The UK has a financial education issue

In a recent survey commissioned by the Financial Times, 90% of people in England admitted to learning ‘nothing at all’ or ‘not very much’ about finance during their education. The World Bank also estimates that one in three in the UK are considered financially illiterate. But hey, a least we know Pythagoras Theorem, right??

The government, through the Money and Pensions Service has highlighted the issue with the lack of financial education in children aged 7-17. They have implemented a plan known as the UK Strategy for Financial Wellbeing which aims to have 6.8m children financial educated by 2030. However, that doesn’t solve the problem with adults who have left school and are now in the workplace.?

With the uncertainty in the economy and the slow recovery from Covid-19, those who have little to no financial education will often be the easy targets. Loans, credit cards and overdrafts look incredibly attractive with a variety of enticing offers; ‘Interest Free’ ‘No Balance Transfers for six months’ ‘￡500 cashback’. But what do these mean? And what is this pesky APR that they all mention in incredibly small font at the bottom of the advertisements??

Without a sound financial education, the headlines become more attractive and the desperate need to pay that urgent bill or buy the weekly groceries seems to be alleviated by the fancy new credit card or the simple loan application with the money appearing in the account in 90 seconds! Except, once the groceries are bought and the bills are paid, the credit card or loan now needs to be addressed, but with no money to pay them off, the debt increases and the spiral into debt begins. Hastee’s own research showed that in 2021 63% of workers took high cost credit knowing they couldn’t afford to pay it back and in January 2022, the Citizens Advice Bureau dealt with 1,970 debt issues in England and Wales.

How can Hastee help?

Hastee has an exclusive partnership with financial wellbeing and education platform, nudge. Nudge allows users to access personalised, independent financial advice and education through the Hastee?app. This exclusive partnership is free for all Hastee users. Through nudge, users can gain insight into the financial world and understand how decisions may affect their finances helping to increase financial literacy in adults.

Hastee through the Hastee app, allows employees to access a portion of their earned wage after they have worked a shift without waiting until pay day, alleviating the need for payday loans or credit cards. Alongside the education from nudge, Hastee allows workers to increase their financial wellbeing and financial education. With greater wellbeing and education, employees will be more empowered to make more informed decisions regarding their finances.

If you would like to find out more about Hastee please contact us at [email protected]