The Missing Lesson: Financial literacy can help unlock university for under-resourced students

by Chloe Manuel

The Access Project’s Cost of Living and University Choices report highlights a concerning trend: financial worries are pushing talented students to rethink or even abandon higher education altogether. 

The problem isn’t just the rising costs—it’s the lack of financial education. Many students from wealthier backgrounds grow up with financial guidance at home, while under-resourced students are left to navigate student loans, budgeting, and university costs alone. This imbalance is significant: 15-year-olds from socio-economically disadvantaged backgrounds have the skill level of 11-year-olds from the most advantaged backgrounds. Consequently, the financial knowledge gap breeds uncertainty and forces students into tough choices: stay at home to save money, take on extra work that might impact studies, or skip university entirely. 

So, what’s the solution? We need stronger financial education, starting early and reaching the people who influence young people’s decisions—teachers, families, and advisers. 

Why financial literacy matters for university access

The Cost of Living and University Choices report makes one thing clear: financial literacy isn’t just about knowing how to budget—it’s about confidence in making informed choices. When students don’t understand university finances, they overestimate the risks and underestimate the support available. This leads to: 

• Fewer under-resourced students applying to university due to fear of debt;

• More under-resourced students choosing degrees based on salary potential rather than interest or ability;

• A growing divide in who moves away for university, with students from lower socio-economic backgrounds feeling forced to stay at home to save money;

• Increased dropout rates, as students struggle to balance part-time work and academic demands.

Financial literacy can’t fix the cost-of-living crisis, but it can equip students with the tools to navigate it.

What needs to change?

The Access Project is making three key recommendations to help address the financial literacy issue in schools across the country.

Improve financial education in the national curriculum

Handling university costs, student loans, and budgeting should form part of UK Finance’s financial education curriculum roadmap. Financial education should be mandated in all schools, with a system of monitoring and assessment to ensure accountability and quality.

Increase funding for financial literacy training programmes for educators

Teachers should be trained in the delivery of financial education, with a specific focus on how to support students to feel confident about university finances. Additionally, educators and advisors should have access to accurate and relevant resources to supplement their delivery.

Targeted outreach by sector specialists

A selection of banks and finance sector specialists offer successful financial education programmes, such as Barclays, HSBC Money Heroes, and NatWest Money Sense. These organisations should collaborate with universities, the government, and charities working with under-resourced young people to answer demand and strengthen their work.

The decision to go to university shouldn’t be dictated by financial uncertainty. We must bridge the financial literacy gap so that all students—regardless of background—can make informed, confident choices about their future. 

Therefore, it is imperative that educators and schools push for more robust financial education in the curriculum, and banks and financial organisations focus on outreach programmes and clear, accessible resources. Policymakers should also listen to demand, and continue to fund teacher training and financial literacy programmes that equip young people with the skills they need to thrive.

Financial literacy is power. Let’s make sure all young people have it.

The Access Project helps young people from under-resourced backgrounds achieve their academic potential and place at top universities. By donating to our programme or volunteering with us, you’re helping the country’s most under-resourced young people find their way to a brighter future.