Unlocking potential through applied learning: Why investment in FE must go further 

There is an urgent need for consistent, high-quality financial education in schools and further education. Applied learning and teacher support are essential for preparing young people for financial independence, employability, and closing opportunity gaps.

Financial education, often taught in maths, and also in PHSE and citizenship, has the power to prepare young people for the future, helping them to develop responsible money habits, make informed choices and handle financial risks. Yet not all young people receive this basic financial education through the curriculum, and we know that teacher confidence to deliver this important subject is low.   

High-quality external provision and resources do exist, funded predominantly by the financial services sector and delivered by a range of charities, but this does not reach every young person in the UK. The net result is that only 47% of young people leave school having received a meaningful financial education (at school or home) and two in five teachers don’t actually know it’s part of the curriculum. When provision is this inconsistent, it widens the opportunity gap – leaving behind those young people who are already facing the greatest barriers to social mobility. 

Financial education is also a vital foundation for employability and productivity – the ability to manage money, understand risk, and make decisions is part of the same skillset that underpins enterprise, confidence, and problem-solving. Embedding these skills through applied learning approaches should be central to how the UK prepares its future workforce. 

The Challenge Beyond School 

The inconsistency continues into further education, where many young people take their first steps towards independence – earning, budgeting, or managing debt. At this stage, financial and enterprise education become even more critical, yet there is still no universal framework for delivery across colleges or training providers, and there is less private funding for provision. 

For a sector already managing tight budgets, rising costs, and recruitment challenges, embedding financial and enterprise education in a practical and engaging way – without clear guidance or support – is difficult to sustain. Without system-wide backing, it is extremely difficult to deliver a universal approach so that all young people leave education financially capable and prepared for life and work. 

The recently published Post-16 Skills White Paper rightly focuses on employability and the economy, but it misses a vital element – the financial capability that enables young people to put their skills into practice. Without this, the skills system risks producing qualified learners who are still unprepared for financial independence or the realities of work. 

Why Applied Learning Works 

Enterprise and financial education programmes such as those we offer are practical, inclusive and engaging. They help young people build confidence, develop teamwork and problem-solving skills, while introducing them to the workplace and business mentors. In the FE context, these approaches are especially powerful for learners who thrive on real-world application. 

Applied financial and enterprise activities strengthen employability and link maths, communication, and decision-making skills to tangible outcomes. This is what applied learning should mean in practice – connecting financial understanding with the wider skills young people need to succeed. When students see how learning connects to future careers – through T Levels, apprenticeships or vocational courses – both motivation and retention rise.  

Supporting Teachers to Deliver Consistently 

For some young people, financial learning at home is limited or non-existent; many don’t have access to pocket money, aren’t included in financial decision making and don’t even talk about money in the home. That makes the learning setting even more important – but it can only be effective if teachers are supported. 

In FE, as in schools, staff are willing but under-resourced. Many lack the time or confidence to integrate financial education into existing qualifications. Investing in professional development, providing high-quality resources, and creating peer networks would give teachers the tools they need to deliver with confidence and consistency. 

A Moment for Reform  

Current reforms such as the Curriculum and Assessment Review (CAR) and Post-16 Skills White Paper offer a chance to address these gaps. Both can act as catalysts for consistent, high-quality provision, but only if financial capability and applied learning are recognised as core to the skills system. 

The CAR should give financial education a clear statutory place in the curriculum across all key stages, ensuring it is taught progressively and meaningfully. For FE learners, that means embedding these concepts in both vocational and academic routes, supported by clear expectations and accountability.  

The Skills White Paper, however, has so far placed limited emphasis on life skills like financial capability. That omission must be addressed if we want reform to deliver long-term results. Building a resilient economy depends not only on technical and digital skills, but also on equipping young people to make sound financial decisions, manage risk, and confidently plan for their futures.  

Collaboration is Key 

Employers have a critical role to play. The shift towards Local Skills Improvement Plans provides a real opportunity to embed employer-informed financial and enterprise skills in local provision. Mentoring, contextualised projects, and work experience can all help students connect classroom learning with workplace realities. 

A joined-up approach across the FE sector – supported by targeted investment and shared accountability – would make these opportunities consistent rather than exceptional. 

Why this Matters 

A generation leaving education without the confidence to manage money, make decisions, or see pathways into skilled employment represents a systemic risk and a wasted opportunity to strengthen the economy. Employers already report significant skills shortages, and the absence of structured financial learning compounds them. 

When financial and enterprise education are delivered well, they strengthen employability, improve life outcomes, and build economic resilience which in turn fuels growth. In a rapidly changing labour market, adaptability and confidence are not optional extras – they are essential skills. 

Turning Ambition into Action 

If the government is serious about levelling up opportunity, it must treat investment in financial and enterprise education as integral to its education and skills agenda. That means long-term funding for FE, clear delivery guidance, and a renewed commitment to teacher development. 

The Skills White Paper has taken positive steps on technical education, but it has yet to recognise the role of financial capability in preparing young people for work and life. Embedding this across FE would help turn ambition into action. 

FE can and should lead the way. With the right investment, policy clarity, and professional support, the sector is perfectly positioned to connect learning with life and ensure every young person – regardless of background – has the financial confidence to fulfil their potential.

By Sarah Porretta, CEO, Young Enterprise