We’re committed to tackling the cost of living crisis in the UK

We’ve all seen it in the news… the cost of living is rising across the UK and the impact on young people is worrying. We’ve teamed up with our new charity partner MyBnk — who help young people to take control of their finances — to better understand what the financial world means for young adults right now.

Here’s what they’re thinking…

With fuel costs set to hit all-time highs, the coming months are almost certainly going to be a challenge for many people. And while all sectors of society are going to be affected by rising living costs, young people will be particularly hard hit.

Almost 50% of young people have what we call ‘low financial resilience’ which means they are unable to absorb the shock of a random bill or unexpected expense. In addition to this, 84% of young people have received no financial education at all, an increase of 17% since the pandemic. This means that a whole generation of 18-year olds are entering independent living without all the information and skills they need to successfully live alone. Combine all of this with an unprecedented global living costs crisis and we have the potential for a disaster amongst a large proportion of our society.

At MyBnk, we’re working hard to reverse this trend and build a society of well-informed, financially aware young people who are able to navigate all the systems they need to stay safe and well, no matter what their other challenges might be. We believe that a well-informed young person makes better financial choices, better understands their responsibilities and generally engages more with their money issues instead of burying their head in the sand.

We bring the world of money to life — through engaging materials, expert trainers and programmes of work tailored to all age ranges, we start to encourage people to talk about their money — breaking the taboo that you shouldn’t speak about money with strangers and therefore modelling that asking for help from creditors, or other advisory services, is normal and ok.

We make sure our work is relevant to the learners at the life stage they’re at, and that we’re clear and understood by young people when exploring complex topics such as taxation or the pros and cons of borrowing.

But we all have a collective responsibility to understand the challenges young people are facing as they begin to enter independence. Opening money conversations with young people means that they are more likely to ask for help when they need it — whether it’s because they don’t understand what they’re hearing in the news, or because they have made a money mistake and need some support.

Together with Compare the Market, we will start to break down barriers for young people, helping them to understand the current news and what a cost of living and energy crisis may mean for them.

The media is full of negative stories about how much today’s situation will hurt pockets up and down the country — and whilst this is true, we believe that early intervention, along with the right approach, can help our learners to be more confident about their situation and the challenges they face, preparing them for the turbulent road ahead as we face economic uncertainty.

So, what can you do?

– Book money management programmes for your young people. Our young adult money workshops The Money House and Money Works focus heavily on bills and living costs to help 16–25 year olds transition into independence. Available virtually and in-person. You can request sessions here.

– Signpost young people to our free resources: We have a dedicated website section aimed at 16–25 year olds. We’ve also just launched season two of our online webcast, focused on the energy crisis.

– Start the conversation! Talking money is essential to break the taboo around the topic and encourage young people to seek help for financial issues. Tackling the topic at home or with the young people you work with is a great way to build their confidence and encourage further conversations.

Compare the Market are partnering with MyBnk to make great financial decision making a breeze for the next generation. The partnership will reach 70,000 young people across the UK with expert-led financial education.

Take a look at this video to find out more about our work together.

Young people receiving financial education

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