Turning 18 is daunting for any young person. But bills, rent, work and managing money usually arrive gradually, often cushioned by family guidance and informal advice. Recent UK research shows how central this support is: nearly seven in ten (68%) Gen Z young adults expect financial help from the “Bank of Mum and Dad” for major expenses, and almost two-thirds (64%) turn to parents first for financial advice, far more than from formal financial institutions. (Charles Russell Speechlys, 2025)
For care-experienced young people, the options often look very different. The step into independence can feel less like a milestone and more like a cliff-edge.
A system that leaves too many behind
Our latest analysis of outcomes for care-experienced young people in Essex highlights some of the poorest indicators in the UK: 40% of care-experienced young people (aged 17–21) in the region are not in education, employment, or training, higher than the national average of 37%. Only 20% live independently, below national (27%) and regional (22%) levels, with 10% in unsuitable accommodation. These figures have seen little improvement since 2020. (Money Ready, 2025)
More generally, a Barnardo’s report on care‑experienced young people found that 82% were struggling to afford food, 64% had seen their levels of debt increase, and 31% said they were at risk of homelessness amid rising costs and a lack of financial support. (Barnardo’s, 2023)
Finally, our own research with local authorities and care-experienced young people from across the UK found that there was a gap between provision and take up, where nearly all local authorities told us that they provide some form of financial education, but just over half of care-experienced young people recall receiving basic support with budgeting. (Money Ready, 2022)
While these outcomes do not affect every care-experienced young person in the same way, they point to structural challenges that can disproportionately affect this group during the key transition to adulthood.
This is not about poor choices or personal failure.
It is about unequal starting points.
Why financial education matters
Financial education for all young people in the UK is inconsistent or absent all together, but for care-experienced young people, the impact is often magnified: mistakes carry higher stakes when there is less room to recover.
Care experience is far from uniform. Some spend most of their childhood in care, while others enter the system as teenagers or for shorter periods. What unites many care leavers is that they face major financial responsibilities earlier, often without the informal safety nets most young adults rely on. Only around one in five care leavers aged 19–21 live with parents or other family, compared with roughly three in five 18–25-year-olds in the general population. (Become, 2024)
When a local authority has acted in place of a parent, stepping into independence can be abrupt, with high expectations placed on young people still learning the basics of adult life. More than a third report leaving care before they felt ready, with money-related challenges the most common reason for feeling unsafe. (Gov.uk, 2022)
“It’s hard to break habits that you already have. If you’re not taught about managing money, you’re going to get into a habit of ‘I’ve got this much in my bank’ and it will be gone in the next hour.”- Care-experienced young person, West Midlands.
“We’re not getting the same support as a mum and dad would give their son or daughter, so we just need the system to kind of work together.” – Care-experienced person, London.
This is where targeted, practical financial education can make a meaningful difference.
Through our partnership in Essex, Money Ready and Saffron Building Society have delivered tailored financial education to over 200 young people. The impact of our programmes is clear: 94 per cent reported improved financial knowledge, 89 per cent felt more confident managing money, and 87 per cent said they intended to change how they manage finances. Beyond skills, young people gain confidence, agency, and control over their futures.
The role of financial institutions
Banks and building societies are often among the first formal systems care leavers navigate independently – opening accounts, managing payments and understanding credit. These interactions highlight the broader responsibility of financial institutions to support financial wellbeing and reduce harm.
Saffron Building Society’s partnership with Money Ready demonstrates a complementary approach: by investing in community-based financial education and sustained local collaboration, they help young people develop the skills and confidence they need to navigate adulthood successfully. This kind of long-term, locally rooted support should be the norm, not the exception.
What needs to change
Our research points to three practical steps:
- Start earlier and deliver consistently: financial education should run throughout the care journey, not only at crisis or leaving points.
- Stronger partnerships: local authorities, charities, and financial providers must work together to link education with real-world transitions such as housing, benefits, and employment.
- Embed education in real-life moments: understanding a payslip, managing rent, navigating credit, and making informed borrowing decisions.
These are achievable, evidence-informed actions that can be tested locally and scaled nationally.
A call to action this Care Day
If care leavers are to take on adult responsibilities earlier than many peers, we have a shared responsibility across government, financial services, and civil society to ensure they are properly prepared.
When the state acts as parent, it must also teach how to manage money, stay financially safe, and build a secure future.
And if the state is the parent, then preparing young people for financial adulthood is not optional – it’s part of the job.
Our policy and advocacy
Discover how we’re driving national change in financial education and how you can support us.