Children and Young People living in low-income households and their financial education

This qualitative research also sheds light on how financial education interventions could best meet the needs of these young people, by centring the voices of children and young people, their families and practitioners who work with similar groups in community settings.

Findings from our 2022 Children and Young People’s Financial Wellbeing Survey highlighted that children and young people living in low-income households are significantly less likely to have the foundations of good financial wellbeing, compared to their peers in higher-income households.

We conducted further research in order to contextualise this finding and to better understand:

• the experiences of children and young people in low-income households in relation to money
• how to best support the development of their financial capability and where there are opportunities and barriers for their financial education
• what young people, parents and practitioners working with them think are key touchpoints for financial education interventions and how these interventions might best meet their needs.

This research aligns with MaPS Strategic Plan 2025-28, which sets out our commitment to ensure that our services are available to those most in need.

Researching how to support both parents/carers and their children also helps to break the cycle of financial hardship being exacerbated by low financial capability.

• Complex relationships with money: Young people’s learning is shaped largely through the circumstances of their household and through informal experiences (pocket money, chores, part-time jobs), but they often lack structured financial education. 
• Single parent families and those with health conditions struggled most: CYP from single parent families, or with a parent in poor health, often faced greater financial pressures and showed heightened sensitivity to money. 
• Confidence gaps: Many understand basic concepts like saving and spending but feel less confident about topics such as credit, digital money management and long-term planning. 
• Desire to learn: CYP aspire to feel financially confident, but many were frustrated by the perceived lack of financial education in schools.  
• Digital vs. cash: Preferences varied amongst individual young people, depending on the accessibility and familiarity of digital money. Generally, digital money is more common in urban areas and amongst older young people, while cash remains important in rural settings and for younger children. 
• Saving habits: Ranged from ad hoc to structured, with some using tools like budget binders and savings jars. Peer pressure, everyday temptations and social media often made saving more difficult.

• Financial insecurity: Many parents in low-income households manage money instinctively, week-to-week, with limited formal support. However, they were keen to ensure their children kept up with their peers and did not miss out. 
• Strong aspirations: Parents want to break the cycle of financial struggle and raise financially capable children, believing financial education should start as early as age five or six. 
• Confidence gaps: Parents are comfortable teaching budgeting and saving, but less confident with more complex topics such as credit, debt and investments. 
• ‘Digital detachment’: Parents showed concern about the impact of digital money on learning, feeling that this can make money ‘invisible’. 
• Support needs: Parents seek age-appropriate resources and trusted guidance to help them start having money conversations at home. 

• Low financial literacy observed: Practitioners felt CYP often lack basic financial skills and knowledge - not due to ability, but missed opportunities.
• Barriers: ‘Digital detachment’, misinformation online and limited exposure to money skills at home and school were seen as barriers to financial education. 
• Impact of home environment: Practitioners felt that families’ concern with immediate needs, and/or a desire to shield their children from stress or difficulty, was preventing them from having conversations about money.
• Trusted relationships matter: Informal settings like youth clubs and community drop-ins offer valuable opportunities for financial education.
• Support needed: Practitioners want practical, youth-relevant resources and flexible training to help them deliver financial education effectively.

Our research aims to inform and influence the development of policy and targeting of funding and delivery. It provides insight into the experiences of children and young people living in low-income households and how these circumstances might impact their financial capability and subsequently, the design of financial education interventions aimed at them. 

MaPS will use these findings to support key stakeholders to develop relevant and quality financial education provision for CYP in low-income households and their families. We are particularly keen to explore ways that MaPS and other organisations can support the needs of practitioners working directly with children and young people, enabling them to develop the CYP’s financial capability. 

We would like to explore how we can do this through our own services and others, whilst also using these findings to enhance MaPS’ existing work supporting parents/carers to have money conversations at home.