Creditspring, the subscription-based credit provider, has joined forces with London South Bank Colleges to launch Managing Money, a financial education initiative aimed at equipping young adults with the understanding and self-assurance they need to handle their finances as they enter adulthood.

The initiative will be delivered through a series of talks for students. These will address the routine money decisions young people face once they start earning, including reading a payslip, setting a budget, understanding credit and repayments, and knowing where to turn when finances become hard to manage.

The collaboration is a response to what Creditspring sees as a clear shortfall in financial readiness. The company’s own research indicates that many young people about to gain more independence do not fully grasp key borrowing terminology or what happens when a payment is missed.

Among those aged 18 to 24, only 45% said they understood APR and 46% said they knew what a minimum repayment is. Around 52% of this group were aware that a missed loan repayment could harm their credit score, against 83% of respondents over 55. In addition, 35% believed a 0% interest offer definitely carries no extra costs.

The survey also highlighted a hesitance among younger people to seek help at an early stage. Just 20% of 18 to 24-year-olds said they would get in touch with their lender if a repayment became difficult, compared with 49% of people over 55.

Strain on budgets extends beyond bills and debt. According to the research, 91% of Gen Z respondents, defined as those aged 14 to 29, said social commitments placed pressure on their finances.

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