Young Adults Struggle with Finances Yet Show Little Interest in Learning

London, United Kingdom — Nearly 35% of Gen-Z adults aged 18 to 21 express daily concerns about their financial situations, according to a recent survey by Santander UK. Despite this worry, only 20% are interested in learning about debt management.

The survey highlights the disconnect between financial worry and education. While 93% of young adults surveyed acknowledged general financial concerns, less than one-third reported having learned about student loans in school. Additionally, just 12% recalled lessons on personal loans, and only 21% learned about credit cards during their education.

Mark Weston, director of financial support at Santander UK, emphasizes the importance of understanding debt. “Debt is an important part of most people’s day-to-day finances,” he said. “Borrowing money allows people to buy homes, access higher education, and make big purchases. However, it’s crucial that people know the appropriate risk and reward trade-off before making the decision to borrow, to avoid unexpected difficulties in the future.”

Research from StepChange Charity, published in November 2023, indicates that young adults’ incomes are approximately 28% lower compared to older clients of the charity, translating to an average difference of £490 per month. The findings underline the financial challenges that young adults face in today’s economy.

In response to these challenges, banks and building societies are offering various tools on their websites to assist with financial literacy. Santander UK, for instance, provides free financial health checks and budget calculators. Additional resources can be found on the UK Government-backed MoneyHelper service, which helps individuals with budgeting and debt management.

Young adults who are worried about their debts are encouraged to reach out to their lenders early on. Seeking help can open up a wider range of options to tackle financial problems. Education in financial literacy could be crucial in helping young adults make informed decisions regarding their financial futures.

The survey, conducted by Savanta with over 2,000 participants aged 18 to 21 across the UK during October and November 2024, sheds light on the urgent need for more comprehensive financial education in schools.