Be. Partners Ltd
Financial wellbeing starts young
Financial wellbeing is a hot topic now recognised as a public policy issue, not simply a matter of personal responsibility. The UK’s renewed focus on financial education – including plans to build it more fi rmly into school curricula from 2028 – is therefore welcome. But it also raises a question: how do we make sure fi nancial education is done well? In recent years we have moved away from traditional
ideas of fi nancial wellbeing and now appreciate that it is always subjective. We defi ne it for ourselves through how money relates to our own values, how we relate to fi nancial matters, and how this relationship aff ects our overall well- being. By building strong foundations at a young age, we can help the next generation manage both their fi nancial and overall wellbeing much better. T at translates into better outcomes for individuals, communities and the wider economy. For too long, the default approach has been ‘fi nancial
literacy’: teaching young people concepts and terminol- ogy, and assuming that knowledge translates into better decisions. T e evidence from behavioural economics and fi nancial psychology suggests a more complicated reality. People often know what they should do, but still struggle to do it – particularly under stress when money is tight. T at is why the real goal of fi nancial education should not be a list of facts, but the capability and confi dence to engage with money when it matters most.
Financial literacy to self-effi cacy To deliver fi nancial education that will have a positive impact and lead to good outcomes - fi nancial and overall wellbeing – we need to focus on the skills and mindsets that support greater self-effi cacy, a belief that we can successfully engage with fi nancial matters even when they become more diffi cult to manage. Without the psychological skills that underwrite self-
effi cacy, the ability to engage with fi nancial information for a positive outcome is limited. Knowledge alone is not enough if a young person lacks the confi dence to apply it or avoids money decisions altogether. Money is emotional, bound up with identity, status, security and belonging. It can trigger avoidance, shame, denial and short-term thinking – often driving the worst outcomes. Building fi nancial self-effi cacy is the diff erence between
a teenager being able to defi ne ‘interest’ and being able to make a calm decision when their bank balance is lower than expected. When we empower young people to develop these skills at the right ages, we give them the best possible opportunity to achieve their own fi nancial wellbeing.
Adrian Pryce DL
Chair Be. Partners Ltd
Teach what’s relevant, at the right time A common mistake in fi nancial education is teaching content that is technically correct but psychologically irrelevant. Teaching a 15-year-old about a mortgage is counterproductive when they are unlikely to engage with that decision for a decade or longer. Timing and relevance should be at the heart of any fi nancial education programme. What we can do, instead, is help that 15-year- old build the confidence to engage with that kind of situation when the time comes. Programmes must take account of cognitive abilities at
each age and use engaging and fun ways of teaching that progress learning year by year. It is essential programmes are age-appropriate, inclusive, and build capabilities such as: ■ decision-making and problem-solving under uncertainty ■ recognising ‘spending triggers’ and marketing pressures ■ confi dence to ask for help early, rather than avoid or hide problems
Measure what matters Financial education must be properly measured for eff ectiveness over the short and long term. Given the high value we place on children’s wellbeing now and in the future, it is important that we measure, assess and evolve programmes, with a clear eye on outcomes. T ose outcomes should always focus on how fi nancial
Cameron Waldron Lead Consultant - Financial Psychology The Financial Wellbeing Lab
education enhances an individual’s financial and overall wellbeing, as they perceive it to be. Teaching complementary skills such as fi nancial mindfulness and defusion techniques can help young people defi ne their relationship with money and the value it has in their life – reducing anxiety and increasing agency. These are challenging tasks, but they will enable
financial education to move past traditional methods that have failed. T e real prize is producing young adults who feel capable, calm and in control when money gets complicated – because sooner or later, it always does!
For more information, contact Adrian Pryce at
adrian@bepartners.org or fi nd out more at
https://www.thefi
nancialwellbeinglab.com/
EDUCATION
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