Why we need to create a more financially capable generation of young people - Sharon Davies

The rising cost of living, coupled with a weak pound and political and economic uncertainty, has led to many people feeling stressed. More than half of adults have experienced anxiety, and a quarter felt depression because of rising bills, according to a new survey by the Personal Finance Society.

This also affects children and young people, with 67 per cent of young people reporting that they do not feel confident about their financial futures and 6 out of 10 young people admitting that the Covid pandemic has made them more anxious about money.

That’s why I believe it has never been more important to continue to build on our collective endeavours towards creating a more financially capable generation of young people. Research has found that children begin to form their mindset around money habits between the ages of three and seven, so it’s essential that we educate children about money in practical, real and relevant ways, while they are in primary school.

By doing so, we can help support them to develop the tools they need to protect themselves from financial harm in an increasingly technologically driven and cashless landscape. Young people are increasingly exposed to risky, quick-win schemes, with a continued rise of social media influencers providing financial education that isn’t always accurate. They also face threats of online scams, including cryptocurrency adverts that appear to be endorsed by their favourite celebrities.

Providing children and young people with real and relevant financial education not only equips them to deal with the challenges they will inevitably face, it also enables them to plan for their future, by using their skills and knowledge to make more informed financial choices.

At Young Enterprise, we work with young people and their educators and parents and carers to help them learn how to earn and manage their money and equip them with key employability skills. Through our programmes, we make conversations about money and finances engaging, relatable and practical to help young people make stronger links between what they learn and how they can transfer that learning to their own lives and futures. This view was confirmed in a recent survey Young Enterprise conducted with teachers, which found that 96 per cent of them agree that being able to apply learning in real-world contexts is important.

On a recent visit to a primary school in Leeds, I was so impressed by the commitment and dedication of the entire school team in helping their pupils build positive attitudes and behaviours with money that they encourage them to share with their families.

The children I visited in this school were fortunate that their school recognise the importance of teaching financial education. We want to help more schools across the region teach lessons about money matters.

Understanding from a young age how to manage money can provide people across Yorkshire with the right tools to maximise their potential and transform their futures. Sharon Davies is the CEO of education charity Young Enterprise.