Author: Colin St John, Group Chairman
A call to policymakers, banks and employers to close the guidance gap
We’re building a society that celebrates earning power.
Promotions, salary milestones and income potential are openly discussed. But the discipline, context and capability required to manage that income rarely receives the same attention.
Young people enter the workforce brimming with ambition and creativity, but without the financial foundations needed for long‑term stability. For many, it can feel like Pennies From Heaven, money appears from everywhere but the skills to steward it never did.
The gaps are well‑documented:
67% of young people report low financial capability, with only 19% able to answer core questions on interest, inflation and risk, and just 3% answering all five capability questions correctly.
Schools remain a weak source of financial learning. Only 9% of teenagers cite school as their main source of financial understanding, and just 2% cite banks.
30% of UK consumers go overdrawn each month, with overdraft reliance highest among younger adults.
Students graduating in England now carry an average of £53,000 in student loan debt.
Gen Z face structural barriers to saving. Such as high housing costs, insecure work patterns and student debt all reduce their ability to contribute meaningfully to pensions.
We are, quite literally, creating a generation that knows how to earn , but not how to manage money.
Why are we still leaving financial capability to chance?
It seems extraordinary that in 2026:
Anyone can open a bank account without demonstrating even the most basic financial understanding.
Employers routinely deposit wages into accounts without knowing whether a young employee has the capability to budget, save or avoid debt traps.
We have starter homes to help people enter the housing market, yet no equivalent starter accounts to help them enter the financial system safely.
This is not a young‑people problem. This is a system design problem.
A Money Licence: a simple, structural fix
Policymakers, banks and employers could close this gap by introducing a Money Licence. A basic, nationally recognised standard of financial capability.
Not an exam. Not a barrier. A foundation.
A Money Licence could be integrated into:
A school leaving certificate
A bank account onboarding process
A workplace induction programme
Given that financial attitudes are formed by age seven and capability remains low into adolescence, early and consistent intervention is essential.
If we require licences to drive cars, sell food or operate machinery, why do we not require any proof of competence before someone is allowed to assume responsibility for their financial life?
Starter Accounts: a practical innovation for banks
Banks could go further by offering Starter Accounts, that are accounts designed for financial beginners with preferential interest rates to encourage and develop good money habits.
These accounts could:
Automatically split wage deposits into separate pots for bills, savings, pensions and spending
Provide built‑in nudges and guidance
Offer simplified dashboards prioritising clarity over complexity
Include optional “guided mode” features for the first 12–24 months
Financial services already deliver large‑scale education programmes, reaching 4.1 million young people in 2023 but product design has not yet caught up.
We design products for first‑time buyers, first‑time drivers and first‑time parents.
Why not first‑time earners?
Employers: the new frontline of financial capability
Employers are now one of the most trusted sources of financial guidance. They have a unique opportunity, and arguably a responsibility to support young workers by:
Embedding financial onboarding into induction
Offering simple, practical learning modules
Helping employees understand payslips, tax, credit, debt and pensions
Providing access to trusted tools and guidance, not noise or sales pitches
With gig work, portfolio careers and insecure employment rising, many young workers fall outside traditional pension structures. Automatic enrolment helps, but minimum contributions remain inadequate for long‑term security.
Financial capability is no longer a “nice to have”.
It’s part of workforce infrastructure.
Policymakers: set the standard
Government can close the guidance gap by:
Mandating a minimum financial capability standard for school leavers
Incentivising banks to offer Starter Accounts
Supporting employers to integrate financial education into onboarding
Ensuring young people are protected from predatory financial products
Strengthening the national curriculum , a move already supported by evidence showing 80% of teenagers want more financial education.
This is not about adding complexity. It’s about adding consistency.
The solution requires commitment, not complexity
Early education: Teach budgeting, credit, saving and investing before people earn.
Workplace learning: Treat employers as the new classroom.
Trusted guidance: Replace noise with clarity.
Digital literacy: Help young people separate financial fact from financial fiction.
Product design: Build accounts that support capability, not assume it.
Earning is only half the story.
Managing money is the skill that compounds.