Providing children with access to financial education could reduce UK unemployment, drive business innovation and help people retire with more in their pockets, a new study from GoHenry reveals.
Kids who were taught money lessons are earning more as adults, according to new analysis commissioned by GoHenry, the prepaid Visa debit card and financial learning app for kids aged six to 18.
Conducted in partnership with Censuswide and Development Economics, the study also identified that if adults had the opportunity to receive financial education when they were school age, the boost to annual business formation in the UK could amount to an additional 76,400 businesses each year. This would result in an annual increase of 123,000 direct jobs which could reduce unemployment in the UK by more than eight per cent.
In addition, prioritising financial education will inject an extra £6.98billion into the UK economy each year. That amounts to £200billion by 2050.
Other findings from GoHenry’s research includes:
- Of those currently unemployed and actively seeking work, 41 per cent didn’t receive any financial education
- Forty-six per cent of those who didn’t receive any financial education as a child are earning £15,000 or less annually
- Of those earning between £55,001-£65,000, 77 per cent received some level of financial education
- Kids who receive financial education will be £70,000 richer in retirement
GoHenry‘s research coincides with the launch of its new in-app, gamified financial education lessons ‘Money Missions’. Designed to make learning about money a fun and interactive experience for kids and teens, the lessons have been developed with both teachers and financial education experts, including UK charity MyBnk. Each lesson links to national financial education guidelines.
Louise Hill, co-founder and COO of GoHenry said: “These findings clearly demonstrate the positive impact that financial education has on individuals, businesses and the wider UK economy. The Autumn Budget neglected to recognise the importance of financial education for young people, despite the fact that poor numeracy can cost individuals up to £1,600 a year in lost earnings as an adult.
“It is vital that we teach these essential life skills much earlier to bridge the financial capability gap that is costing the UK billions every year.”
While, Stephen Lucas, economist at Development Economics, added: “The opportunity to receive financial education clearly has powerful benefits for children later on in life. To me, the most important impact on the economy is the link between financial education and future attitudes towards starting a business.
“Around half of all job creation in the UK is driven by startup and early growth stage businesses, so anything that has the potential to boost start-up rates has the potential to generate powerful effects on future levels of employment and wealth creation.”