1 in 3 teens ‘don’t feel confident managing their money in the future’

Many young people don’t feel confident about managing their own finances in adulthood, a new survey has found.

According to research by Moneyfarm, 36% of teenagers feel unsure about looking after their own money in the future.

This may be, in part, because many are completely in the dark about key financial terms and concepts.

For example:

• 58% said they have no idea about budgeting
• 43% don’t know to save money
• 61% don’t know the difference between a debit and credit card
• 20% don’t know what the term “inheritance” means
• 28% don’t know what national insurance is

Teenagers aren’t saving for the future

Worryingly, teenagers were found to be more likely to spend money impulsively rather than put some away for a rainy day.

According to the Moneyfarm study, one in six teenagers don’t have any savings, either in an account or on a pre-paid debit card.

Figures also showed that one in three spend any money they receive straight away, mainly on luxuries including:

• gaming
• clothing
• going out
• takeaways
• skin care
• cosmetics
• music

Chris Rudden, head of investment consultants at Moneyfarm, said: “Financial literacy is a crucial life skill which needs to be prioritised. 

“It is important that we address these gaps in their understanding to ensure that today’s children are well-prepared for the financial realities of adulthood.”

Most people who’ve sought debt advice haven’t been taught about money

We want to see better financial education in schools as it teaches essential skills like budgeting, saving and managing debt.

In a recent survey of people we’ve supported with debt advice, we found that 94% hadn’t received any financial education at a younger age.

But significantly, 80% said they believed it would have made a difference to their situation.

And when asked, what topics of financial education would have helped them the most, 77% said budgeting.

This was followed by understanding what credit and debt is (68%) and how to save money and why it's important (62%).