7 April 2025, 13:55 | Updated: 7 April 2025, 15:19

By Wander Rutgers

Investing should be like Lego.

You start with the basic building blocks, cash ISAs, then stocks and shares, before considering riskier moves like crypto, FX trading, or even private market investment into startups. Right now, however, too many young investors are missing this first crucial step, or are skipping investments altogether. A lack of financial literacy is holding them back.

The Financial Conduct Authority (FCA) Chair highlighted this issue to the Treasury Select Committee just this month. He pointed out that financial literacy problems start in school. Many young people struggle with basic concepts like percentages and compound interest, and this lack of knowledge follows them into adulthood, shaping investment choices that could cost them in the long run.

The data backs this up. Research from the Global Financial Literacy Excellence Centre shows Gen Z has the lowest financial literacy of any generation, scoring just 43% on the P-Fin Index (a barometer to assess financial awareness). That’s a major red flag.

Meanwhile, financial institutions have not done enough to make investing easier to understand. The FCA Chair also called for “improved digital journeys” so investors can access the right financial products with confidence. Right now, Gen Z isn’t being met with enough........

© LBC