Children as young as seven are grappling with financial anxiety, according to a new study that paints a stark picture of the economic pressures facing the next generation.
Research conducted by KidsKnowBest, a global agency specialising in youth insights, reveals that nearly half (46%) of children aged 7 to 14 are worried about money and their future. One in four are explicitly anxious about meeting basic needs.
The study, which combined a quantitative survey of 1,000 children with in-depth interviews, found that 55% said money affects their overall happiness. Meanwhile, 38% said it causes them stress, and half reported feeling pressure to save.
Despite these pressures, a clear appetite for practical financial education is emerging.
While 60% of children believe they understand money, a candid one in three (33%) admit they are unsure what to do with it. The findings reveal a disconnect between early financial engagement and actual financial literacy. Children are increasingly participating in economic life – through chores, online purchases or small-scale selling – yet many lack the knowledge to navigate it confidently. Though 44% still use a traditional piggy bank, 36% now use online banking apps.
ADVICE GAP
The report also points to a significant advice gap. Parents remain the primary source of financial guidance, cited by 88% of respondents, but fewer than half (42%) believe their parents are good with money.
Despite the digital-native status of this generation, only 41% say they trust financial advice found online, even though 47% have sought information there. A quarter have made online purchases without telling their parents.
EDUCATIONAL FAILINGS
Formal education is also falling short. Over half (55%) of those surveyed feel schools are not doing enough to teach financial skills. One in five say they have received no financial education at all, and just 19% feel they have learned ‘a lot’ about money in school.
In terms of how they would prefer to learn, the overwhelming response was for real-world, human-led instruction. A majority (87%) favoured practical money lessons over digital sources. Some 63% want to learn more from their parents, while 47% would like greater input from schools. By contrast, only 20% expressed interest in learning through social media apps, and a mere 14% looked to influencers.
Joel Silverman, chief executive of KidsKnowBest, said the notion of a “care-free childhood” has become increasingly distant for today’s children.
“Our comprehensive research shows that children can’t be divorced from the anxieties their parents may be feeling in a world of financial insecurity, and continuing cost of living pressures,” he said.
“Yet, critically, this anxiety isn’t shutting them down. Instead, it’s sparking a deep curiosity and a hunger for practical, human-led learning about money.”
“This is a critical opportunity
for the UK’s financial
sector to step forward”
Calling for an urgent response, Silverman said financial institutions, educators and policymakers now have a clear mandate. “This is a critical opportunity for the UK’s financial sector to step forward. By providing accessible, relevant, and practical financial education, we can empower this generation, transforming their anxiety into informed agency and building a more financially resilient future.”
