Financial Awareness Day – four out of five say financial education could have helped them avoid problem debt

To mark Financial Awareness Day 2024 (14 August), we’re continuing to call for better financial education in schools.

An ongoing survey of customers who contacted us for help with problem debt found 95% didn’t receive any financial education and 81% felt having done so would have made a significant difference to their current situation.

We believe better financial education in schools would help to improve prospects for all children by helping them avoid future money problems.

Why financial education matters

When we asked our customers how financial education might have improved their current situation:

• 75% said it would have helped them make better decisions on saving and spending
• 68% believed it would have given them confidence in managing their money
• 51% thought it would have given them a more positive attitude towards money

What is financial education?

Financial education helps people manage their money, make informed decisions and plan for a secure future. Having a better understanding of money-related concepts allows people to make better choices and achieve their financial goals. 

Money-related products can be varied and complex, so financial literacy is a crucial skill in today’s world and can help people avoid common pitfalls and build a secure future. Topics within financial education include budgeting, saving, investing and debt management. 

When we asked our customers which topics they would have benefitted from knowing more about: 

• 76% said budgeting
• 68% mentioned understanding credit and debt
• 62% said saving money

Addressing financial inequality

Figures from the World Inequality Lab show that in 2021, the bottom 50% of the population in the UK owned less than 5% of wealth, while the top 10% owned 57%.

Improving financial education in schools is one important step the new government could take to start to tackle this inequality.

Ian Somerset, chief executive officer at Money Wellness, said:  

“This new government has the chance to turn the page on financial inequality in the UK. We appreciate there isn’t a bottomless pot of cash to address the UK’s problems. But measures to reduce the inherent unfairness in society, such as introducing better financial education in schools, don’t have to cost the earth and can make a world of difference.”