The UK’s first-ever programme to improve young people’s access to bank accounts and strengthen financial literacy will be unveiled today.
Scottish Financial Enterprise chief executive Sandy Begbie will launch the programme, backed by Royal Bank of Scotland and the Money and Pensions Service, at a Lanarkshire school.
Mr Begbie says: “Budgeting and financial literacy has fallen off the radar over recent years and financial education is a key part of a productive workforce.
“We’re hoping financial education will be embedded in the new curriculum. But we are not waiting for that and getting on with this pilot.”
He believes early financial education is important for those setting up in business and for better preparing those wanting to take out things like mortgages and insurance and understanding how financial institutions work.
The pilot is being launched at Larkhall Academy in South Lanarkshire and Campbeltown Grammar School in Argyll and Bute, with RBS acting as the first partner bank. Bank of Scotland is expected to take part as more schools join the pilot. Other banks are being invited to participate in future phases of the project.
It will initially target a mix of urban and rural communities, before being rolled out to more schools later in the year. Pupils taking part will receive practical, hands-on financial education over a multi-week programme, covering how money works in the real world and helping to demystify the process of engaging with banks and other financial institutions.
According to the Financial Conduct Authority’s Financial Lives Survey, in May 2024 around 2% of adults in Scotland were unbanked – equivalent to roughly 100,000 people. The cost of not having access to a bank account is estimated at £598 per year through higher bill payments and fees.
Recent research from Young Scot also found that only 3% of young people would go to a bank first for advice, while 49% feel uncomfortable engaging with banks. More than half of 7–17-year-olds are not receiving a meaningful financial education at school.
Following the first phase of the pilot, feedback will be gathered from pupils, parents and teachers to inform a wider rollout in August, aligned with the start of the new academic year.
Mr Begbie added: “As outlined in our sector growth strategy, Scotland’s financial services sector has a responsibility not only to support economic growth, but to make sure that growth is inclusive. This programme – a UK first – has the potential to become a practical blueprint for ensuring no young person in Scotland is left behind as our economy becomes increasingly digital and cashless.”
Judith Cruickshank, Scotland board chair, Royal Bank of Scotland, said: “Helping young people to make the right choices about their money is essential for building financial resilience across our society and creating solid foundations for growth.”
Nikhil Rathi, CEO of the Financial Conduct Authority, said: “I very much welcome SFE’s leadership and commitment to address this and its focus on equipping young people with the knowledge and support they need to manage their financial lives effectively.”
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