- 10 years since its introduction to the secondary school curriculum, only one in four young adults (18-21) are leaving school having received financial education.
- Young adults are confident in their financial knowledge but 79% have never created a budget, 76% have never paid a bill, and 77% have not set aside funds for unexpected expenses.
- TikTok teaching: Almost a third of young adults are turning to influencers for financial education with TikTok as the most popular platform
- Only 17% of young adults reported receiving financial guidance from their bank
- Santander UK calls for a new social and relatable strategy to help young adults engage with financial education and takes action with a new financial education programme for young people reflecting their financial needs and use of social media influencers, launching in 2025.
New research from Santander UK reveals that young adults are leaving school without a formal financial education, raising concerns about the nation’s financial literacy.
A decade after financial education became part of the secondary school curriculum, young adults are still leaving school unprepared to manage their finances. According to a new research report from Santander UK of 2,000 18-21-year-olds, only one in four (26%) young adults report having received any financial education at school, leaving approximately 4million, without a fundamental understanding of money management.
Social media fills the financial literacy gap
In the absence of structured financial education in school, young people are increasingly turning to online sources, especially social media, for financial guidance and information as they step into an age of financial independence.
Santander’s study found that nearly a third (31%) of young people look to social media influencers for advice, with 25% of those relying on TikTok.
Data shows women (34%) take to social platforms more so than men (27%), yet women also state that a big chunk of their knowledge is from parents and friends – 65% vs. 56% of men.
Financial education falling short
The findings indicate a gap between school-based financial education and the practical skills needed for real-life money management. Just 13% of young adults felt the financial lessons they received in school were applicable to their personal finances. Critical topics like debt management, overdrafts, personal loans, and emerging debt types such as “buy now, pay later” (BNPL) products – which Creditspring research has shown are the second most common form of borrowing among the younger generation1 – were scarcely covered, leaving young adults unprepared for common financial situations.
Overconfidence hides a lack of financial experience
While many young adults feel knowledgeable, most lack practical financial experience. The research shows a huge 79% have never created a budget, 76% have never paid a bill, and 77% have not set aside funds for unexpected expenses. This combination of confidence and inexperience may lead to potentially risky financial decisions.
Rethinking how banks engage young people
Santander recently found that 47% of the public think providing financial education is the top "wider obligation" for banks. However, while nearly every bank offers a financial education platform, almost half (45%) of young adults have never engaged with them. With 45% expressing a desire to improve their financial skills but unsure how—and 35% reporting daily financial worries—it is clear that financial institutions, including banks, must explore new ways to engage young adults, stepping beyond traditional methods to meet them where they are: on social media.
William Vereker, Chair of Santander UK, comments: “Young people’s understanding and effective management of money is essential in their own lives, but also for wider society and economic growth. Empowering them with the knowledge and skills to develop a healthy, resilient relationship with money directly impacts the economic stability of the country, by reducing individual debt, instilling investment habits and encouraging entrepreneurship.
“Our research raises two significant concerns: firstly, that the current school curriculum does not always equip young people with the knowledge they need to plan and manage their financial futures; and secondly, that this gap is leading young adults to potentially unreliable online resources for advice. Banks have a critical opportunity to connect with young people by delivering accessible, engaging financial guidance tailored to their needs and preferred platforms. We know young adults take to social media for news, for inspiration, to shop, to sell so it is imperative that we position ourselves where they are and for what they are asking from us.
“Next year we’ll be launching a financial education programme that meets the needs of young people and helps equip them properly for their financial futures.”
Although banks have invested in online resources, these platforms are underutilised, with nearly half (45%) of young adults reporting they have never engaged with them, and women being 11% less likely to use them than men. This lack of engagement has contributed to a worrying statistic: over a third of young people are concerned about their finances on a daily basis (35%).
-ENDS-
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Notes to Editors
- Research was conducted By Savanta between 22nd October and 5th November.
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 June 2024, the bank had around 19,600 employees and serves around 14 million active customers, including 7 million digital customers via a nationwide 444 branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
Banco Santander (SAN SM, STD US, BNC.LN) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Banco Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Banco Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first quarter of 2024, Banco Santander had €1.3 trillion in total funds, 166 million customers, 8,400 branches and 211,000 employees.