Digital money, real risks: Why financial education can't wait

Money has transformed from something we hold to something we see on screens. For earlier generations, learning about money meant handling coins and notes; today's young people mostly encounter it as numbers online. This shift creates both opportunities and risks for children growing up in a digital economy.

The scale of change

In the United Kingdom (UK), 58 per cent of eight to 17-year-olds spent money online in the past month, according to UK Safer Internet Centre 2025 research. Nearly half (46 per cent) have been scammed online, though only nine per cent actually lost money. Many experience regret over digital purchases, with 32 per cent regretting in-game purchases and 43 per cent regretting purchases on social media. As financial technology reshapes how young people manage money, the disappearance of physical currency erases the natural 'pain of payment.' For children whose impulse control is still developing, this increases vulnerability.

Financial and entertainment activities now overlap, making spending feel like play. UK Safer Internet Centre reports that around six in 10 (58 per cent) of eight to 17-year-olds spend money within online gaming or social platforms using persuasive features such as personalised ads, countdown timers, and social pressure. Children say these features make it difficult to stop spending. Financial vulnerability is also uneven: fifteen-year-olds from disadvantaged backgrounds test four years behind wealthier peers in financial literacy, and these inequalities risk deepening as digital finance becomes standard.

The education gap

A 2025 inquiry by the All-Party Parliamentary Group on Financial Education found that no UK nation provides sufficient financial education in schools. Over half of students leave school without meaningful financial learning. Curricula still focus on traditional concepts like compound interest but rarely address online scams, in-game purchases, or cryptocurrency. Financial education largely disappears after age 16, precisely when teenagers begin making significant financial choices. Research by the Money and Pensions Service found little evidence of effectiveness in current programmes and called for more hands-on learning.

A turning point for England

In November 2025, the government accepted Professor Becky Francis's Curriculum and Assessment Review, marking a significant policy shift. Financial education will become compulsory in English primary schools from September 2028, as part of a new statutory requirement to teach Citizenship from key stage one. Under the Children's Wellbeing and Schools Bill, all state schools, including academies, will follow the national curriculum.

Education Secretary Bridget Phillipson noted that it has been over a decade since the curriculum was updated. The review found that only one in three children could recall learning about money in school and finding it useful. Martin Lewis, founder of MoneySavingExpert.com, welcomed the changes while cautioning that 'intention's nowt without proper implementation — teacher training, resources for schools and enthusiasm.'

Where children learn about money

Most financial learning happens informally through family conversations, online content, and digital experiences. In the UK, 62 per cent of parents worry about their children's exposure to financial harms online but feel ill-equipped to guide them. The Money and Pensions Service's Talk, Learn, Do workshops show that simple family conversations can make a lasting difference, sometimes leading to 'reverse socialisation' where children teach parents safer online habits.

Young people also learn from influencers on YouTube and TikTok and participate in virtual economies within games. However, in-app purchases and 'loot boxes' replicate gambling-like behaviours, encouraging impulsive spending. At the same time, child-friendly financial platforms allow young users to practise managing money under parental oversight, and evidence shows that 'just-in-time' learning at key decision moments is highly effective. According to NatWest's 2024 Pocket Money Index, traditional allowances make up only 14 per cent of the average child's income, with many earning through online micro-businesses or gig-style work.

Innovative approaches

New initiatives across the UK aim to help children navigate digital finance, though coverage remains inconsistent. The PSHE Association offers lesson plans on online financial harms and social media influences. The GoHenry Financial Education Manifesto called for mandatory financial education from primary level, recommendations now partially reflected in government policy. In Scotland, the Financial Education Forum coordinates efforts from credit union savings clubs to employability courses. A 2024 UK-wide mapping found 110 financial education programmes, demonstrating innovation but also fragmentation. Internationally, UNICEF's FinTech and Children project promotes child rights by design in digital financial services.

Building solutions

Preparing children for a digital financial world requires coordinated action across government, educators, industry, and families. Digital finance must be integrated into core curricula, covering online consumer rights, digital fraud, and persuasive design. Financial learning is most effective when delivered at key life moments: opening a first bank account, receiving a paycheck, or starting university. Digital platforms should improve spending management tools and cost transparency. The UK's Age Appropriate Design Code could expand to cover financial services, ensuring youth-friendly design standards.

The stakes

Young people see the need: 84 per cent of UK children want financial education in school, rating it as important as traditional subjects. In consultations, young participants admitted believing that 'money just magically appears when we grow up.' A financially capable generation can avoid debt traps, resist fraud, and seize opportunities, strengthening economic stability and social cohesion.

The tools to equip children with financial skills exist. The evidence is clear. England's decision to make financial education compulsory in primary schools from 2028 represents a welcome turning point, but the challenge lies in effective implementation. What remains essential is the collective will to ensure every child gains the knowledge, skills, and confidence to thrive in a digital financial world.

For more on financial technologies and children's well-being, visit UNICEF's project page.