The Spenders Blog
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Recognising Key Demographics
Research Update:
One thing Anniyah (Founder, of Smart Spenders) has always believed in, is helping those who do not have a ‘safety net’ or those who do not have any feeling of financial security.
Smart Spenders has been designed with Gen Z & Gen Alpha in mind, hence the design, look and feel. One of the key demographics we’re focusing on is young adults (ages 16 to 21). This is one of the most important groups we aim to serve; for young adults living independently (not by choice), taking care of their households, or looking after vulnerable family members - financial stress is often a constant state of mind. These young people can feel isolated in their money struggles because they cannot turn to parents or guardians for advice. 1 in 3 young adults feel unsure of their future due to financial uncertainty and the emotional toll it takes. For example, young people supporting older parents or family members with addiction may face overwhelming responsibilities that require a robust understanding of budgeting, managing debt, and finding financial support. Studies reveal that young caregivers are twice as likely to experience severe financial stress, which impacts their health and academic aspirations.
A recent NatWest survey found that over 50% of young people aged 16–25 felt the cost-of-living crisis impacted them more than the pandemic did, highlighting the intensity of these pressures. Additionally, young people from disadvantaged backgrounds are significantly less likely to continue their education or secure well-paying jobs as they often need to prioritize earning to support themselves or family members. This reinforces a cycle of limited opportunities, which impacts their ability to break out of financial instability. Data shows that around 20% of young adults live independently in the UK, with many reporting increased financial pressures, particularly among those from lower-income backgrounds. Furthermore, financial distress disproportionately affects young people from disadvantaged households. Approximately a third of young people report struggling with essential expenses such as food, rent, and utility bills, amplifying stress and affecting their mental health. These issues extend beyond immediate financial concerns, in turn influencing their academic and career pursuits.
Engaging these individuals means acknowledging and addressing their unique challenges. Traditional budgeting tips may not apply, so we will focus on practical strategies. We will also prioritize our prospective content on mental health, as studies link financial hardship to increased stress, anxiety, and even depression.
Aren’t educators doing something about it?
The landscape of financial literacy education reveals significant gaps, especially for young people aged 16 to 21. Research shows that around 61% of young adults in the UK cannot recall receiving any financial education in school. This absence of formal instruction leaves many ill-prepared to navigate real-world financial challenges. Although some schools incorporate financial literacy into their curricula, these programs often fail to reach all demographics effectively, particularly those from low-income families or without a financial safety net. This oversight is critical, as financial literacy is essential for individuals facing economic hardship.
In the absence of formal financial education, many young individuals turn to social media for financial advice, particularly platforms like TikTok. However, while some influencers offer valuable insights, many lack the qualifications to provide sound guidance. Alarmingly, 58% of 18-24-year-olds rely on TikTok for financial advice, which can lead to misinformation and exploitation. Additionally, a notable gender gap exists, with only 25% of women feeling confident in managing finances compared to 35% of men. This disparity can have long-term implications for financial independence and security.
Financial literacy for this group is not just a life skill; it can mean turning to dark avenues for survival. And, no 16-year-old should be making trade-offs between money and education.
Best,
The Smart Spenders Team
Anniyah, Joneeka, Amy & Sara Xx
Why We’re Taking FCA Compliance Seriously.
A Research Update:
When you’re in the business of financial literacy, it’s essential to keep up with every regulation that might affect your work. We’ve always known that Smart Spenders may need to comply with the Financial Conduct Authority (FCA) standards. This requirement emerged during an initial internal review; as our organization grows, so will our offerings—and with it, the legal responsibility to meet financial standards. Upon checking with a compliance consultant, it was clear that our activities fall within the scope of FCA regulations, ensuring that all our information-sharing practices and resources align with current UK financial standards.
The FCA compliance requirement isn’t just about ticking boxes; it’s about instilling trust.
Our mission at Smart Spenders has always been to empower, not just inform. Adhering to FCA guidelines means our users and partners know they can count on Smart Spenders as a credible, trustworthy source of financial literacy.
So, how are we tackling this?
We’re collaborating with an FCA-accredited advisor to determine the specific steps and licenses we need.
We’re evaluating our prospective content and potential partnerships to ensure every facet meets regulatory standards without compromising the clarity and accessibility of our messaging.
We’re building out a roadmap that lays down clear timelines and milestones to reach compliance, while training the team (Anniyah, Joneeka, Amy & Sara) to stay updated on any regulatory shifts in financial education.
Smart Spenders isn’t simply evolving to meet regulations - we’re growing with them.
This journey towards compliance is our commitment to our users, staff, investors and partners that the information they rely on meets the highest standard, every step of the way.
Best,
The Smart Spenders Team
Anniyah, Joneeka, Amy & Sara Xx
Why Scrapping the ISA Scheme Could Hurt Students. Here’s What You Can Do About It…
The recent decision by the Labour Party to scrap the proposed ISA scheme, which would have allowed tax-free investments of up to £5,000, is a missed opportunity for those who are already struggling with the rising cost of living.
This scheme could have offered young savers a real boost in growing their wealth, encouraging early investment in the UK market.
Let’s not dwell on this. How can we turn this into a learning opportunity?
Why This Matters for Students
For some, every penny counts. Whether it’s budgeting for tuition, rent, food shops, or even social activities, financial pressure is real.
The British ISA scheme was an exciting proposition because it would have provided a tax-free incentive for young people to start investing. In an era where student loans, interest rates, and debts are increasing, creating wealth early can be a game changer.
Without this scheme, it’s just yet another reminder that students need to rely on their own financial literacy.
But whatever let’s look at our options.
A Mindset Of Action: What You Can Do Instead
Even though the ISA scheme has been scrapped, there are still other ways students can grow their wealth and make smart financial decisions.
Here are some alternatives worth considering:
1. Lifetime ISA (LISA):
A good option for students looking to save for a first home or retirement.
With a 25% government bonus on contributions up to £4,000 per year, it’s essentially free money.
BUT, it’s not flexible. You can’t just take money out as needed.
This is a long-term investment - a solid alternative.
2. Stocks and Shares ISA:
If you’re looking for more investment freedom, this type of ISA still allows tax-free growth on investments.
You can invest up to £20,000 tax-free!
And, there’s flexibility! Take out money when you need it, but do it in advance. Brokers need to settle your investments before they can transfer your earnings. Expect a 2-5 working day delay.
The key is to start early and invest in the long term. Compound interest can work wonders when you give it time.
3. Peer-to-Peer Lending:
Platforms like Flippa offer students a way to invest in businesses and earn higher interest than traditional savings accounts.
However, be cautious—this option carries higher risk, but it can also come with higher rewards.
If you’re entrepreneurial, like us, this might be the move for you.
Remember, things you see being flexed on Instagram took time to earn, don’t be fooled by the facade.
4. Robo-Advisors:
If you’re new to investing and don’t know where to start, robo-advisors like Nutmeg can make investing easier.
These platforms use algorithms to manage your portfolio based on your risk tolerance and financial goals.
Plus, some have low minimum investments, making worth considering for students.
But, as always be cautious.
The Smart Spenders Take
At Smart Spenders, we’re all about taking control of your financial future.
The government might not always have the best options in place for students, but that doesn’t mean we’re powerless. You can still build a strong financial foundation—no matter what policies come and go - if you don’t have a victim’s mindset.
Some questions to think about before you head off:
Is putting money aside every month something you can sustain?
Are you really disciplined enough to stick to a budget, day in & day out?
If the above answers are no, it’s okay.
You’re doing the best you can, and that’s all that counts. Comparing yourself to others is a recipe for disaster. Take a moment to figure out if you have the time to take on another job, start a side hustle, or reduce your current expenses.
Stay tuned for more practical tips, real advice, financial tools, and strategies to help you navigate the sometimes confusing world of personal finance.
Note: We are continually improving, we’ll be posting as often as possible, and adding to previous blogs!
Just Starting Out
Welcome to our very first blog post! Great to have you here. :)
We haven’t gained major traction as of yet, but this is a pinch-me moment for us!!!
We’re beyond excited to have you here at Smart Spenders, where we’re all about changing how young people think about money, and financial literacy.
If you’ve ever felt like no one really taught you how to budget, save, or understand taxes, you’re not alone—and that’s exactly why we’re here.
Managing money isn’t just a skill; it’s a life necessity. Yet, many young people are left figuring it out on their own, often too late, and sometimes after they make an unfortunate mistake. That’s why Smart Spenders is dedicated to providing the tools and knowledge to help students make smarter financial decisions from day one.
Why Financial Education Matters - Now More Than Ever
You may have heard this before, but it bears repeating: the world has changed. With the rising cost of living, and student debt piling up, and an unstable global economy, and a crushing job market, financial education has never been more critical. Gone are the days when we could solely rely on our “grades to secure a bright future”.
We’ve all definitely heard that before.
Let’s be real, many of us didn’t learn about interest rates, credit scores, or even how to file taxes in school. Yet, these are the realities we face the second we step out into the real world.
That’s why we’ve made it our mission to bridge that gap.
Our goal isn’t just to hand you a textbook and wish you luck. We want to equip you with practical, actionable knowledge that you can use from day one—whether you’re still in school, just starting your career, or looking to make smarter choices with your hard-earned cash.
Who We Are: A Community That Cares
We aren’t a typical financial institution or a faceless organization.
Smart Spenders is a community-driven nonprofit led by graduates, for students. We understand the struggles firsthand because we’ve just lived them. Whether it’s figuring out how to budget your student loan, deciding if that night out is really worth it, or finding the balance between saving and enjoying your life, we get it.
What sets us apart?
You don’t NEED to ever pay for a subscription. We won’t hard-sell you a course or tease you with a free trial.
Financial literacy isn’t a one-size-fits-all, and we know this. We pair real-life mentorship with practical tools and online materials designed to empower young people not just give you information for you to absorb alone. (Unless, that’s what you want).
We won’t overwhelm you with technical jargon, but simplify and break down the basics so you can build a solid foundation of personal finance, and then join our investing course, having passed the personal finance tests with 100%.
Our Vision for the Future
Financial literacy should be recognised by the Department of Education.
But, lobbying, protesting and being rude to the government about it, is not our style.
In the long term, we hope to see financial education embedded into school curricula across the country.
Until that day comes, we’re here to do our part by offering free, accessible resources that everyone can benefit from. It’s not just about teaching the fundamentals of saving or investing, but also about enabling a mindset that prioritizes responsible spending, self-sufficiency, and long-term planning.
But we’re not stopping there.
Our vision extends beyond education. We want to cultivate a generation of financially savvy individuals who feel confident about their future, no matter their background or circumstances. Ambitious, we know ;).
How You Can Get Involved
Maybe you’re reading this because you’re passionate about learning how to manage your own money better or perhaps, you’re already financially savvy and looking to give back to the community.
Either way, Smart Spenders is here for you.
Whether you want to volunteer, learn from some vids, or simply follow along as we continue this journey, there’s a place for you in our community.
We believe that everyone has something valuable to contribute, and together, we can make financial literacy the norm, not the exception.
Final Thoughts
We started Smart Spenders with a simple yet powerful mission: to change the future of education. But this isn’t just about numbers or bank accounts or numbers IN bank accounts.
It’s about giving people the knowledge and confidence to take control of their lives, make informed decisions, and build a future they’re excited about.
So, welcome aboard. We’re just getting started, and we’re thrilled to have you with us.
Stay tuned for more tips, resources, and stories from students just like you.
& don’t mind these next few hashtags!
#smartspenders #financialeducation #students