Lack of workplace readiness amongst young people is becoming an epidemic. Recent research suggests that only 55 per cent think they can offer the skills employers want, while half believe they have the right work experience.
Starting their careers on the back foot affects not just young people, but the businesses they work for and the UK’s productivity.
One reason for this disconnect is inconsistency in education.
Our research shows that only 40 per cent of teachers are aware that financial education is already part of the curriculum. And without clear guidance or support on financial and enterprise education, schools are left to decide how, or if, they should deliver these crucial life skills.
As a result, many young people miss out, especially those already facing barriers to social mobility.
The government’s recently published curriculum and assessment review and skills white paper have started to address this challenge, recognising the need for stronger alignment between education and employability. However, both stop short of embedding financial and enterprise education across the post-16 phase.
Learning by doing
At Young Enterprise, we’ve seen how powerful hands-on learning can be.
Many students, especially those at risk of disengaging, are motivated thorugh ‘learning by doing’ – whether that’s earning while they learn, taking part in enterprise activities or getting real-world exposure.
These programmes not only teach knowledge, but build confidence, resilience and transferable skills.
In FE settings, applied learning is already central to delivery. Embedding financial capability and enterprise thinking into existing programmes, through the likes of simulated businesses, employer partnerships and community initiatives, give learners real-world context and connect their studies to the decisions they’ll make in work and life.
Take students on our practical ‘Start Up’ programme, aimed at those aged 18 plus, in HE or FE.
Recent award winners have included a team that aimed to end water scarcity by combining atmospheric water generation with renewable solar power energy to improve access to water.
Another group of psychology students offered a digital bereavement service, designed to help individuals create lasting memories of their loved ones.
From enterprise education to real opportunity
Enterprise skills such as innovation, marketing, finance and project management shouldn’t be reserved for business studies students. They should be immersed throughout the curriculum, showing how classroom learning connects to real careers.
Employers play a huge role in bridging this gap. By offering inclusive entry points, such as pre-apprenticeship programmes, mentoring or work experience, they can help young people from all disciplines take that all-important first step.
For those without professional role models at home, exposure to the workplace and hearing from relatable ambassadors can be transformational.
Moment for change
However, this isn’t something schools and employers can do alone. The government has an important role to play.
Now that the curriculum review and white paper have been published, attention must turn to implementation – how to profit from the vast wealth of resources already created by charities, often in partnership with financial services institutions.
The curriculum and assessment review shows that both children and parents place huge value on skills like budgeting, finance, problem-solving and creative thinking.
But while the report calls for consistency and coherence, it stops short of making financial education statutory at post-16.
Similarly, the skills white paper provides another chance to close the gap.
With the government aiming for two thirds of young people to move into higher-level learning, it is vital that financial and enterprise education is offered at this stage too.
Yet today, there is no universal offer for post-16 students, despite this being the point where many are stepping into independence for the first time.
Turning ambition into action
Financial education has been on the curriculum in schools for a decade, but without clear prioritisation or guidance, it has reached too few pupils.
Only 47 per cent of young people recall receiving meaningful financial education in school, and that needs to change.
Schools and FE institutions should be the place where firm financial foundations are built, supported by employers and underpinned by a consistent national approach.
From integrating budgeting and entrepreneurship projects into core subjects, to partnering with local businesses, there are many ways to embed real-world learning into the classroom.
Recent policies have set out a strong direction for technical learning, but the next step must be to extend that vision to financial and enterprise capability. These are the skills that give young people confidence, independence and resilience to thrive in the future of work.
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