Teaching children about money from a young age can be very impactful, with chores in exchange for pocket money embedding the value of money into their consciousness.

However, there is then a wide gap between washing cars and paper rounds, to learning modern financial literacy skills such as managing bills, household budgets and – importantly – savings, out in the real world.

Whether off to university, starting an apprenticeship, joining the world of work, or travelling, once young people leave education, many are uncertain how to handle modern financial situations.

Last year, a survey by Compare the Market and MyBnk (a UK charity delivering financial education workshops for five-25 year olds) highlighted that most young people entering adulthood are ‘financially illiterate’, which could ‘harm their ability to make good money decisions in later life’, with only two in five considered financially literate.

The study also found almost two-thirds (61 per cent) of young adults do not recall receiving any financial education at school.

Moving onto university, a concerning 82 per cent of students are worried about making ends meet, with this causing issues with diet (49 per cent), mental health (55 per cent) and their social life (62 per cent).

Our young people are having trouble understanding how to manage their finances, so, what can we do?

Here are some practical suggestions you can offer young people you know who might be trying to navigate personal finances in their late teens or early 20s.

Savings

One way to rectify and relieve the anxiety around money, is to encourage our young people to build a regular savings habit.

When saving for long-term goals – travels, a house, a family, or just being financially secure – there are a range of options out there to look into as young people investigate saving for the first time.

Even putting aside a few pounds each week adds up. Encourage them to look into alternative banks and building societies, like Saffron, that can offer very competitive rates on longer term savings.

Student loans

For some, a student loan is the only way to support themselves through further education, however it can be a burden later in life. To avoid this, students should think about ways to minimise loan size and understand the rules around repayment.

It's best to only borrow what is absolutely necessary and supplement it through part-time work, and explore grants, and even scholarships to try and steer clear of a loan entirely.

For more help there is lots of advice on the UCAS website.

Young people discounts

There are lots of schemes available to help young people keep costs down, from Amazon’s discounted Prime membership rate for 18–22-year-olds, student perk apps UNiDAYS or Student

Additionally, make sure they are making the most of other benefits such as the Young Person’s Railcard (16-25), free Office 365 with an academic email address, and other student discounts.

Talk about money

Talk openly about finances. Let them know they can come to you with questions or for advice, encourage them to talk to financial institutions, or – if at university or college – many places have student finance advisors.

Sharing your own experiences and mistakes can also provide valuable lessons and help them feel more comfortable discussing financial matters.

Showcase how you budget, save and spend in your life, explaining how it helps you plan while enjoying yourself too.

By equipping our young people with financial knowledge and skills, we’re giving them the tools to build a secure and prosperous future.

Your guidance can help them avoid common financial pitfalls and empower them to make informed decisions as they navigate the complexities of adult life.