Children as young as eight worry about money as cost-of-living crisis bites

19 October 2023 , 11:38

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A study has uncovered children's money worries (Image: Getty Images/Image Source)

Children aged just eight worry about money, a heartbreaking survey has revealed.

A study for a financial education charity found 39% of youngsters aged between eight and 15 “sometimes worry about money”. The figure has rocketed from when kids were asked the same question two years ago and 23% admitted they sometimes got anxious about cash - suggesting the cost-of-living crisis has hit even the youngest in society.

Some 48% of children blamed their increased concerns about money on rises in the price of food and energy bills - compared with 25% in 2021 who pointed to the coronavirus pandemic, according to the YouGov poll for the Centre for Financial Capability. Revealing how desperate parents have failed to hide their own fears from their children, 71% of those quizzed said that “because of the current increase in the general price of food, energy bills, my parents or carers seem more worried about money”.

Some 84% believed that “looking after money now will help me when I'm older” - a 7% rise from when the same question was asked two years ago. The polling found just 30% of youngsters “have access to financial education at their school” - despite research by the Money and Pensions Service showing financial habits form as early as seven-years-old.

Centre for Financial Capability trustee Jane Goodland said: “Today’s polling findings are truly shocking and illustrate the huge and wide-reaching impact that the cost-of-living crisis is having on our young people, who are increasingly concerned about money as they watch their parents or carers navigate rising living costs.

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“Many children and young people are being let down by the current system that offers far too little, if any, preparation for their financial future, condemning many to financial insecurity and vulnerability in later life. Currently, millions of children and young people leave school without any financial education, leaving them vulnerable to future economic shocks and unprepared for future financial decisions. Rising levels of unsustainable debt and mental health issues associated with money have to be tackled.”

Ms Goodland admitted that “financial education is not a silver-bullet which can solve the cost of living crisis”. But she added: “No parent would let their children go swimming without swimming lessons first and yet we are releasing millions of children into adulthood without the first idea about how to manage their money.”

:: YouGov quizzed just over 1,000 youngsters online in July.

Ben Glaze