Young adults are those who have left compulsory education or other statutory settings, such as care. They are transitioning towards independent living and financial independence, beginning between the ages of 16 to 18 and continuing to their mid-20s.
Research suggests that young adults typically display lower levels of financial capability than older age groups.
Online and offline support does exist to help them, but many providers report that they struggle to engage them on day-to-day money management, including on sensible credit use, or on important financial decisions that will have an impact on their future wellbeing.
Young adults in the coming years will face major changes to the policy, economic and social landscape in which they have to manage their money day-to-day and take important financial decisions about their future. These will affect young adults from many walks of life, yet is likely to have a disproportionate impact on those who come from more marginalised backgrounds.
A key aim of the Strategy will be to listen to and understand more fully the differing capabilities of, or barriers faced by, young adults in order to enable more effective, sustainable and engaging financial capability approaches to be developed to help them.
In devising approaches to trial and measure, the Strategy will focus on three interlinked areas:
- welfare reform;
- changes to further and higher education funding; and
- developments in the jobs market, such as an increase in apprenticeships
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