Financial Awareness Gaps Amongst Young Adults
Santander has issued a warning after it emerged four in five young people are not interested in learning about debt management. This lack of awareness is concerning, given that borrowing is becoming increasingly prevalent amongst young people.
- Almost one-in-four (23%) 18–24-year-olds are in some form of financial difficulty.
- Common forms of debt include buy-now-pay-later and student finance.
- Research from debt charity Step Change finds that young people are struggling with debt, with around £20 billion loaned to 1.5 million higher education students each year.
Despite this, the school curriculum falls short of teaching young people about debt management, with less than a third (30%) of young people surveyed learning about student loans at school.
- Only 12% had learnt about personal loans.
- Only 21% recall learning about credit cards.
- More than a quarter (25%) express a desire to know more about credit cards.
Mark Weston, Director of Financial Support at Santander UK, said: “Debt is an important part of most people’s day-to-day finances. Borrowing money allows people to buy homes, access higher education, and make big purchases. However, it’s crucial that people know the appropriate risk and reward trade-off before making the decision to borrow, to avoid unexpected difficulties in the future. “That’s why it’s vital that we give young people the tools needed to make well-informed decisions around their finances.
Simple and free-to-use tools, such as our Financial Health Check, are a great place to start – giving an overall view of day-to-day spending, budgeting and borrowing. This check is available to all Santander customers, and can help young people get a better understanding of their financial situation.
| Financial Tool | Description | Benefits |
|---|---|---|
| Finecal | A free online calculator that helps users budget and track their spending. | Provides a clear overview of day-to-day spending and helps users identify areas for improvement. |
| Santander Savings Account | A savings account that earns interest and helps users build savings. | Provides a safe place for users to save money and earn interest, helping them achieve their long-term savings goals. |
| Debt Management Plan | A plan that helps users manage their debt and develop a budget. | Provides a structured approach to managing debt and helps users achieve financial stability. |
Despite the financial gaps amongst young adults, there are resources available to help them make informed decisions about their finances. It is crucial that young people are aware of the risks associated with borrowing money, and take steps to manage their debt effectively.
“The financial situation of young people is a concern, and it’s vital that we provide them with the tools and resources they need to make well-informed decisions about their finances.”
– Mark Weston, Director of Financial Support at Santander UK
As a society, we must work together to bridge the financial awareness gaps amongst young adults.
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