Two-thirds of young people say a lack of financial education has led them into debt

Two-thirds of young people believe a lack of financial education has led them into debt, according to a report.

Research has shown vital money habits and skills start to form between the ages of three and seven – yet only 38% of children and young people in the UK have some form of financial education in school.

Studies have also linked high levels of economic deprivation with low levels of financial understanding, making problems worse for already vulnerable communities.

The data was sourced by Santander UK, which is working with ambassadors Ant and Dec to launch a new financial education programme – The Numbers Game – created in partnership with educational publisher, Twinkl.

The learning materials will be accessible to more than 30,000 UK schools, comprising of 600,000 teachers and eight million children and young people aged between five to 14 years old.

Nearly half think they would be better prepared for cost of living crisis if they had received more financial education (Santander/Twinkl)

Ant McPartlin said: “Research has shown how vital it is to have the right resources available for children and young people.”

And Declan Donnelly added: “There’s no better place to start learning about how to handle your finances than at school, and hopefully this campaign can really make a difference to young people.”

First launched in 2019 to promote numeracy, the banking giant believes The Numbers Game has helped more than one million children and young adults become more confident with numbers and money.

Faced with increased cost of living pressures, 83% of adults already reported a rise in their household costs in March 2022.

And 44% feel they would be better financially prepared if they had received financial education covering basic money skills, such as household budgeting.

Mike Regnier, CEO of Santander UK, said: “Fostering key money management skills at an early age will ensure future generations leave school equipped with the foundations for financial independence, and the skills to make better financial decisions.

“As a responsible business, improving financial education and literacy is a key ambition – so we’re delighted that together with Twinkl we can provide teachers and parents with engaging tools which will make a difference to students across the UK.”

Sarah Porretta, Executive Director at The Money & Pensions Service, added: “We believe that The Numbers Game learning resources will make an important contribution to that national goal, by giving more teachers and parents the confidence, skills and knowledge to teach financial education.”