Insufficient financial education could harm the long-term prosperity of younger generations

You may be diligently saving a nest egg for children or grandchildren. Yet, without financial education, your efforts might not be as useful as you expect.

Research suggests many children aren’t receiving sufficient financial education at school, leaving them ill-equipped to manage their finances as adults.

Financial education was added to the national curriculum in secondary schools in 2014. However, more than a decade later, a September 2025 IFA Magazine article reported that an All Party Parliamentary Group on Financial Education for Young People found that schools aren’t providing sufficient education on the subject.

In fact, 53% of children are leaving school without having received “meaningful financial education”.

In addition, there isn’t a universal post-16 offer of financial education. At an age when many are transitioning into independence, support could be invaluable in helping young adults manage their finances responsibly.

Gaps in their financial education could mean younger generations make decisions that harm their long-term security because they may lack positive habits or key knowledge.

How to pass on your financial wisdom

Over the years, you’ll have picked up money habits and financial knowledge that could be useful to pass on to your family. Here are four ways you might do that.

1. Make money a topic of conversation in your home

Talking about money is still a taboo subject in some families, but having open conversations about your finances could be valuable.

A June 2025 survey carried out by YouGov revealed that 38% of people still see money as an off-limits topic of conversation. Even among family members, some people find finances difficult to discuss. Among baby boomers aged between 61 and 79, only 56% said they would be comfortable talking about their financial situation with family.

Talking about money is a great way to share your insights with loved ones and help them learn from your mistakes and successes.

You don’t have to share all the details, but explaining how you’ve retired comfortably because you increased your pension contributions or paid off your mortgage early through overpayments could help them make better choices themselves.

If you’re taking steps to build a nest egg for a child, you could involve them. For example, you may regularly show them how their Junior ISA is growing thanks to interest or investment returns.

Please note: An ISA is a medium- to long-term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

A pension is a long-term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

2. Introduce financial concepts at a young age

Financial education is compulsory in schools between the ages of 11 and 16. Yet, research suggests money habits start forming much earlier.

According to the Guardian, 2013 study from the University of Cambridge found that seven-year-olds can form positive money habits and grasp the value of money, delay gratification, and understand how some decisions will affect their future options.

If you have young children in your family, you could use pocket money or cash gifts to teach money lessons and instil habits that could serve them well in adulthood, such as saving a portion of what they receive.

3. Fill in the gaps for teenagers

The Young Persons’ Money Index 2023/24 from the London Foundation for Banking & Finance found that 41% of pupils aged between 15 and 18 get most of their financial understanding from parents or other family members.

With 82% of the teenagers surveyed stating they’d like to learn more about money and finances in school, there’s a great opportunity for families to fill the gaps. Covering essential topics teenagers will need to understand as adults, from how a mortgage works to the compounding effect of interest, could mean they feel more confident handling their finances in the future.

Establishing a relationship where you talk about money may mean they’re likely to come to you for advice in the future.

4. Make adult family members part of your financial plan

Once your children or grandchildren are older, you might want to consider involving them in your financial plan, particularly if you want to pass on assets to them. It could demonstrate the value of seeking financial advice and working towards long-term goals.

In addition, a family financial plan may present opportunities to adapt your existing plan to reflect their wishes or improve your tax strategy.

Contact us to discuss your financial plan

Whether you want to involve the next generation in your financial plan or start building a nest egg for them, we can help. Please get in touch to talk to one of our team.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

An ISA is a medium- to long-term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

A pension is a long-term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.

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