Despite financial education reforms introduced in 2014, a staggering 83% of young adults still leave school without learning about mortgages, credit, or budgeting.
As the Managing Director of Boon Brokers, a fee-free UK mortgage brokerage with more than 10,000 clients nationwide, I witness the consequences of this knowledge gap on a daily basis.
We work with thousands of first-time buyers, many of whom enter the housing market with little understanding of interest rates, loan terms, or affordability assessments. These aren’t just technical oversights – they are gaps in essential financial knowledge that can lead to costly decisions and long-term hardship.
A Generational Crisis in Financial Literacy
In a housing market increasingly shaped by inflation, elevated mortgage rates, and high property prices, young adults are being asked to make complex financial decisions without the tools to understand them. With no meaningful education on topics like debt management or risk, most young people today are turning to social media or family for advice, both of which can often provide and perpetuate misinformation.
The result? Poor borrowing decisions, vulnerability to high-interest credit, and confusion about financial terms that should be common knowledge; deposit size, credit files, LTV, fixed-rate, tracker mortgage and much more.
It’s clear that the 2014 reform was a step in the right direction, but implementation has been patchy. Our own recent research found that financial education in UK schools remains inconsistent, with no standard framework to ensure students leave school with a working knowledge of real-world finance.
Financial Education as an Economic Strategy
I believe that we need to stop viewing financial literacy as optional. A student’s financial education underpins the future economic stability. A financially informed generation is much more likely to build wealth, less likely to default on loans, and better equipped to contribute to the economy through homeownership and investment.
From a property market perspective, improving financial education helps reduce transaction delays, improves borrower confidence, and encourages smarter decision-making – key factors in a more resilient housing sector.
What are the Next Steps?
Schools must be supported to integrate practical financial learning into the curriculum – not as an add-on, but as a core subject. Mortgage brokers, banks, and fintech companies should play a proactive role, partnering with schools and colleges to deliver real-world financial knowledge.
If we want to prepare the next generation to thrive in business, own property, and manage finances responsibly, we need to stop treating financial education as a luxury.
Gerard Boon, Managing Director at Boon Brokers.