A Year in Review: The Biggest Financial Literacy Stories of 2024
As 2024 draws to a close, financial literacy has emerged as a key topic of national conversation in the UK.
From evolving spending habits to debates around financial education in schools, the past year has been marked by data, dialogue, and decisions that will shape the financial wellbeing of future generations. Here, we recap some of the most significant stories of the year, highlighting the importance of open discussions about money at home, in schools, and across society.
Record breaking festive spending projected for 2024.
Festive spending is projected to hit a record £88.29 billion this year according to a report by vouchercodes.co.uk, while the IPA's annual Christmas report revealed that British consumers expect to spend an average of £593.90 on holiday-related activities and purchases. Most of this budget goes toward gifts (55%), followed by food and drink (18%), while decorations and travel account for smaller portions of the budget.
Data from the Money and Pensions Service also highlighted that 46% of parents feel pressured to overspend during the holidays, driven by societal expectations and a desire to create memorable experiences for their children. A report last year from The Money Expert saw how 36% feel pressured into providing a lavish Christmas for their loved ones and 20% feel guilty about cutting back on spending for Christmas last year.
These trends underline the importance of financial education as a tool to navigate seasonal pressures. Parents who model budgeting and involve their children in money conversations can reduce financial anxiety and instil lasting financial skills.
The Push for Financial Education in Primary Schools
This summer, the discussion around financial education in schools gained traction when MPs debated its inclusion in the UK’s primary school curriculum. Advocates argued that financial literacy is not just a skill but a necessity for navigating modern life, citing evidence that children’s money habits form as early as ages 3 to 7. Despite these calls, financial education remains underrepresented in the curriculum, leaving many children without access to the foundational skills needed for future financial wellbeing. Inequality in access to financial education was highlighted in our report which found that 64% of primary AP teachers we surveyed reported that they are not currently teaching financial education at all. It exposed the main barrier to financial education to primary AP settings as a lack of resources that engaged learners with additional needs.
Key voices, including the Just Finance Foundation, urged the government to prioritise teacher training, invest in quality resources, and integrate money lessons into existing subjects like maths and PSHE.
‘TikTok’ Trends and Youth Financial Behavior
This year, social media continued to shape young people’s financial habits, both positively and negatively. Platforms like TikTok have been at the forefront of viral financial trends, such as cash-stuffing and #SpendingDiaries, which have sparked interest in budgeting and saving. However, these trends also highlight the dangers of turning to unregulated online influencers for financial advice.
One particularly concerning example was the “infinite money glitch” trend, where participants withdrew large sums of money from ATMs using fake cheques, not realizing they were committing fraud. This incident underscores the lack of financial literacy and critical thinking skills among young people, as they may not fully understand the consequences of such actions.
With more young people turning to social media for financial advice—17% of 18-24-year-olds in the UK, according to NatWest—it's clear that while some trends encourage responsible financial behavior, others can lead to harmful financial decisions. This reinforces the need for comprehensive financial education to help young people navigate the complexities of money management and make informed, ethical choices.
Employer Initiatives for Financial Wellbeing
Workplace conversations about money also gained momentum in 2024. Many employers introduced programs to support financial literacy among employees, ranging from budgeting workshops to debt management resources. These initiatives not only aim to reduce financial stress but also contribute to productivity and overall wellbeing. Employers have also been encouraged to extend these conversations to family settings, empowering parents to pass on positive financial habits to their children.
Building a Financially Resilient Society
As we reflect on these stories, a common thread emerges: the need for open, inclusive conversations about money. Whether addressing holiday spending pressures, advocating for school curriculum reforms, or navigating social media trends, the key to a financially resilient society lies in empowering individuals with the knowledge and skills to make informed choices.
The past year has shown that financial literacy is more than a personal benefit; it is a societal necessity. By normalising discussions about money and investing in education, we can lay the groundwork for a financially secure future for all.