A new survey reveals significant financial anxieties among young adults, highlighting a critical need for improved financial literacy education. More than a third (35%) of 18-21-year-olds report daily financial concerns, a concerning trend with potential societal implications.
The survey, conducted by Savanta among 2,000 young adults, uncovers a widespread lack of practical financial skills. A striking 79% have never created a budget, 76% have never paid a bill on time, and 77% haven't set aside funds for unforeseen expenses.
Turning to social media for guidance, a substantial portion of respondents (31%) rely on social media influencers, with TikTok emerging as a particular source of advice for 25% of respondents. However, the survey also shows that only a small percentage (13%) believe the financial education they received in school is applicable to their current needs.
"Young people's financial understanding is crucial for both individual well-being and broader economic growth," stated William Vereker, chairman of Santander UK. "Equipping them with the necessary skills to manage their finances effectively directly impacts national economic stability, reducing debt, encouraging investment, and fostering entrepreneurship." Santander UK plans to launch a financial education program in 2025.
The findings underscore the urgent need for accessible and relevant financial education programs tailored to the specific needs of young adults. This survey, commissioned by Santander UK, sheds light on a potential gap in current educational approaches, urging a more proactive strategy to foster financial literacy within this crucial demographic.
