Thousands of young people in the UK say their mental health is being impacted by money worries as charities call for greater financial education in early life.
A survey of 2,000 adults aged 18 to 28 found 65 per cent of them said money worries are damaging their mental health, increasing stress and disrupting sleep. A similar proportion (64 per cent) also said they wish they had learned more about managing bills before moving out.
National charity Citizens Advice and Loqbox say the results show there is a “financial education gap” in Britain arising from a lack of importance given to money skills in the curriculum at schools.
Thomas Monaghan, from Citizens Advice, said: “If young people are beginning to manage their finances without the knowledge or support they need, it’s understandable they may feel stressed or lose sleep over money worries.
“When money isn’t managed well, young people can find themselves facing barriers when trying to access credit, like a credit card or mortgage. That’s why we’re working with Loqbox to highlight the important steps they can take to improve their credit score, like fact-checking their own credit file and paying bills on time.”
The survey results also highlight some of the common areas of confusion facing Gen Z adults in the UK, revealing that:
- Over half (51 per cent) believe that using Buy Now, Pay Later to spread the cost of a purchase does not affect their credit score, or are not sure whether it does
- Only three in ten (31 per cent) recognise that being on the electoral roll at their current address positively impacts their credit score, with a further third (31 per cent) saying they are not sure
- Over one in five (21 per cent) falsely believe that getting a parking ticket or fine affects their credit score
The research highlights common barriers that young people run into, with about one-fifth having been declined for a credit card in the past, or declined a personal loan because of their credit history or after a credit check. Limited or non-existent credit history was also a recurring issue, leaving young people paying more for essentials like mobile phone contracts or finding it harder to access rental and housing options.
Tom Eyre, co-founder and CEO at Loqbox, said: “These findings are a clear reminder that we give young people serious financial responsibilities long before we give them the tools to handle them. They are expected to sign contracts and manage debt while still trying to make sense of the small print.”
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The findings come after Nationwide announced last month that it is launching an accreditation for primary school teachers that aims to boost financial education teaching and help children develop money skills. The building society plans to roll out the scheme to secondary school teachers before the end of 2026.
The government has said it is currently developing a new curriculum, with a public consultation set to open in the summer.
A Department for Education spokesperson said: “Economic security starts with education, and financial literacy is crucial to shaping every child’s future. But too many young people have missed out on vital knowledge around how to manage money.
“That’s why our revised, cutting-edge curriculum will ensure children and young people leave school fully ready for work and ready for life so that they are equipped to achieve and thrive in the modern world, including learning about the fundamentals of money from an early age.”