Money advice and young people

Lit review report for MaPS 2021

The full report provides a detailed methodology and an extensive bibliography if you’d like to read more on this topic.

Graham, B., & Brady, L-M., ( 2021) Young people and money: a review of young people’s use of online information and advice, MaPS, London.

This comprehensive literature review found that, and possibly contrary to expectations, the internet and social media do not provide the information young people are looking for when it comes to financial matters, often cause more confusion than enlightenment and is not their first port of call.

Available research shows that young people tend to use generalist search terms and engines, are largely unaware of specialist sites, and find it hard to judge what to trust out of the voluminous online information. These challenges are compounded by the commercial interests behind much of the available online ‘advice’.

Young people are most likely to turn to friends, families and trusted professionals, such as teachers, for money advice, signalling the need for trustworthy and individualised guidance. However, quality and reliability depends on the other person’s knowledge and experience. Unfortunately teachers and other adults were reported to lack confidence or training to provide sufficient support on financial matters.

Recommendations include better financial capacity building for families, children, young people and those who work with them (e.g. teachers and youth workers); and free, easily accessible, impartial, high quality, personalised advice – as and when needed. In other words, it can’t be presumed that all financial education can be delivered in one go, at 12 or 20 (even if feasible). Young people want appropriate advice when they hit key junctures in their lives, especially points of transition, such as starting a job, taking on a tenancy, getting credit/ into debt, becoming a parent, etc