Socio-Economic Inequality in Young People’s Financial Capabilities

Previous research has shown that the UK low levels of financial literacy by international standards, particularly among those in lower socio-economic groups. This may have an impact upon young people, with social inequalities attitudes, behaviours and skills perpetuating across generations. Using parent-child linked survey data from 3,745 families, we find sizeable people’s capabilities, aspects their mindset, behaviours. Sizeable differences are also observed education socio-economically advantaged disadvantaged children receive at school, how they interact parents about money. Parental interactions can account for part gap money confidence, management, connections, behaviours, but less so boosting abilities. However, no evidence schools driving capabilities.