Financial Capability - young adults

Part of: Finance World

What is Financial Capability?

Nationwide believes that it is particularly important for young people to develop a good understanding of how to manage their money, and eventually their debt, effectively and responsibly. Financial capability comprises three inter-related areas, each with three underlying components:

Financial Knowledge and Understanding

  • Different types of money/payments
  • Income generation
  • Income disposal

Financial Skills and Competence

  • Gathering financial information and record keeping
  • Financial planning - saving, spending, budgeting
  • Risk and return

Financial Responsibility

  • Personal choices and the financial implications
  • Consumer rights, responsibilities and sources of advice
  • Implications of finance

Our 'Finance World' programme links to the NPC Financial Capability Strategy for the UK and curriculum objectives for the 16-18+ age range. See the curriculum links section for more information on how the resources meet the objectives.

Engaging young adults

From age 16, young people are entering a new life stage. They are rapidly growing in maturity and have an increased desire for independence, yet they often lack knowledge and experience.

Circumstances for this age group vary dramatically. They may be looking for their first job, involved in further education, or be unemployed. Whatever their situation, finances are usually a major concern. They may be thinking about moving out of home, saving for a major purchase like a car or holiday, dealing with the responsibility of budgeting with a student loan or grant, or just managing day to day living on a limited budget.

Economic uncertainty and unemployment, coupled with the lack of university places and worries about getting a job once their studies are completed, mean that many young people are anxious about their future.

More than ever before, young people need support and advice about how to manage money (e.g. choosing financial products; understanding tax, interest rates and different forms of payment; understanding how to budget and avoid unmanageable debt). This guidance should equip them with the skills and confidence they need to lead the life they want.

This 'Finance World' programme has been designed to engage the interest of this age group with the exciting theme of spies and missions. The visually-stimulating interactive games engage them in fun tests of skill while allowing them to build financial understanding - without feeling as though they are being 'taught'. The games are supported by 'dossiers' (fact sheets) with information about all aspects of personal finance in straightforward, age-appropriate language; together with a glossary explaining financial terms, and case studies that show how the information is relevant to real life.