Debt Awareness Week: Survey finds two in five young adults don’t feel confident managing debt

With Debt Awareness Week underway, new research reveals a growing confidence gap in how young people manage their money, especially when it  comes to debt.

In a nationwide survey of 2,000 UK adults, Shepherds Friendly asked how confident people felt across key financial areas, including debt, credit scores, saving, investing and everyday money management, revealing a financial confidence gap among young people in the UK.

While many Brits feel confident handling basic banking tasks, far fewer feel equipped to manage more complex financial decisions.

Debt Awareness Week: Survey finds two in five young adults don’t feel confident managing debt

Key findings from the research:

• Just 60% of 18-24 year olds say they feel confident managing debt, leaving 41% unsure how to handle borrowing and repayments, making debt one of the biggest confidence gaps among young people.

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• While confidence is high in everyday financial tasks such as online banking (78%) and reading bank statements (74%), this drops significantly for more complex areas such as credit scores (42% not confident), comparing financial products (44%), and understanding the impact of inflation on savings (47%).

• Nearly 50% of 18-24 year olds say their finances have had a negative impact on their mental health, while 44% say trying to understand their finances makes them feel stressed, and nearly 40% admit to losing sleep over their finances.

• Nearly 60% of young adults believe personal finance should be taught more in schools. 60% say schools should teach young people how to save and invest, and 42% say their financial struggles stem from a lack of financial education.

Derence Lee, Chief Finance Officer at Shepherds Friendly, believes that without improved access to financial education and advice, many people risk falling further behind in their financial wellbeing. Derence says:

“Our survey showed that many people feel unsure about different areas of personal finance, from investing to insurance. But understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money. Improving financial literacy can benefit everyone, whether you’re just starting out or already thinking about retirement.

“There’s plenty you can do to build your money skills. Even small steps, like exploring online learning tools, using budgeting apps, or reading trusted resources, can make a real difference. For those who feel unsure where to start, speaking to a qualified financial adviser can help turn confusion into clarity”

More information can be found in the press release below, or the full survey can be found here: https://www.shepherdsfriendly.co.uk/resources/money-literacy-2025/

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