SmartPurse has conducted research that shows despite financial education being included on the UK’s National Curriculum since 2014, parents are still concerned about their children’s financial literacy.
In this new report, ‘Invest in their future’, research from 250+ UK parents has found:
- 66% of parents do not believe their children receive enough financial education
- 78% believe that a generational money gap exists
- Less than 2/10 parents talk to their children about money every day
When asked to rate their financial confidence from 0 to 10, the majority of UK parents selected 7/10. Examining these results from a gender-perspective, SmartPurse found that female parents are 2.5x more likely to rate their confidence below 3/10, and 1.2x more likely to rate it below 5/10, than their male counterparts.
Guy Rigden, CEO of MyBnk, a contributor to this report, commented, “Barely a third of 7-17 year olds say they have received any form of money lessons. We cannot continue creating generations of young adults who don’t know how to save or make informed decisions. For marginalised groups, such as girls and young women, the margins are just too thin. It drives inequality and blights mental health.”
One aspect of family finances hit hardest by a lack of education is investing. SmartPurse found that, for 72% of parents, their financial education impacts their decision to invest. Given that just 32% currently invest their money, the inadequacies of their education are clear.
94% of parents would start investing sustainably if they were told that this concept brought larger rewards. Olga Miler, Co-founder of SmartPurse, spent over a decade working in financial services, and specialises in gender-smart investing.
“In the midst of all the tragedies our world has faced over the last few years, there has been one positive shift: the increasing popularity of sustainable investing. Our research shows that while UK parents want to teach sustainability to their children, a lack of access to and understanding of this process keeps them from gaining practical experience. If we want this popularity to continue, our children need to be educated on the opportunities of their money, and this education starts with their parents.”
‘Invest in their future’ includes key insights into the generational money gap and how newly emerging trends, from cryptocurrency to sustainable investing, impact the younger generation, featuring expert contributions from MyBnk and nimbl.