A new study from KidsKnowBest, the global leader in understanding and reaching kids, reveals a generation grappling with financial anxiety and a pressing need for real-world financial literacy.
The report identifies a crucial gap in financial education and also challenges financial brands to build meaningful connections with families, ultimately securing future customer loyalty.
The report titled “Money Talks: Kids, Cash and the New Financial Mindset” report, based on a two-phased investigation including a quantitative survey of 1,000 children and in-depth qualitative interviews.
It reveals that nearly half (46%) children are worried about money and their future and one in four children (24%) are explicitly anxious about basic needs.
More than half (55%) of respondents revealed their happiness is impacted by money. 38% say money causes them stress with 50% feeling pressure to save.
Despite this early stress, the research uncovers a strong desire for genuine, real-world financial literacy. 60% believe they understand money, a candid one in three (33%) admit they don’t know what to do with it.
Money advice gap with current sources lacking
Parents remain the main source of money advice, according to 88% of respondents. Only 42% think their parents are great with money, highlighting the need for better financial literacy across all ages.
Despite the desire for better information, only 45% agree it is easy to find good advice on money. Just 11% strongly agree. Meanwhile 47% of 7-14 year olds have turned to the internet for money advice but only 41% trust money advice online. 26% have bought something online without informing their parents.
Crucially, formal education sources are failing to bridge the knowledge gap. 55% feel schools don’t teach enough. 20% say they don’t learn about money at all. Only 19% feel they’ve learned ‘a lot’ in school.
Preference for real life money lessons over influencers
When asked about where they would like to learn more about money, 87% express a clear preference for ‘real-life’ money lessons over digital sources. 63% would like to learn more from parents, 47% from schools. Despite the prevalence of screens and digital influence, just 20% want to learn more from social media apps and only 14% want to learn more from influencers.
The research also reveals that financial activity is beginning at an early age. Children are engaging in financial activities, earning pocket money though doing chores, but also selling goods, and navigating digital economies, but often without the foundational knowledge. While 44% still use a Piggy Bank, 36% now use online banking apps.
In response to the findings, KidsKnowBest is urging financial brands to respond and develop practical financial education initiatives tailored to the needs and anxieties of the UK’s youth. The preliminary findings were discussed at SXSW London with views from an expert panel including Sarah Wiggins, Vice Chair, Global Banking at HSBC and Ann Pettifor, British economist at Prime Economics, quoted below.
Opportunity for financial brands to plug the knowledge gap
According to Joel Silverman, CEO of KidsKnowBest: “The care-free childhood many adults will have enjoyed is now a distant memory. Our comprehensive research shows that children can’t be divorced from the anxieties their parents may be feeling in a world of financial insecurity, and continuing cost of living pressures. Yet, critically, this anxiety isn’t shutting them down. Instead, it’s sparking a deep curiosity and a hunger for practical, human-led learning about money.”
He continued: “This is a critical opportunity for financial brands to step forward. By providing accessible, relevant, and practical financial education, they can empower this generation, transforming their anxiety into informed agency and benefit from future brand loyalty.”
Sarah Wiggins, former Vice Chair, Global Banking at HSBC said: “This research highlights how vital it is to develop strong financial habits early. We need more education and support for both children and parents, and we must start young. Without building that muscle early on, it becomes much harder to catch up later.”
Ann Pettifor, British economist at Prime Economics said: “Financial institutions have a key role to play in educating future generations. They must be more transparent about how money works, and the education system should be doing more too. A better understanding of money can empower young people to take control of their futures.”
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