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FSA/PN/067/2005
21 June 2005

The Financial Services Authority (FSA) has today published a case study guide on how to help young adults (16-25 year olds) become more confident with money. The guide "Helping Young Adults become Financially Capable" brings together for the first time examples of current work in practice.

The guide includes case studies from across the UK and shows various methods and ways to engage and educate 16-25 year olds about their finances. The case studies reflect three sectors; Further Education, Higher Education and "Not in Education, Employment or Training" which includes young adults that are homeless, at risk and ex-offenders.

The guide is the first output from the Young Adult Working Group, part of the National Strategy for Financial Capability*. The working group, chaired by Trevor Phillips, Chair of the Commission for Racial Equality, aims to find the best ways of reaching young adults, recognising their different needs and circumstances, in order to help them face personal finance issues, sometimes for the first time.

Trevor Phillips, Chair of the Young Adults Working Group, said:

"Young people are a priority for action. We recognise that the transition to adulthood is a key stage in people's lives. They are taking on responsibility for their finances for the first time, being offered credit, and getting their first job. They may also have to pay for their accommodation and education. As found in these case studies, many have a low base of understanding of the simplest budgeting, for example.

"These case studies show we are not starting from scratch. Valuable work is going on across the country and there are pockets of huge enthusiasm to help young people understand their finances better. Working with partners is proving successful, and I'm delighted with the commitment that so many have shown to get us to this stage.

"I am genuinely excited about taking this work forward."

Alongside the guide, the FSA also commissioned research into what young adults need to know about personal finance and ways to engage them. The full research report will be available from our website in July 2005. A preliminary finding of the research confirmed that young adults do not feel the need to be bothered with financial 'things' until they are older and tend to look for financial information only when they have specific needs e.g. buying a car or going on holiday.

The FSA is also sponsoring pilot work with five leading organisations to develop innovative new approaches to improve financial capability in young adults. These are beginning to show results and in early 2006 the working group will publish a plan for young adults based on all our findings.

Anna Bradley, FSA Consumer Sector Leader, said:

"The case study guide and research are a good foundation on which to build our plans for young adults.

"This guide will serve as a directory of ideas and resources for those wanting to engage young adults in learning about how to deal with their money and encourage those already involved in building financial know-how among 16-25 year olds."

The Guide is currently available from our website.

 

* The Young Adults project is one of seven identified by the National Strategy for Financial Capability which was launched in November 2003. The aim of the strategy is to help people of all ages to access the education, information and advice they need to make financial decisions with confidence. The other work streams are Schools, Families, Workplace, Retirement, Borrowing and Generic Advice. More information can be found on the Financial Capability web pages.

Notes to editors

1. The full Guide can be accessed here - Helping young adults become financially capable [ PDF ]
2. The objective of the Young Adult Working Group is to increase financial capability amongst 16-25 year olds. More information on its members, terms of reference and progress report can be found on the financial capability web pages under Young adults.
3. 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.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.