Why Only a Quarter of Young Adults Learn Financial Literacy at School and What Could Happen Next
Just 26% of 18–21year-olds in the UK report receiving any formal financial education at school. That leaves approximately 4 million young people navigating adulthood without essential money skills like budgeting, saving or recognising scams. Many turn to social media influencers for guidance, often at their peril.
Santander
Education Gaps: Hurting Lives
Financial illiteracy isn’t just disruptive, it’s damaging. Studies consistently link poor financial education to mounting debt, reduced savings, and heightened stress. If only a quarter of young people are taught financial basics, what hope do we have of building a financially resilient generation?
A Step Forward: New School Curriculum
There’s cause for cautious optimism. England will roll out 80 new lessons in schools aimed at ages 5–16. These will cover fundamental money skills like recognising ads, managing online spending, and identifying scams, while older students will learn about inflation, cryptocurrency, credit and more.
The Guardian
This is the sort of real-world relevance students deserve in their education.
Financial Support in the Real World
Policy and curriculum changes are vital. So are practical supports. Ofgem’s recent £9 million funding to charities through its Energy Redress Scheme allows organisations to deliver energy and financial support directly to vulnerable households. In areas like Liverpool and Staffordshire, Citizens Advice used these grants to support thousands with practical advice.
That’s the kind of frontline strength that changes lives today.
What Could Happen Next
Experts suggest that future progress might focus on:
- Embedding financial education into the core curriculum – ensuring lessons are consistent, assessed, and not left as optional extras.
- Supporting educators with tools and training – giving teachers the confidence and resources to deliver money lessons effectively.
- Sustaining practical delivery through charities and community schemes – so that short-term funding models don’t undermine long-term support.
Hyfa Foundation's Vision
Hyfa Foundation's approach spans education, support and community outreach:
- We design practical content on budgeting, managing money, and avoiding scams that works for young people and adults.
- We collaborate with local partners to deliver money skills where they’re needed most.
- We highlight the need for consistent financial education and support through policy conversations.
Final Thought
Financial education isn’t optional. It’s part of making society fairer, stronger, and more resilient. With curriculum reform on the horizon and practical schemes already at work, there is momentum but more remains to be done. Hyfa Foundation is committed to playing its part in helping make that change real.
Please do read about our Policy Briefing Paper on Financial Inclusion
Enter AI: A New Way to Make Finance More Inclusive?
How AI Is Transforming Financial Inclusion for Marginalised Communities
Artificial intelligence is already shaping how we bank, borrow, and budget. In fact, 75% of UK financial firms are now using some form of AI (Bank of England & FCA, 2024). But AI’s real value lies in what it could do particularly for groups historically excluded from the system.
Here are some ways AI is being used to break down financial barriers:
1. Alternative Credit Scoring
Traditional credit scores often exclude people without long borrowing histories. But AI can analyse alternative data, like mobile phone usage or rental payments, to assess someone’s financial reliability more accurately. This gives access to credit for people who would otherwise be rejected.
A Nature review (2025) shows AI-driven credit models have “strong potential for increasing approval rates among underbanked populations, when designed ethically and transparently.”
2. AI-Powered Budgeting & Advice
For those overwhelmed by financial planning, AI-driven apps can offer personalised support such as budgeting tips, savings goals, and reminders based on real spending patterns. These tools can be especially helpful for people in transition or facing income insecurity.
Kaplan notes that AI-powered advice tools can “fill gaps in financial literacy while providing consistent, judgement-free guidance.”
3. Detecting Bias and Reducing It
One of the most promising (and challenging) aspects of AI is its ability to surface and correct bias if the systems are designed with that in mind. The UK’s FCA is exploring synthetic data models to simulate how underrepresented users are treated, which could help spot and fix discrimination early in the process.
The Warning: AI Isn’t Neutral
It’s easy to assume that because AI is based on data, it must be objective. But as several studies have warned, AI can replicate the very same biases it’s supposed to solve if it's trained on skewed or incomplete datasets.
A study on LGBTQ+ exclusion in algorithmic design found that “cis-heteronormative assumptions are embedded in mainstream training data,” leading to persistent underperformance for marginalised users (Springer, 2024).
That’s why it’s crucial that developers, banks, and policy-makers actively design for inclusion not just efficiency.
Where Hyfa Stands
At Hyfa, we believe AI and technology have the potential to make life better but only when those creating the tools are consciously including those who are often excluded.
We’re committed to:
- Working with partners to design inclusive financial tools
- Educating people about their rights and options
- Advocating for ethical, community-first innovation
Final Thought
AI won’t fix financial inequality on its own but it can be part of the solution. With the right safeguards, ethical standards, and people-first thinking, we can use technology not just to manage money but to build a more inclusive financial system for everyone.
Want to learn more about our work around financial wellbeing and technology?
Explore our Resource Hub or connect with us on LinkedIn.