More than a fifth of 16–21-year-olds have never had a conversation about money with their parents or guardians, with 21% of those believing this has negatively impacted their confidence to make financial decisions. Less than half said their parents were transparent about their own finances when they were growing up, with the vast majority stating they would be more confident with money if it was talked about more frequently at home.
The new research from NatWest’s Thrive programme, which surveyed 1,000 16–21-year-olds in the UK, revealed that in some household’s money is still seen as a ‘taboo’ topic. Indeed, young people said that topics including relationships (29%), religion (24%), drugs (24%), alcohol (22%) and sex (21%) were talked about more at home than money - with only 12% saying that money was one of the most frequently discussed ‘difficult’ topics at home.
67% of the young people surveyed think the responsibility is with parents or guardians to teach kids about how to manage their money, 64% also believe schools and educational institutions also have the responsibility to upskill the next generation when it comes to money matters and personal finances.
The new study found that a mere 34% of those surveyed had received any lessons about how to manage their money in school, whereas nine in ten (89%) agreed that children should have some financial education before they reach 16.
Overall, just under half (48%) of 16–21-year-olds admitted they lacked knowledge when it comes to saving money. The study also revealed a seismic knowledge gap when it comes to understanding key financial terminology and commonly used acronyms. Indeed, 65% did not understand what a credit score is, a further 87% were confused by APR (Annual Percentage Rate) whilst a similar number (83%) were unsure of how the stock market works.
Two thirds (65%) of respondents said that a lack of financial confidence would prevent them from achieving some of their life goals, highlighting that a lack of conversation about money could disadvantage young people.
Three quarters of young people (75%) are worried about the impact that the cost-of-living crisis will have on their finances, and of those, 79% admit they feel helpless as they don’t know how to protect their money.
Marcus Rashford MBE, ambassador for the NatWest Thrive programme, said: “Money is a difficult topic to discuss, especially in underserved communities, being the root cause of most anxiety and stress. I was lucky that I had my mum, who worked as a bookkeeper, to guide my financial decisions and offer me a good understanding of how money worked. With ‘Thrive’ we wanted to make sure that all young people had access to that education, building their confidence, and equipping them with the tools they need to get excited about their futures.
"I was so proud to see Their Majesties visit Wythenshawe and particularly, the Youth Centre and Youth Workers that played a huge role in my upbringing.
"I look forward to building upon our learnings from Year 1 and continuing to build out the most effective Thrive programme for more children across the UK.”
The King and Queen Consort met with young people from Norbrook youth club in Wythenshawe, Manchester, Alison Rose, NatWest’s CEO, and Leigh Middleton, CEO, National Youth Agency, on Friday to find out more about the NatWest Thrive programme
Tiger McLean-Parkinson, 17, participant in NatWest Thrive, said: “NatWest Thrive has taught me that no matter your past experiences, you can still make your dreams come true. It has made me really look at my future goals and given me the motivation to start making them a reality.”
To help educate young people on the advantages of financial knowledge and a positive ‘money mindset’, NatWest joined forces with footballer and activist Marcus Rashford and the National Youth Agency (NYA) to co-create the Thrive programme - which launched in 2022. It consists of interactive, discussion-based sessions aimed at cultivating financial confidence and giving them a grounding in how money works. Of the young people who completed four or more NatWest Thrive activities in 2022; 73% increased their overall levels of confidence, 98% felt more confident around money specifically and 63% felt more in control of their future.
NatWest’s CEO Alison Rose has today announced that this year, the face-to-face community-based workshops in partnership with the NYA will double, from 15 to 30 clubs, to reach more young people in England. Over the next five years, NatWest will also transfer £2.92m of its apprenticeship levy to the NYA to support the training of 200 youth workers across the industry in England.
Alison Rose DBE, CEO, NatWest Group, said: “It’s critical that we involve young people in money conversations early on, so that we give them the confidence to make their own decisions and achieve their full potential. Providing young people with the opportunity to learn core skills, and giving them a solid grounding in personal finance is one of the key ways in which NatWest is enacting its purpose-led strategy, helping our customers and the communities we serve to thrive.”
46% of 16–21-year-olds said that their parents or guardians taught them the most about money, 18% said they were self-taught or learnt about money online and 11% said that their friends and peers gave them the most advice about managing money.
However, over a third (36%) said they wouldn’t ask their parents or guardians to help when making decisions about money, with 26% putting that down to their parents’ lack of confidence in their own finances, followed by 19% who said they are embarrassed to talk about money with their parents and a further 19% who said that their parents don’t have the knowledge to be able to give them advice.
However, over half (53%) wish that their parents were more involved with helping them make financial decisions.
The 8-week NatWest Thrive programme has been developed by youth work specialists at NYA, working closely with young people, to ensure all the activities are fun, resonate with them, and are inclusive to young people from a variety of backgrounds.
The programme provides young people with an opportunity to discuss their money worries and concerns around the cost-of-living crisis, as well as equipping them with the necessary life and financial skills to help them feel more confident about their financial future.
Topics covered by the programme include:
- Money Mindset: Developing an awareness of your own beliefs about money, and the potential for beliefs to limit actions that could improve financial wellbeing
- Money Talk: Busting myths when talking about money and outlining ways to have conversations about money with who you are close to
- Own Your Vision: Setting goals for life achievements and effectively plan age-appropriate ways to reach them
NatWest is also developing an employee volunteering programme with the NYA for launch in April, which will see 50 NatWest colleagues prepared with youth work skills and the ability to deliver NatWest Thrive in their local youth club using their volunteering hours.
Leigh Middleton, CEO, National Youth Agency, said: “The voluntary nature of youth work means that there is a relationship of trust with their youth workers and a safe space is created for young people to explore difficult subjects, as well as to unlock their talents and passions.
“NatWest Thrive harnesses this unique relationship, by encouraging them to dream big, whilst also providing the practical tools and resources that are essential to help young people fulfil their potential.”
For more information about the NatWest Thrive programme, visit https://www.natwestgroup.com/news-and-insights/latest-stories/financial-capability-and-learning/2022/feb/natwest-partners-with-marcus-rashford-mbe.html
