Stepping out from their guardian’s wings and realizing they didn’t quite know how much money and responsibility it takes to be independent. The survey’s results have flagged up concern as the lack of knowledge affects people as young as 16.
Money Advice Service backed this claim as they commissioned a survey of nearly 5,000 people. Teenagers aged 16 to 17 were the main concern as they were just a few months away from having access to their credit that affects them for years.
Specifically, it highlighted that a third of the age group didn’t know the penalties of leaving council tax unpaid and two thirds had no idea how to read a pay slip.
The service is calling for "just-in-time" financial education, before young adults become financially independent, alongside more consistent financial education from primary school age, and greater support for parents to talk to their children about money
However, Parents are warned to make sure they are setting the right example as half the guardians questioned in the survey said they did not save regularly and 44% said they did not feel confident managing their money.
The Advice service has released multiple websites online with advice to make sure that young people are prepared and don’t fall into bad habits.