From iPods to ISAs - Young Adults Financial Capability Showcase Event
Briefing Note BN015/06
8 March 2006
Today's event, 'From iPods to ISAs', showcased the innovative work that has been done through the FSA's Young Adults Working Group (YAWG) and launched its strategy document for national implementation in 2006-07, 'Helping Young People Make Sense of Money'.
Below are links to the speeches given by John Tiner, FSA Chief Executive and Trevor Philips, Chair of the Commission for Racial Equality, at the event today to encourage those working with young people to incorporate basic financial capability as part of their services.
Background
The Young Adult Working Group is part of the National Strategy for Financial Capability and aims to help young people take control of their money and therefore take control of their life. It has brought together key people and organisations from government, the financial industry, the educational world, consumer and voluntary sectors.
The issue informed by recent research on young people's attitude to money
- 29% of 16-24 year olds said they would not know how to prepare and manage a weekly budget;
- 19% of 22-24 year olds have short-term debts over £5,000;
- 62% of young people said if they got into money trouble or debt they would not be able to name any advice or support services they could turn to for advice
- One in five students dropped out of courses;
- Of undergraduates who considered dropping out financial difficulty was a strong factor for 34.4%;
- 94% of 16 year olds believe it is important to know how to manage money, but only 53% have been taught how to;
- Poor financial literacy is estimated to cost UK plc 2% of its GDP.
The YAWG vision is that by 2008:
- All major organisations providing services to young people communicate some basic financial capability pointers and messages to their clients;
- These organisations can easily access high quality training and materials to help them, and;
- They use creative and proactive means to overcome the barriers of communicating with young people about their money.
We can achieve this by encouraging relevant organisations to get involved especially:
Higher Education Institutions
- Comparing the menu of proactive approaches used at Roehampton University with their own, and working as an "early developer" using the toolkit and helping to build a full good practice model for the UK by 2007.
- Join the YAWG network to share good practice.
Government and charitable/voluntary sector agencies working with (Not in education, employment or training) NEET young people
- Review their training provision for staff and assess if short-term financial capability training would help to meet their clients’ needs?
- Contact the YAWG for advice and pointers to quality training provision and materials.
Financial sector and advice providers
- Work to build new local partnerships and networks.
- Help in exploring the business case for nationally coordinated telephone and web-based information for young people.
The Event was held today aboard HMS President, moored at the Victoria Embankment, London.
Speeches
Speech by Trevor Philips [PDF]
Notes
- The Young Adults Working Group is part of a national strategy for financial capability led by the FSA, which has brought together key people and organisations from government, the financial industry, the educational world and the consumer and voluntary sector. Helping consumers become more capable and confident is the aim of the National Strategy for Financial Capability launched in November 2003. More information on the strategy as well as the latest progress report can be found on the Financial Capability website.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal, and improve its business capability and effectiveness.
