Financial literacy in the UK is still patchy at best, with too many young people left to figure money out by trial and error. IFA Magazine’s Deputy Editor, Jenny Hunter, believes that advisers have a unique opportunity to step into this gap, from volunteering in classrooms to reframing pensions as financial freedom and focusing on five practical essentials. In this article, Jenny investigates how, by engaging early, reframing money as a tool for independence rather than fear, and breaking the essentials down into something practical, advisers can help deliver real value to the younger generation.
If you ask most adults where they first learned about money, the answer is rarely “at school.” Budgeting, pensions, credit scores and investing simply aren’t part of most people’s formal education. Instead, many of us stumble through with trial and error, tips from parents (if we’re lucky) and the occasional hard lesson. The result? A generation of young people at risk of repeating the same financial mistakes of days gone by.
Whose job is financial education?
It’s no secret that financial education in UK schools is hit and miss. Personal finance is technically on the curriculum, but it’s often squeezed into lessons, left to overstretched teachers, or ignored altogether. That leaves many young people heading into adulthood with little more than a vague awareness of things like bank accounts and student loans.
As Vilma Marques, Outreach Programmes Manager at the CII and PFS, put it in a recent episode of IFA Talk: “I believe that there should be readily available financial literacy resources that cover relevant topics. We need good advice from trusted sources , whether it is from institutions such as us, from parents, carers, teachers or anyone with an impact on their lives, as well as guidance and above all, trust.”
The PFS Education Champions scheme is one way the industry is stepping up. Through this programme, financial advisers volunteer their time to deliver workshops in schools, charities and community groups, bringing money to life in a way that’s practical, engaging and, crucially, relevant.
The idea is simple: let young people hear directly from real professionals, not just textbooks. Students get to ask questions, see how financial concepts apply to real life, and even get a glimpse of careers in financial planning. As Vilma said, “The bonus of our members delivering the sessions means that students can get first-hand contact with professionals, as well as their experience and knowledge.”
So, whose responsibility is it? Government, schools, parents, all of them have a role. But advisers can make an immediate impact by also getting involved, whether that’s once a year or once a month. As Vilma reminded us, “It is a volunteering programme. People can commit as much time as they can. Whether that’s once a year or a couple of days a year, we are happy to work around our volunteers.”
It’s not all about pensions
When advisers do get the chance to talk to younger clients, pensions can sometimes dominate the agenda. And while pensions are important, for Gen Z and Millennials, they can feel far too abstract. Retirement at 65 (or later) is a lifetime away when you’re still juggling rent, student loans and the rising cost of living.
We need to remember that old people were once young, and therefore it’s trying to encourage those of the younger generation not to make the same mistakes, perhaps as those in their 50s. That means shifting the focus to tools that deliver more immediate wins.
Think emergency funds, because nothing undermines a savings plan faster than an unexpected bill. Think ISAs and LISAs (although the practicalities of LISAs these days are debatable), which can be framed around tangible goals like buying a home or funding travel. And think about how pensions are positioned. Instead of a far-off pot of money, why not describe them as “financial independence”? For a 25-year-old, that phrase paints a much clearer picture: the ability to choose what work looks like in your 50s or 60s, rather than being trapped by financial necessity.
The five essentials: what young savers really need
To turn good intentions into action, young people need more than abstract concepts. They need a practical, memorable framework that makes managing money feel achievable. From our experience and conversations with advisers, five essentials stand out: accountability, knowledge, structure, habits, and purpose.
Accountability
Money is personal, but accountability makes it real. For some, that’s a financial adviser. For others, it might be a friend or even a budgeting app that keeps them honest. The key is to create a system where goals can’t just be quietly forgotten.
Knowledge
Advisers can cut through the jargon and explain what actually matters: how interest works, why debt snowballs, and what risk really means in investing. Knowledge is power, but only if it’s digestible.
Structure
Without structure, money slips away. Advisers can help young clients build a simple roadmap: budget, emergency fund, medium-term savings, and long-term investments. Tools like cash flow modelling might sound overkill for a 22-year-old, so keep it simple to start with.
Habits
Habits beat willpower every time. Setting up a standing order for your monthly discretionary spending is a tiny action that builds long-term resilience. One of the huge benefits of workplace pensions, of course, is that money is taken day one from your pay before you have a chance to spend it. Replicating that logic across savings accounts and ISAs can be transformative.
Purpose
Finally, purpose. Why are they saving? A deposit for a flat? The freedom to take a career break? A more comfortable retirement than their parents? Advisers who connect money to purpose unlock motivation that spreadsheets alone never will.
Bringing it all together
The five essentials aren’t just theory; they’re a ready-made checklist advisers can use in conversations. Imagine sitting down with a young client and asking:
- Who are you accountable to?
- Do you understand how your money works?
- What structure have you built around your finances?
- What habits support your goals?
- And, most importantly, what’s your purpose?
Suddenly, the conversation shifts from products to people, from compliance boxes to real lives. And that’s where advisers can deliver the kind of value no app or TikTok influencer can replicate.
Financial education in the UK may still have a long way to go, but advisers don’t have to wait for the government to fix it. For advisers, the takeaway is simple. Don’t wait until clients are in their 40s to talk about retirement. Don’t assume young people aren’t interested in money. And don’t underestimate the difference a single conversation can make.
If we want a financially literate, empowered generation, the time to start is now. And advisers are perfectly placed to lead the charge.
About Jenny Hunter
Jenny Hunter is a Deputy Editor at IFA Magazine. Qualified as a Paraplanner and Chartered Financial Planner herself, her perspective and insight into the business of advice is based on her personal experience working in the profession since 2013.
