Helping young people stop the snowball effect of poor financial wellbeing

Beatrice Nicastro

Communications Executive, MyBnk

From more expensive weekly shops to higher energy bills, the cost of living crisis has affected many aspects of life, and it has taken a toll on the financial wellbeing of young people.

MyBnk is a charity that delivers expert-led financial education programmes to 7 to 25-year-olds in UK schools and youth organisations. Together with young people, we have created innovative, high-impact and high-energy workshops that bring money to life.

Financial pressures on young people

The cost of living crisis is a major worry for over half of young people. Yet, according to research from MyBnk and Compare the Market, only two of five young adults are financially literate. In addition, our 2022 research found that almost 70% of UK care leavers feel anxious about money, and four in five want more help managing their finances.

Without the financial safety net of friends
or family, mounting debts can quickly lead
to eviction and even homelessness.

Snowball effect of poor financial wellbeing

Unfortunately, the consequences of poor money management and low financial literacy can quickly multiply. For example, we hear of young people who forget to take a meter reading when moving into a property, take on debt from a previous occupant and then use high-interest loans to try to pay off their debt. This leads to a vicious cycle of debt that’s difficult to get out of.

For young people in challenging circumstances, such as young people leaving local authority care in the UK, the consequences of poor money management can be particularly severe.

Without the financial safety net of friends or family, mounting debts can quickly lead to eviction and even homelessness. These financial issues can then have further negative effects on other areas of life, including mental and physical health, relationships and self-confidence.

Campaign promoting financial literacy

MyBnk’s festive campaign for 2023 aims to tackle the snowball effect of poor financial wellbeing.

The festive period can be a particularly challenging one in terms of finances. Pressure to spend can quickly turn into debt and money worries that snowball into the New Year.

The ‘Stop the snowball’ campaign encourages young people to resist overspending and proactively deal with any difficult financial situations they find themselves in — before they snowball out of control.