial goals.
“Many people feel unsure about different areas of personal finance, from investing to insurance,” said Derence Lee of Shepherds Friendly.
“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.”
Less than 1 in 4 people pass money literacy test
As part of the research, Shepherds Friendly also carried out a money literacy test - and just 23% passed
That’s a sharp decline from 49% in 2024 and 27% in 2023.
But beneath the headline figure, some notably inequalities were highlighted.
For example, nearly one in three (29%) men passed the test, compared with less than one in five (17%) women.
Young adults lack financial confidence
Younger adults were also found to be less knowledgeable about money matters than other age groups.
Just 9% of 18 to 24-year-olds passed the test, compared with 34% of those aged 55 and above.
Figures also showed that younger generations have the least understanding and confidence across almost every financial topic.
Among 18 to 24-year-olds, 56% don’t understand pension planning and 55% aren’t confident choosing the right ISA.
It’s a similar situation among 25 to 34-year-olds.
The survey found that 51% struggle to manage their finances amid rising costs.
And 55% say money concerns have negatively affected their mental health.
What this means for employers
Today’s workforce includes generations who may not have received practical financial education.
And as they manage burdens like rising living costs, financial stress can lead to distraction, absenteeism, reduced productivity and burnout.
This is where workplace financial wellbeing support becomes essential and pointing people towards the tools that let them take control of their lives.
“Even small steps, like exploring online learning tools, using budgeting apps, or reading trusted resources, can make a real difference,” Mr Lee added.
Written by James Glynn
Senior Financial Content Writer
