Understanding the financial capability needs and lived experiences of Black teenagers

Introduction

The academic and professional literature suggests that being from an ethnic minority, and having a disadvantaged or vulnerable background, is negatively linked to a range of financial capability indicators and outcomes. This negative link is particularly acute for people from Black and low-income or other disadvantaged family backgrounds.

Mandatory financial education in schools may help narrow the gap between children with a vulnerability and those without one. However, the 2018 MaPS’ Vulnerability Deep Dive report suggests that, although financial education in schools is positively linked to financial capability overall, for children with vulnerabilities, it is not sufficient to bridge the gap between children with a vulnerability and those without one.

Differences in opportunities and income levels for people from Black and disadvantaged backgrounds may explain at least some of the differences in financial outcomes. However, there is far less evidence to explain negative links to financial capability indicators, and why financial education appears not to lessen, and may even widen, this gap. One theory is that people from Black and disadvantaged backgrounds have distinctly different lived experiences, which could lead to them having different financial capabilities. As financial education has largely been designed to provide the broad majority of students with the financial skills relevant to them, it might be less relevant for those with different lived experiences and needs.

Financial education is, to a large extent, about providing people with the skills to make sound financial decisions and avoid getting into financial difficulties, as once someone has fallen into difficulties it usually requires more acute support than education could provide. It is, therefore, important to understand more fully the financial capability of older teenagers from groups at higher risk of financial difficulties, who are about to transition to independent living and who will require new financial skills.

Understanding the specific needs of those from diverse backgrounds, particularly those in groups who are at higher risk of financial difficulties later in life, will help to inform the debate on effective financial education that provides the tools relevant to students with diverse backgrounds. Our research contributes to this area by employing interviews with Black teenagers to deepen our understanding of issues impacting the financial capability of this group of students.

Brief overview of the Literature

Walker et al. (2018) reviews the literature on the financial capability of vulnerable children, recognising that the literature on financial capability for this group has been limited but also that some work has been undertaken on three broad themes (Walker et al. 2018). As well as challenging economic circumstance and economic disadvantage being linked to poor financial capability, vulnerability and poor financial decision making (Atkinson, 2007; Kim and Chatterjee, 2013; MAS, 2016b), Walker et al (2018) discuss behaviour and skills and parenting and family relationships as important influences in financial capability (Walker et al, 2018).

In relation to ethnicity, Lusardi et al (2010) suggest that those from Black backgrounds have lower levels of financial capability that those from White backgrounds (see also Mandell, 2008; Lusardi and Mitchell 2008; Lusardi and Tufano 2009). The UK Adult Financial Wellbeing Survey 2021 Ethnicity Report too finds that managing financially is more challenging for those from Black and mixed heritage backgrounds, indicating the need for deeper exploration of issues faced by those from these backgrounds. Angrisani et al. (2021) and Kim and Xiao (2021) also suggest that differences in financial capability indicators and outcomes are more acute for those from those from Black and disadvantaged backgrounds (Angrisani et al., 2021; Kim and Xiao, 2021).

Parenting and family relationships are also identified as an important influence on the financial capability of children and young adults by Walker et al (2018) – much of which occurs through day-to-day interactions and implicit financial training. Deeper understanding of these influences for different groups of school aged students would be helpful when considering financial education initiatives (Walker et al, 2018; Gudmunson and Danes, 2011). Furthermore, Jorgensen and Savla (2010) report that parental influence impacts financial attitudes but not necessarily financial knowledge which may impact long term financial capability of teenage children and young adults (Walker et al, 2018; Jorgensen and Savla, 2010). Indeed it has been shown by MAS (2016a) that many parents are less confident in discussing financial issues with their children, even those parents who perceive themselves as good role models (Walker et al, 2018; MAS, 2018).

Another interesting area raised by Walker et al (2018) relates to financial institutions and lack of access to services for those from vulnerable backgrounds (Walker et al, 2018). This research considers the wider issues of who those from Black backgrounds trust to provide support on financial issues and raises potential issues relating to institutions.

Finally, Walker et al. (1918) also discuss areas of further research which include, amongst other suggestions, research to:

The latest MaPS Children and Young People’s Financial Wellbeing Survey (2023), which focuses on children and young people’s financial wellbeing and capability across the UK, also highlights some interesting issues. The report finds that compared to 2019, the same proportion of children and young people received a meaningful financial education, highlighting the need to evaluate the delivery of financial education going forward. The survey also finds that children from an Asian/Asian British or Black/Black British ethnic minority group are more likely to have received a meaningful financial education whilst those from White or other minority ethnic groups are similar to the children in the UK as a whole. In addition, the findings suggest those from Black backgrounds perform well in relation to various financial capability areas. Receiving a meaningful financial education is strongly linked to good financial attitudes and behaviours and those who receive financial education both at home (from parents/carers) and school benefit the most (MaPS 2023a).

The issue of mental health and ethnicity too has been recently reported on (MaPS 2023b) and the study discusses both income levels and challenges with benefits with those from ethnic backgrounds more likely to have household bill arears and that there is a sense of possible exclusion from accessing services for some of those from these backgrounds.

The above literature overview indicates some interesting areas for further research on a range of issues relating to financial capability. Our research responds to this need by exploring the lived experience of Black students aged from 15 to 17, focusing on a group on which there is mixed evidence in the literature but one which has been identified as experiencing higher financial vulnerability than their White counterparts as adults. The research addresses some of the research gaps identified by focusing on students’ perceptions relating to financial capability and day-to-day experiences of managing money as they approach financial independence and explores the wider context and issues faced by these students and their agency in managing finances.

Methodology

The aim of the project is to understand the lived finance and money-related experiences and needs of Black school aged students before they transition from school and living with family to living independently. Students in year 10 and year 12 were chosen as these were the years before major examinations but at a time when students were considering future pathways either in leaving school at 16 or moving onto further qualifications. It is important to note that students will have to stay in some form of education until the age of 18, whether this is remaining at school or taking the apprenticeship route. For both age groups entering the world of work for the first time, either permanently or on a part time basis, would also be a consideration.

The research employs semi-structured interviews to explore the lived experience of those from Black backgrounds in relation to financial capability. Interviews were chosen as they would enable the exploration of the lived experience of students and facilitate the understanding of wider social and economic context faced by the students as well as enabling understanding of both challenges faced by this set of students and the agency they hold in responding to their circumstances.

Within this research, we interviewed both those students who faced challenging economic circumstances and those whose parents were in more comfortable financial circumstances to gain understanding of financial capability of Black school students facing different circumstances. This approach very much recognises that within any one broad grouping, there are a range of backgrounds and experiences. We compare our results to findings from the wider literature in the area which presents research from majority backgrounds.

Semi-structured interviews were chosen as this enabled a series of topics and questions to be asked of all students but with the opportunity to probe further on any issues raised by students and enable students to raise any issues that had not been covered in the interview. The interview guide covered questions on participants’ financial habits, choices, experiences, and issues. Plans and/or expectations for their future after leaving school were also discussed as were issues of who the students would turn to for financial advice and ways in which financial education could best be provided for this age group of students.

Interviews were conducted with 25 year 10 and 12 Black students (15-17 years old) from across 2 schools in Milton Keynes. The two schools were in similar areas within Milton Keynes and were state comprehensive schools².

Key contacts in each school facilitated access to students. Students and parents were contacted with details of the project and consent obtained, with either parents and/or the students themselves as appropriate. Typically interviews lasted for 30 minutes. The interviews were then transcribed and a thematic analysis undertaken using NVIVO. Two of the researchers independently coded the themes from the interviews and then compared the themes and codes to reach a consensus on the key themes and codes. The codes and themes were then discussed with a third member of the research team and the results finalised. The results were then discussed with the final members of the research team to provide an independent review of the results.

Whilst enabling an exploration of the lived experience of Black school students in relation to financial capability, we recognise some limitations to the research. Our research is exploratory and further research in other schools and areas is needed to gain deeper understanding of the issues faced by those from diverse backgrounds. This includes further qualitative research with school students from diverse backgrounds facing different economic circumstances in different regions as well as students of this age from White backgrounds facing different economic circumstances to facilitate meaningful comparisons. Such research will make an important contribution to effective policy in this space. Quantitative research in this area would also be useful to complement the qualitative data and facilitate further comparisons.

Results

While our aim is to understand the finance- or money-related experiences and needs of teenagers from Black backgrounds in the UK, there is an implied context of considering how this differs from those of White backgrounds, and how any differences might link to the differences in financial capability indicators, outcomes, and the effectiveness of financial education. As such, we split our results into the areas where they appear similar to those seen in broader populations, and where they may suggest important differences, though these are primarily differences in emphasis rather than clear distinctions. This should help us, in the long run, to consider how financial education might be adapted to better meet the different needs and experiences of our target groups.

Similarities

In many respects, the responses from the students we interviewed did not seem significantly different from young person’s seen in broader populations. For example, most appear to:

Have day-to-day spending mostly on lunch and snacks; regular or semi-frequent spending on going out, clothes, phones, and other electronic items; and occasional larger purchases they might save up for. Much of this spending is online, though for many this distinction did not seem important or something they thought too much about, and payment cards of some sort were commonly used for both.

I tend to get myself McDonald’s after work. And the thing is with Apple Pay, I’m just tapping my card, thinking yes, just £3 coming at you.

Black Female, Year 12

Show good awareness of their day-to-day spending habits, primarily on lunch, snacks, or bus fare, while not thinking much about individual decisions for these. In contrast, they tended to think about larger purchases individually, and carefully. Where semi-frequent spending fitted within this, both what level of spending and what type of purchase they would think carefully about, differed among participants, and will be discussed later.

I look at the money I have, and I see what’s the cheapest option, how can I save a little bit more without spending all of it on food, and see, yes, what’s the better path of what I can spend on.

Black Male, Year 10

Save a sizeable proportion of any earned income, and most appeared to be able to save or budget for a bigger purchase. There was a range of participants who had part-time jobs and those who didn’t, with a significant split by age, but in keeping with many teenagers.

From every pay-check that I got, I would put money aside. And that saving that money aside allowed me to get my iPad.

Black Female, Year 12

Be moderately confident about money decisions that they need to be made at the moment, with most seeing some ways they could spend or save better, but feeling broadly confident that they do it relatively well and mentioning a range of typical positive and negative habits

Some people will just go and use their account and struggle, where they could use other different ones, which could help them. I know with my brother, he has a Santander account. And it lets him overdraw to a certain limit. In that way, if he doesn’t have the money, he can do that, and when he gets paid from his job or when his maintenance money lands or whatever, then he can pay that back.

Black Female, Year 12

Mainly talk to family members about money or spending decisions, occasionally friends, with a greater emphasis on family when it comes to asking for help. Most mentioned having little direct input into family financial decisions, though having some discussion of the outcomes they might want (e.g. where to go on holiday, what groceries to eat that week, but not the financial elements of this).

I tell my mum, inflation is high, you can’t just be spending money all the time. She’s like, yes. And then she’s like, her petrol’s gone up probably times two of what she had before, or that the electricity bill’s high and that we need to stop using lights. We should turn them off when we’re not using them. Stuff like that.

Black Female, Year 12

Report being influenced primarily by their friends, their own needs or desires, or through things they had seen and liked on social media. When pushed, most admitted being influenced by advertising or ‘influencers’ in seeing things they might like, but thought they bought things because of their own desires rather than being made to want things through advertising or social media [a common view whether it is accurate or not].

So you talk to your mum. Is there anyone else that you would talk to? Sometimes my friends that I’m really close to.

Black Female, Year 12

Recall elements of financial education they had received, but with limited links to their common (spending) decisions. Some suggested it was useful for the future, though many suggested they would look for the information they needed when they needed it.

It could’ve been taught to us earlier, like how to manage your money, savings.

Black Female, Year 12

Differences

From our results four areas emerged as potential differences in lived experiences between the teenagers from Black backgrounds who we interviewed, albeit in all cases a difference in emphasis rather than a categorical or distinct difference: trust and influence, future plans, financial decision making and financial education, focusing on timing and delivery. We highlight that our sample and results are not sufficient to state these are representative of this group, or sufficiently different from the broader population, though we offer these as potentially important factors worthy of future research, as they may help explain the different levels of financial capability, and offer ways to make financial education more relevant for these groups, if investigated further on a bigger scale.

Trust and influence

A key finding is that family members, especially parents, are the main people young people in general talk to or ask for advice from about money. The focus on family seemed particularly acute for our participants, appearing to some extent to be to the exclusion of more ‘official’ and potentially more knowledgeable sources of help. The overwhelming response was that family were the most important and trusted people that the respondents turned to for this advice.

It’s with mum I speak to stuff about, like paying stuff. Because she’s likeminded with me. So we always talk about stuff like that, yes.

Black female, Year 12

A minority response that finances were not discussed was presented by a small number of respondents but this was not typical. For example

Okay. So you don’t really talk to your family about it, but do you talk to your friend Yes. I do talk to my family about it, but I just make a small conscious effort not to talk too much, because I don’t want them to judge me that I’m wasting my money on unnecessary items.

Black female, Year 12

In addition to parents, those that had older siblings turned to siblings for financial advice – particularly about immediate future plans.

If I’m going to uni, then I need to save at least this much for accommodation, this much for socials. Just because my sister’s already gone, so she’s told me, okay, you need to actually be aware of how you’re spending your money.

Black female, Year 12

Near peer to peer interaction appears something that is particularly relevant to our interviewees and has been raised in other research (for example MAS, 2014) and this is clearly in evidence in our research.

Most participants had not experienced any serious financial difficulties due to their age, so advice sought tended to be more about making good purchases, saving, and part-time employment, for which most people are likely to turn to family or people they know well, and to a much lower extent, school friends.

What marked this as potentially different was the emphasis and responses when asked where they would go if their family did not know, with many having little idea, of where they could go for help.

In addition, a few interviewees mentioned seeking help from a teacher:

I feel like probably family members, because I wouldn’t know who else to go to and if they would know. Or probably someone that’s experienced, probably teachers in school.

Black female,Year 10

However for the vast majority of respondents, there appeared to be little appetite for asking those outside the family, either within school or institutions outside the school. There did not seem to be any significant differences in this between those from more comfortable economic buckhounds and those facing more challenging economic backgrounds.

Whilst not specifically part of the interview, we speculate that there may be a potential underlying theme of lower levels of trust in external institutions or experts. This may link to research showing minority communities, and especially Black communities, tend to have lower levels of trust in official institutions such as the police (e.g. Brown and Benedict, 2002), government, and doctors (e.g. Ferguson, et. al., 2022), elements of which may also apply to banks and councils.

It is worth noting that, to some extent, this could be a function of a more universal human process, by which we tend to trust people we see as ‘like us’ (and some suggestion this also applies to organisations who we see as ‘like us’ see e.g. Siegrist, 2019), with the issue being that many official or expert institutions tend to be perceived as being part of the majority, primarily-White, middle class, and hence less accessible to those from different backgrounds. It could also be based on experience, with many stories of institutional racism coming to light in recent years.

It is also implausible that any financial education could cover all the topics people need for adult life in sufficient detail in advance, so it becomes crucial to signpost people to where they can get the detailed information they might need in a specific situation. For example, their rights as a tenant if they find themselves with a landlord charging them extra fees, or how to do a self-assessment if they find themselves with multiple jobs or outside earnings.

Financial education tends to point to official, formal sources of information, which may prove a barrier if the students do not trust those sources. This is certainly an area that requires further research – that of deepening our understanding of those who are and who are not involved in informing and/or providing advice to students in relation to elements in relation to financial education and the issue of trust.

Addressing issues of community distrust in institutions is something financial education must consider and indeed developing financial education interventions for different ethnic minority groups addressing the issue of trust, may be appropriate. This may include both what is covered, the delivery mechanisms and who the intervention is delivered by to be meaningful and to have impact. This is something that certainly requires further exploration.

Another interesting issue that arose with some students was the issue of religiosity and the links between faith and trust and financial decision making and again this is something that would benefit from further research.

The similarities and differences we note above were seen for both those from more challenging backgrounds and those from more comfortable backgrounds.

Future Plans

Influence over future plans was also something that raised some interesting responses and issues. Most of our participants had some form of plan for their future, usually at a level of development one might expect from their age, and these covered a range of options from apprenticeships, university, employment, and entrepreneurship and these are summarised in table 1.

Table 1 Summary of future plans of respondents

Future plans	Number of students
Further Education	1
University	17
Apprenticeship	5
Job	1
Not identified	1
Total	25

Although in the minority, a small number of students did raise the issue of entrepreneurship, usually alongside employment. An interesting example was where one respondent indicated a greater focus on making money themselves rather than employment, which was rather unrealistic and which appeared to be influenced by extreme cases or lifestyles. This participant wanted to go into property development, in part influenced by the lifestyle of an influencer who did this and in part through an older sibling, with the idea of getting rich and retiring within a few years.

I don’t plan on working for very long. I want to work for six years, and then just call it quits

Black male,Year 12

We speculate on possible reasons for this type of response. These types of responses could link to wider socio-economic contexts and perceptions and views in these communities on employment and lack of equity within workplaces or because of evidence and personal accounts of bias in hiring practices (both explicit and unconscious bias). These wider views may lead to students believing that even if they get good qualifications they will struggle to find a good job, and hence focus on entrepreneurship out of necessity. This is supported by the findings of Anderson and Nelson (2021) which indicate that, whilst those from minority ethnic backgrounds tend to undertake higher levels of post 16 education, this is not associated with better labour market outcomes and thus entrepreneurship is entered into.

Alternatively, responses could link to social media, and the emphasis it places on the extreme or notable which goes viral, such as where people have been extremely lucky in making large sums of money and the lifestyles they enjoy. Further research is needed to clarify this element and the wider implications of experience in work of those from diverse backgrounds and the impact on younger members of the community.

Making spending decisions

In the similarities above, we mention the distinction between day-to-day spending that tends to be habitual, and larger purchases that tend to be individually thought about, which roughly matches how most people make these decisions. The spending was categorised into needs versus wants. Some students did have part time jobs and often got paid several times a month. In terms of the split between spending and saving, some students lacked confidence and wanting to have more knowledge. However, several students were very clear how much they saved on a regular basis, and this was something they had decided by themselves rather than having clear goals or from any financial education received.

So I get paid every two weeks, so with every pay day, I try to save at least 60% of it, and then spend the rest. Or I try to save as much as I can.

Black male,Year 12

Students discussed what they purchased and in terms of day-to-day spending this tended to be on food, travel and phone bills. However, students did demonstrate instances whereby they had saved for some items, such as shoes, clothes and jewellery. There were a few instances whereby students were saving for bigger items such as a bike, a car and also one student mentioned saving for University. It is the saving for bigger items that are not day to day purchases where students particularly needed more help on making good decisions and having more awareness of the relationship between spending and saving.

I’m looking at a couple of cars right now. I’m just deciding which one will be the best for me, because different cars, they all have different insurance quotes. And the fuel, as well. So I’m just looking which one would be cheapest option for me.

Black male,Year 12

Where savings were held was not raised by any students and it certainly appeared that students held current accounts but no other types of accounts which might facilitate savings.

We also identified a middle group of regular or semi-frequent spending, such as going out, clothes, and phones, which can be habitual or conscious decisions depending on the context. Often where the line is drawn is thought to go by necessity, with people on lower incomes having to think about smaller purchases which those with more money may not have to.

When I get paid, I try to save. I really do try. If not, then I just buy clothes. I buy whatever I need. I buy food. I go out. But then, I do save. I try and do this thing where I save 50% of my pay

Black male, Year 12

However, we did find lots of examples whereby students were considering their spending in the categories of needs versus wants.

Yes, I feel like one of the main things I've learned is to prioritise, like I said, the list of needs and wants. They’ve helped me create this list, and if there's a want I actually need, then they’ll guide me to put it on the needs list.

Black male, Year 10

This ‘mid-tier’, semi-frequent spending, was a focus of discussion for many of our participants and is where the difficulties tended to focus on spending i.e. spending that is not day-to-day.

Mid-tier spending is likely to be most difficult for most teenagers from all backgrounds to make decisions on. Thus, it is not clear to what extent this differs from the broader population of teenagers. However, as this is an area it is particularly easy to overspend on, given the emphasis from participants it is likely an important topic for further investigation.

The thing is with Apple Pay, I’m just tapping my card, thinking yes, just £3 coming at you. Just £5 coming out. And then I must have looked on my bank. I must have looked at how much I had left on my account. And I was like, where did my money go, because it seemed like I spent so much money, but when I’m actually spending it, it seems like so little.

Black female, Year 12

An interesting area of discussion in the interviews related to decision making around spending, particularly with spending that is neither day-to-day nor long-term saved for, and the lack of perceived knowledge/ability to make good decisions in this situation. A number of participants mentioned devising their own budgeting schemes and tools, which were often ‘firm’ measures such as cutting up payment cards or stopping all spending. Sometimes these appeared to be used to aid saving for an item they wanted to buy, though in other cases they may have been reactions to having overspent in the past.

I couldn’t really motivate myself, so I just blocked my account. If I tried to use my card, it would decline. It took two months. It taught me how to be patient with money.

Black female, Year 10

Again, it is not clear to what extent to which these differ significantly from a broader population, but this appears worthy of further study alongside the ‘mid-tier’ spending habits and how they might emerge. In addition, consideration of how financial education may help financial decision making by school students for example by identifying a tool kit of resources which they are able to draw upon depending on the decision they are making, would be a useful area for future research.

Financial education timing and delivery

Most people find it difficult to focus on something they cannot see as being relevant to them, and the pace of modern life means our attention is often dominated by things which are immediately relevant. This focus on topics of immediate relevance was apparent with our participants when asked about the financial education they had received and any views they had on what they (or their peers) needed from it.

Students who were 17 and had part time jobs highlighted that more information that related to jobs would have been helpful for example in understanding payslips and taxes, before they had actually started work.

Students noted that financial education relevant to them would be helpful just before they needed this for example the need to provide information when it was relevant so perhaps information on job related practicalities before jobs were applied for, for example in Y10 and more information on taxes and university relevant financial information in Y12. It is important to balance this by mentioning that many participants also acknowledged the importance of key issues for the future such as tax and pensions, but overall there was an emphasis on the need for greater relevance, especially immediate relevance.

It’s really difficult with financial education because it’s something we know that everybody is going to need in a few years’ time, but it’s not something that you particularly need right now. And yet at the point when you need it, it’s a bit too late to start learning it. And it’s really hard to get it in a way that people understand and can engage with because it just seems like an abstract thing, like how to deal with bills.

Black female, Year 10

Some students showed interest in understanding about issues that would be more important later in life for example taxes but this was less common than wanting information just before they needed it.

I just want to know about taxes, and how they work. Yes, because sometimes I don’t really understand. Because say when my mum’s talking about car taxes and other taxes. I’m like where is this even coming from. Yes, so sometimes I get a little bit confused.

Black Female, Year 10

In terms of the delivery method a range of methods were suggested within the interviews. These included both having online courses or apps which could be accessed when needed by respondents, and more teaching in school with face to face, case study scenario-based content which would enable students to learn about particular situations, and consider different possible approaches to decision making.

Like, in PSHE, we have these fake examples of people that are going through situations. And we look at those. I think that would help with people making decisions.

Black male, Year 10

Fake in this context related to scenarios which were not real but were about potential real life situations that the students might find themselves in. Learning about making good decisions was also identified during the research,

This is not so much about learning how a bank account or how a pension or such works. It’s more about the decision. How to make good spending decisions. How much you should save.

Black female, Year 12

Therefore, identifying the needs of students in terms of content would be the focus of future research to identify the core themes that students are requesting and to identify the mode of delivery that students feel they would benefit from.

More concretely, many students mentioned that they would like to learn more about how to make good spending decisions, and to learn more informal, relevant, ‘real’ advice about what to do rather than information about things they’re told they should know about and further research would be helpful in identifying if there are differences between different groups of students on what they view as relevant.

Many of the findings appear relevant for all students, irrespective of their backgrounds and our report highlights those areas which, at least in emphasis, seemed more prevalent for those minority ethnic students. This raises both some interesting issues for financial education for all students as well as interventions which might be more appropriate for those from ethnic minority backgrounds and which require further research and consideration. For example how best to provide information and advice when required, with some suggestions provided in the interviews. Another interesting issue to explore is the issue of how to deal with decisions that are not immediate but important in the longer run for example around pensions.

Finally, as much of financial education in schools is not about decisions that students will make while they are at school, but about preparing them for life after school, there is also a question of how much students are willing to learn for future benefit vs. immediate benefit. Further exploration of any differences in the above for different groups of students would be helpful for the design of financial education for school students of this age.

Conclusion and future research

This research employed semi-structured interviews to explore the lived experience relating to financial capability of Black school students aged 15-17 in two schools in Milton Keynes. We note that many of the findings indicate that the Black school students who were interviewed showed similarities in relation to financial capability to teenagers of other backgrounds. However, we raise some issues where, at least in emphasis, some differences are indicated. These relate to trust and advice, future plans and financial decision making. The research also explores potential ways of financial education delivery and timing which are relevant for future policy in this area.

Our research is a small-scale, preliminary project, and as mentioned we must be careful to note that our results do not offer any robust, generalisable conclusions. However, we believe, that our results provide sufficient suggestion of differences to warrant further research, on a larger scale, to investigate these in further depth. This is particularly the case given the growing acknowledgement that there may be a need to consider different approaches to financial education for different groups. Targeted financial education may better address the needs and realities of different groups and that young people from diverse backgrounds, particularly those from economically disadvantaged backgrounds, face some of the biggest barriers to financial capability and good financial outcomes.

It is therefore important to explore the lived experience of different diverse groups including Black, White, Asian, Mixed and Other ethnic groups from different regions and from different economic backgrounds to provide deeper understanding of factors influencing school students’ financial capability and financial education needs, both in terms of delivery and timing. Furthermore, further research is required on those in more vulnerable circumstances in relation to financial capability and wellbeing for example Black students who leave education early and those who come to the UK who don’t speak English, and who may be more vulnerable to financial exclusion.

Larger scale projects incorporating both further qualitative and quantitative research would now help to further our understanding of financial capability of different diverse school age students. This would help us to gain a deeper understanding of the contextual factors at play as well as issues of agency and the key areas that may drive important differences in financial capability and outcomes between different diverse groups. This would, in turn, hopefully better explain what factors are primarily driving the difference in financial capability and outcomes that we see, and explore how financial education could be adjusted or redesigned to address this.

Building on the above research, we would also suggest that longitudinal studies working with a cohort of participants with regular touch points to explore the impact of financial literacy in teenage years on the life experience of participants whilst at University, in early adulthood and later in life, is another important area of study. This would enable policy makers to better understand how better to prepare University students and young adults in relation to financial decision making as they transition from home to independent living.

Finally, our research starts to unpack the experiences relating to financial decision making of school age students in school, at home and online with the potential impact of media and peer-to-peer or near peer-to-peer relationships raised. In addition, potential avenues for effective financial education, how to deliver this and who is best positioned to deliver this such that there is meaningful engagement by those from different ethnic minority groups and impact on financial capability in later life is noted. Furthermore, in addition to financial education for those at school being important, it is also worth noting that, in order to improve financial outcomes later in life, providing financial education for those who miss school is also important. Further research on both those who do attend school and those who do not is important and it would be interesting to explore, in addition to the above, attitudes towards money and how issues of risk, interest and debt may fit into financial education interventions to help improve financial capability.

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Authors

The Open University, The Centre for the Public Understanding of Finance (PUFin): Katie Balaam, Will Bramley, Fidele Mutwarasibo and Ali Ataullah

DeMontfort University: Shraddha Verma