56% of Young Adults are Still Unsure About ISAs! Here’s The Rundown!

Ruby Layram 5th Feb 2026 No Comments

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Financial literacy in the UK is facing a worrying decline, especially among younger adults.

A recent nationwide survey of 2,000 Brits by Shepherds Friendly reveals that Gen Z—those aged 18-24, are the least financially literate and confident generation yet.

In particular, over half of young adults are unsure about key financial products such as ISAs, pensions, and investments, highlighting an urgent need for better money education and practical guidance.

A pretty good reason to sign up to our course!

Young Adults Struggle the Most

The survey found that only 9% of 18-24 year olds passed a money literacy test, making them the least knowledgeable age group. Confidence is equally low:

56% of young adults don’t understand pension planning.
55% aren’t confident choosing the right ISA.
50% feel uncertain about retirement planning.

This knowledge gap is taking a toll on wellbeing.

Nearly half of young adults report that finances negatively impact their mental health, and around 44% say trying to understand their finances makes them stressed.

Alarmingly, 40% admit losing sleep over financial worries!

Read: How to get into investing in 2026

A National Trend

It’s not just young people who struggle. Across all age groups, the survey revealed a declining trend in financial literacy.

Only 23% of Brits passed the test, down from 49% in 2024. Men scored slightly higher than women (29% vs. 17%), and regional differences were significant: Nottingham topped the chart with a 33% pass rate, while Leeds lagged at 15%.

Financial Education: A Growing Call

The lack of confidence is prompting strong calls for financial education:

Nearly 60% of young adults believe personal finance should be taught more in schools.
59.5% say schools should teach saving and investing.
42% blame their financial struggles on insufficient education.

Derence Lee, CFO of Shepherds Friendly, stresses the importance of improving financial literacy:

“Understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about your money. Even small steps, like exploring online learning tools, using budgeting apps, or speaking with a qualified financial adviser, can make a real difference.”

The survey highlights a critical need: young adults are navigating complex financial decisions with limited knowledge and confidence.

ISAs, pensions, and investing are areas where uncertainty is high, making education and practical guidance vital. By taking proactive steps, whether through learning tools, apps, or expert advice, young people can start building financial confidence, avoid long-term pitfalls, and take control of their financial future.

Introducing MoneyMagpie’s Shiny New Course!

If the survey has shown anything, it’s that many young adults feel uncertain about investing and saving, especially when it comes to ISAs and understanding how to make their money work for them.

MoneyMagpie’s new Investing Course is designed to bridge that gap.

It provides clear, step-by-step guidance on topics like ISAs, stock market basics, and long-term financial planning—all explained in plain English. Whether you’re just starting out or looking to build confidence in your investment decisions, this course gives you the tools and knowledge to take control of your financial future.

SIGN UP FOR EARLY ACCESS TO OUR COURSE

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