Young People Hungry For Financial Knowledge But Lacking In Key Money Skills: New AAT and Grace Hardy Research Finds

Thousands of young people are ill-equipped to manage money or understand key financial concepts.

New research surveying over 1,500 16–25-year-olds in the UK from AAT (the Association of Accounting Technicians) and Grace Hardy, Founder and CEO of Hardy Accounting, reveals that:

• Less than half of 16–25-year-olds received financial education at school. Where financial education does exist, it often starts too late and is not preparing young people well for adult life.
• Engagement with financial tools, money management and understanding of financial concepts is limited in this demographic:

• A quarter of 16–25-year-olds do not even have a debit card.
• Only half understand how interest is applied to credit card balances.
• Whilst over three quarters of young people have some sort of regular savings habit, almost half are not saving for later life.

The findings released today [17 February] reveal that the financial literacy challenge is more acute for young people from lower socioeconomic backgrounds, as well as young women, with both groups less likely to understand financial concepts and be saving for later in life.

The research also shows that 3 in 5 young people have faced one or more financial difficulties in their lives, including overspending and running out of money, borrowing from family or friends, or confusion over financial products.

Yet the appetite for change is undeniable: 83% of young people expressed a desire to know more about finance and money and a quarter want to know more about how to start their own business.

Where financial education has been received at school, confidence in managing personal finances is higher. Being able to discuss money matters at home also helps. Young people are turning to social media for financial advice – with over a quarter (28%) scrolling for cash tips. This demonstrates the desire to learn but also highlights the vulnerability of this demographic to misinformation.

AAT and Hardy make the following calls to action to ensure that today’s young people, and those that follow, have the support they need to be financially fit and real world ready:

• Deliver quality formal financial education from age 5 through to 19, with the right support for those delivering:  Reforms will only succeed with consistent high-quality teaching and training, engaging materials, and focused support for 16–19-year-olds who have not benefitted from formal financial education at the start of their school lives. 
• Meet young people where they already are, on social media, with the information they need to avoid inaccurate advice: Today’s 16–25-year-olds need credible, verified content on TikTok and Instagram to protect them from misinformation, with clear pathways to trusted sources like MoneyHelper.
• Target the socioeconomic and gender barriers in all forms of education, support and advice: All financial literacy efforts must actively close the wider gaps facing young women and working-class young people to tackle inequality and boost social mobility.
• Ensure government policy incentivises young people to make the right financial choices and follow their entrepreneurial ambitions: Policies must actively encourage saving, investing and entrepreneurship so financial literacy can translate into real positive choices.

Commenting on the research, Sarah Beale, AAT CEO said:

“Financial skills shouldn’t be a privilege – they should be part of everyday life for everyone. There’s a clear knowledge gap, but young people are hungry to fill it. The question is how we address that, so it benefits everyone and leaves no one behind, whatever their background or circumstances. To do that we need high-quality teaching that is properly funded and supported in schools, trustworthy information reaching young people on the platforms they use, targeted action on the socioeconomic and gender disadvantages that hit hardest, and policies that encourage saving, investing and entrepreneurial ambition rather than blocking it. That’s how we give this generation the support they truly need.”

Speaking on her experience campaigning for better financial literacy, Grace Hardy, MAAT added:

“I speak to thousands of young people every week on social media and the message is clear: they’re desperate for straightforward, trustworthy money advice, but the system has let them down. Misinformation spreads fast online, and without reliable voices cutting through, mistakes become expensive lessons. This is why we’re calling for government to fund and verify credible financial educators to create accurate, engaging content on the platforms where young people are already looking for answers. This would allow government-backed resources such as MoneyHelper to reach those in need and support a demographic that will not benefit from the education reforms coming down the track.”

AAT is committed to supporting young people. Alongside our accountancy qualifications, we offer practical, short qualifications at Levels 1, 2 and 3 in business skills and bookkeeping that teach real-world money management, budgeting and business finance skills, building core foundational skills that support progression into a range of careers. Our free Virtual Work Experience programme also opens eyes to finance careers, and Informi, our free platform supports aspiring entrepreneurs.