Over the course of the last nine years, our partnership with Money Ready has been helping prevent homelessness by teaching young people vital money management skills at the point they need them most: when they are about to move into independent accommodation.
To coincide with World Homelessness Day on 10 October, Money Ready launched new research last week funded by Berkeley Foundation. By bringing together national polling, council data and the voices of young people themselves, the research gives us a better understanding of the challenges they face and the support that could make a real difference.
The report looks at the link between financial literacy and housing insecurity in the UK. It tells us that young people want to learn about finances, but nearly one in four has never received any financial education at all. They’re currently navigating not only a cost-of-living crisis but also a housing crisis, so it’s vital that they are equipped with the knowledge and tools to make informed decisions.
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More than a third (35%) say they felt unprepared for the financial side of living independently for the first time
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70% of young adults have used some form of credit or borrowing specifically to help pay rent, mortgage, bills or other essential housing costs.
The research makes the case that financial education can play a crucial role in preventing homelessness, and highlights that millions of young people are entering the housing market without the basic financial skills needed to avoid a crisis.
We know that financial education alone can’t address the wider pressures driving the housing crisis, from affordability and housing supply to the cost of living. But the report makes a compelling case for financial capability to play a stronger role in homelessness prevention and sets out the steps needed to make it happen.
Read the full report to see Money Ready’s recommendations for policy makers.