According to research from Yorkshire Building Society (YBS), nearly two in five (39%) of 16 to 27-year-olds lack the confidence to make important financial decisions, including those related to mortgages and property ownership.
Only half (56%) reported knowing how to budget and just 58% said they can set the long-term financial goals needed for managing mortgage commitments.
Family was the primary source of financial education for 58% of young people, but more than half agreed that financial education should be taught in formal education.
The research indicated that 40% of young people did not know where to seek financial advice, compared to 24% of the wider population.
Two-fifths (41%) were unsure whom to trust for financial guidance, compared to 32% of all adults.
YBS urged the Government to enhance financial education within the national curriculum for primary and secondary schools.
Chris Irwin, director of savings at Yorkshire Building Society, said: “This research shows how important it is to talk with young people about money and help them gain an understanding of important financial topics such as savings, debt, interest and tax.
“With such high numbers of young people expressing a lack of confidence in their knowledge in key areas of finance and falling into potentially damaging behaviours it is clear that young people need to be entering adulthood armed with more knowledge and confidence when it comes to money.
“The number of young people who simply did not know where to turn for advice or rely on their family for input was also an area of concern.
“The majority of people we polled agreed that schools were best placed to deliver financial education.
Irwin added: “In our recent report – Saving Generation Z – how 16–27-year-olds spend and save – we called for the Government to improve financial education in schools by making it part of the national curriculum in all primary and secondary schools across the UK and improving the breadth and quality of the learning provided.
“We hope that this will be included in the curriculum review so all young people enter adulthood feeling confident about their knowledge of finances.”
