Context
‘Financial Foundations’ is one of five national goals set out in the Money and Pensions Service’s (MaPS) UK Strategy for Financial Wellbeing 2020 to 2030. The goal states that two million more children and young people (ages 5 to 17) should receive a meaningful financial education by 2030. The goal is measured in surveys commissioned by MaPS, based on the percentage of children reporting that they recall receiving financial education at school they considered useful, and/or their parents give them regular money (or they receive money from working), set rules about money and give them responsibility for spending decisions. MaPS was keen to understand early evidence on how progress towards the goal may have been impacted by the Covid-19 pandemic, particularly in view of the impact of the pandemic on wider provision of children’s education.
The study
The report describes the results of a rapid literature review, conducted in late December 2020 and January 2021. Literature was identified using keyword-based Internet searches and a search of the academic database, JSTOR. Most of the literature identified for the review was grey (non-academic) literature, including official reports.
The purpose of the review was to highlight emerging evidence of the likely impacts of the COVID-19 pandemic on the ‘Financial Foundations’ goal. It considers the impact of the pandemic on: household finances; education generally for learners of all ages; financial education; and on learners with vulnerabilities (defined as those with special educational needs or who are disabled (SEND), children living in stressed households or at risk of violence, members of minority ethnic groups, young carers, those identifying as LGBTQ+, pupils qualifying for free school meals, Travellers, migrants, those from materially deprived households, and those with mental or physical health challenges).
Key findings
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Scope of the available literature: Financial education is rarely mentioned in the published literature to date on the educational impact of COVID-19. The focus has been on other subjects, particularly core subjects, and even where financial education sits officially within other subjects, the research which addressed those subjects did not highlight financial education specifically – with only one exception.
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Impacts on household finances: While a small majority of households saw no change to their incomes, around 10% had increases in income while 30% had moderate- or severe-income falls. Many negatively-impacted households saw (and expected to see) multiple negative income events. Financial distress was concentrated among lower income groups and especially non-graduates, women, parent households, people from minority ethnic communities, young people and renters. Financial pressures may impact the ability of parents to support their children’s’ financial education.
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Impacts on education: Schools were under pressure to provide in-school and distance learning simultaneously, and pupils without adequate internet, electronic devices or space at home were less able to participate equally in education. A weaker labour market affected transitions to work for 16-17 year-olds.
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Impacts on financial education: Only one report considered financial education, a NFER study which looked at the impact of school closures in 2020 on maths achievement in children aged 5 to 7. It found that children continued to struggled with money-related topics, as they had done in 2017.
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Impacts on vulnerable children: The pandemic has increased the challenges for children in vulnerable situations, including children with special educational needs or who are disabled (SEND), those at risk of violence and those with poorer mental or physical health. Parents and children from ethnic minority backgrounds have been affected particularly negatively by the pandemic.
Points to consider
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Methodological strengths/weaknesses: Although the authors report describe using a rapid evidence approach to their review, few details about their methodology are given to be able to assess its reliability. A rapid evidence assessment will, by definition, be less reliable than a full, systematic review would be.
- The report provides an early review of the impact of the Covid-19 pandemic, and the authors note that peer-reviewed academic articles were poorly represented in the literature at that stage. It is unclear if the authors searched preprint services to help compensate for this. The review should not be considered to be a complete review as a result of this.
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Applicability: The limited evidence available for the review means that some of the report’s conclusions are sometimes necessarily speculative in nature.
