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