Improve financial education to boost resilience in young people, Yorkshire experts say

Charity leaders, think-tank representatives and members of parliament came together on Friday (Friday, 13 September) to discuss the financial resilience of young people, as part of an event held by Yorkshire Building Society.

The event, to mark UK Savings Week (9-15 September), was hosted by the Society’s director of savings Chris Irwin, and Luke Charters, MP for York Outer, also addressed the room. Attendees included representatives from key money and debt charities in Yorkshire, researchers and business leaders from the region.

The mutual shared findings from its new report, Saving Generation Z. The report highlights the significant financial challenges faced by Gen Z in the UK (those born between 1997-2012) and offers insights into the financial behaviours, pressures, and educational needs of young people aged 16-27.

The report found that five million members of Generation Z have not saved anything in the last two years and over a third (39%) of respondents said they lacked the knowledge to make important financial decisions. The analysis suggests that financial education at school can play a positive role in supporting people to prepare to manage their finances. Yet only two-fifths (42%) said they had received financial education at secondary school, despite it being introduced to the national curriculum in 2014.

The group also discussed research from a Bristol University Study that Yorkshire Building Society sponsored as part of UK Savings week. This in-depth study spanned over 10 years of insight and demonstrates the positive impact even a small amount of savings can have on people’s life satisfaction.

Chris Irwin, director of savings at Yorkshire Building Society, said: “We know saving isn’t easy for everyone and that some people find it challenging to meet the costs of day-to-day life. But as Bristol University found in the report, building a safety net – no matter how small – really does pay off in peace of mind and providing security.

“It was a pleasure to host the event and see like-minded organisations coming together to discuss what more can be done to increase the UK’s financial resilience.”

Luke Charters MP said “It was fantastic to meet with a range of experts on Friday. Young people entering financial independence are faced with unique challenges. I believe greater provision and depth around financial education in the curriculum has the capacity to change lives.

“That’s why I want to work with this Government to equip future generations with the confidence, knowledge and skills they need to build their resilience and wellbeing.

“By doing so, we will put more money in people’s pocket, with the only cost being the time we lost in not doing this sooner.

To address the issue, guests discussed the current challenges faced by young people right now and what needs to be done to support young people to build financial resilience by saving.

Recommendations included:

• Improving financial education in schools – by making financial education part of the national curriculum in all primary and secondary schools in the UK, so that all students receive it, and improving the breadth and quality of what is provided.
• Targeting financial information at Gen Z more effectively – by improving our understanding of what influences their financial behaviours and reflecting this in the way financial organisations and charities communicate.
• Developing financial products that reflect the challenges facing Gen Z – through offering services that incentivise and enable them to reach financial goals in new ways.