Background
In 2019, the Financial Conduct Authority (FCA) conducted research into the financial status of UK adults, yielding worrying results. Over half the UK population is considered ‘financially vulnerable’; 8 million people are ‘over-indebted’; and 20% of the population would struggle if their monthly mortgage or rent increased by just £50 per month.
Financial concepts, formulas and industry jargon create a lack of both financial awareness and understanding are contributing factors to a lack of interest amongst young people learning about financial practices. Despite financial literacy being an essential tool in adulthood, if people want to avoid making poor financial decisions, the UK educational system provides few specific courses on managing personal finances or understanding how the financial services industry operates. It is this gap that we seek to fill by engaging students in a topic which will affect them throughout their life, clarify their understanding, and encourage them to question and learn more about financial services.
The Importance of Financial Literacy
Saving for a new car, deciding to take out a student loan, buying your first house, or saving for retirement; all decisions that require an understanding of money management and key financial principles. Without proper financial awareness and discipline, many people find themselves falling behind on payments or slipping into debt, creating a cycle of poor financial decisions, and increasing hardship. If students engage in learning the fundamental principles for managing personal finances before they start to purchase higher-value items, much financial instability could be avoided.
With the average UK salary in 2020 being ~£30,000 per year, most of those earners will be able to meet their bills and financial obligations regularly, provided they follow basic financial principles. For those on less that the average UK salary, it is even more vital that they clearly understand the workings and obligations of financial decisions before taking out loans, credit cards or lease arrangements if they want to protect their financial stability.
What We Do
The Finance Network was launched by students, for students. Our aim: to create a platform for people to acquire the knowledge of the fundamental principles of personal finance, as well as to offer content of quality and interest to those considering a career in financial services.
Our educational articles simplify topics that typically use ‘cryptic’ financial language. In our personal finances section, we maintain a student-focused approach, giving our readers a basic introduction to a range of topics such as ways to save/invest money, how credit cards actually work if they are not paid in full every month, and what to look out for to try to avoid pitfalls.
For those interested in a career in the financial services sector, we will use the information we have found from our own research into a range of topics in this area.