Some children and young people are at greater risk of having poor financial capability, with long-term implications for their wellbeing as they gain independence. Local authorities and other service providers have an important role to play in supporting these children and young people to develop the money skills they need.
The experiences children and young people have growing up, and what they learn about money, have a significant effect on their chances of having good financial capability in later life. This means that work with children and young people today could help them, in the future, to make the most of their money, plan ahead and avoid getting into problem debt or experiencing financial exploitation.
Some children are more likely to have poor financial capability, such as children growing up in an over-indebted household and those who are disabled. Some children may require specific and targeted financial education, due to their circumstances. For example, children in care and care leavers or young carers may need to develop money skills earlier than their peers. While parents can be the main source of financial education for their children, not all young people will get the support they need at home. Similarly, children and young people disengaged from learning may not have the opportunity to gain money skills at school or college.
Therefore, those working with vulnerable children and young people and their families – including local authorities, youth services, family support and other community services – have an important role to play.
Activity to develop children and young people’s financial capability can be incorporated into the work you are already doing with children and young people. Support is most likely to be effective where there is a trusted relationship and frequent contact. So embedding financial education into your existing activities – such as work carried out by social workers, family support workers, parenting practitioners and youth workers – could make a positive difference.
Local authorities and other service providers could:
Measure the results of your financial education so that you can improve and refine it, using our Evaluation Toolkit and outcomes frameworks for children and young people and parentsopens in new window.