Trainees must learn about money, new research suggests

Today’s young people should have access to training to deal with their finances in addition to boosting vocational skills, a new study has shown.

According to research by savings organisation NS&I, just 15 per cent of school leavers have had any kind of formal financial education. The majority of people – 87 per cent – believe that financial training should be taught, with more than 40 per cent saying it is the responsibility of teachers.

The statistics reveal a worrying trend for trainees, who may be focusing on their career development but lack the fiscal nous to effectively plan for their future.

NS&I’s research showed that many people struggle to manage their money on a day-to-day basis and for the long term. Of those, more than half (52 per cent) had not received any formal financial education but wish they had done.

 

Top three money-related topics to learn:

  1. Budgeting – 55 per cent
  2. The importance of saving – 33 per cent
  3. Planning and saving for retirement – 31 per cent

 

Advice from an industry expert would be most beneficial to youngsters, said 21 per cent of respondents.

Jill Waters, retail director at NS&I, said: “Our research illustrates millions of us may be struggling without a basic knowledge of money, savings and how to plan for different life stages. Getting a good understanding of personal finance will help people make more informed decisions.”