New research1 from Virgin Money reveals the importance of early financial education and positive money management habits.
The findings highlight that while younger generations, such as Gen Alpha, are often portrayed as being consumed by social media trends, their financial concerns run much deeper. While 54% of 11-17 years olds reported that social media makes them feel pressure to buy unnecessary items, rising living costs are also a significant source of worry for this age group.
Over half (54%) of young people are increasingly troubled by how the rising costs of things like food and bill payments are impacting their families and friends, and 52% are concerned about their ability to afford household bills in the future. These financial worries underscore the broader economic challenges facing today’s youth, reflecting a generation that is not only navigating the pressures of social media but also the realities of financial insecurity.
The research shows financial pressures facing young people are taking a serious toll on their mental health. 30% of 11–17-year-olds report feeling anxious about finances, with 20% feeling stressed and 17% reporting that they feel depressed due to money worries. The situation is even more pronounced for older generations, where over half (52%) of adults report that they feel anxious, 45% stressed, and 27% are struggling with feeling depressed about financial concerns.
These findings show how important it is to create a positive relationship with money from an early age, and 84% of 11–17-year-olds believe that more financial education would reduce their worries about the future, while 92% of adults agree that better financial education as a child would help people worry less about money management as an adult.
As part of Virgin Money’s commitment to supporting the mental health of young people, the company has partnered with leading mental health charities, Mind and SAMH (Scottish Action for Mental Health). This partnership aims to provide essential resources and support for those struggling with financial worries, ensuring that they have the help they need to manage their mental well-being alongside their finances.
Virgin Money recently introduced the M Power Account, a new account designed to empower young people (aged between 11 and 17 years old)* with the tools they need to manage their finances effectively and to encourage them to build financial independence from an early age. The M Power Account offers a range of features to help Gen Alpha develop a healthier relationship with money, including a dedicated app and a linked savings account with savings pots that help users develop healthy financial habits.
James Peirson, General Counsel and Purpose Officer at Virgin Money said “Our research highlights the significant financial pressures young people are facing today, which are not only impacting their wallets but also their mental wellbeing.
“Through our partnership with Mind and SAMH we’ve reinforced our commitment to improve the support available for people experiencing financial worry. We provide essential resources, including our new signposting guide that includes information on the types of help available in the UK for anyone who may want or need additional mental health support, and are developing a specialist training programme for all frontline colleagues.”
Andrew Berrie, Head of Corporate Partnerships at Mind, said: "Money and mental health are closely connected. Worrying about money can make your mental health worse and poor mental health can make managing money harder. This research highlights the growing negative impact of rising living costs on young people's mental health.
"We’re proud to partner with Virgin Money and SAMH to offer resources and support that help young people manage both their finances and mental wellbeing. In these challenging times, it's more important than ever that they receive the support they need."
Jo Anderson, Executive Director of Influence and Change at SAMH (Scottish Action for Mental Health) said: “Young people face enormous challenges across many aspects of their lives – housing, cost of living, education, employment – which can impact significantly on their financial wellbeing. By listening to young people, this important partnership with Virgin Money is tackling this head on and improving support for young people who experience financial worries. We are proud to be part of this exciting work.”
Notes to Editors
* A parent or guardian needs to apply for the M Power account for their child. Parents/guardians need to have an eligible Virgin Money current account and be registered for the Virgin Money mobile banking app. Children need to be a UK resident, aged between 11 and 15 at the time of application. They also need to have their own smartphone and have a valid form of ID, such as a passport.
1About the research
Research carried out with 1,000 children aged 11-17 by OnePoll in August 2024
Research carried out with 1,000 adults aged 18-30 by OnePoll in August 2024