Universities teach critical thinking. Why not financial literacy?

For many students, university is the first time they have complete control over their own money. Suddenly, they are paying rent, buying groceries and deciding what that leaves for the next big night out. It is an exciting step towards independence – but stumbles are common and falls are not unknown.

The Financial Conduct Authority’s most recent Financial Lives survey shows that, among UK adults aged 18 to 24, 28 per cent reported low confidence working with numbers, and 29 per cent had poor financial numeracy. And although most of those people are probably not students, some of them probably are.

Across the Atlantic, a recent personal finance survey by the Global Financial Literacy Excellence Center suggests that financial literacy is particularly low among Generation Z. On average, Gen Z correctly answered only 38 per cent of the financial literacy questions in 2026, compared with 46 per cent for Gen Y, 49 per cent for Gen X and 54 per cent for baby boomers.

Universities are not only places where students gain technical knowledge for employment. Students are also expected to learn skills beyond their subject, such as academic writing, communication, critical thinking, digital literacy and employability, so that they can become responsible citizens who can contribute to society and the economy.

This is another reason why managing money should be one of those required skills. Recent research found that a 10-percentage-point increase in financial literacy correlates with a 0.3-percentage-point increase in GDP. The same evidence also connects financial literacy with healthier household finances, including better loan affordability and lower debt-to-income ratios.

Over the past year, we had the opportunity to test the impact of financial literacy training among university students. With funding from the British Council, we designed and delivered a financial literacy programme for students in Turkey. The aim was simple: to equip them with practical knowledge they could immediately apply to their own financial decisions.

Demand was much higher than expected. Our initial plan was to pilot the programme with about 40 students but more than 1,000 registered. In the end, we delivered the training to 460.

Before and after the programme, students answered five standard financial literacy questions. These questions, known as the “big five”, are widely used around the world to assess understanding of core financial concepts. The results were striking: after a three-hour training session, correct responses increased roughly 25 per cent.

This should not be overclaimed. The effects of short financial education interventions can decline over time. But even with that caveat, the results suggest something important: students can quickly improve their financial literacy when universities make space to teach it. The programme also led to more lasting change; from September 2026, the university will run an elective financial literacy module open to all students.

One common argument against suggestions that universities mandate modules on topics everyone should know about – such as climate change or democracy or AI – is that curricula are already crowded. That concern is understandable. But financial literacy does not require every student to complete a semester-long finance module. Short courses or microcredentials could offer a practical alternative. A few hours of structured learning could have a lasting impact.

Some universities have already recognised this opportunity. At Stanford University, for example, students can take an introductory module on financial decision-making covering budgeting, credit, investing, insurance, housing and taxes. The module uses practical case studies and real-world financial decisions rather than abstract theory, reflecting the idea that financial education is a life skill rather than specialist knowledge.

Another option would be to link financial education more closely to employability. Career services already help students prepare CVs, applications and interviews. They could also help them understand starting salaries, taxation, budgeting after graduation and long-term financial goals.

Universities could also weave personal finance into existing courses where relevant. Business students might analyse investment decisions, while engineering, healthcare or arts students could discuss salaries, pensions, taxation and self-employment relevant to their professions.

Interactive budgeting simulations, games and AI-powered financial coaches could make learning more engaging and allow students to practise financial decisions in a safe environment. Imagine asking an AI tutor whether you can afford to move into a new flat or how increasing your pension contributions today might affect your finances in 30 years. These conversations can make financial concepts immediate and relevant.

Students often learn best from other students. So another option would be for universities to train financial literacy ambassadors who run workshops, share budgeting strategies and signpost support services. Peer-led sessions may feel less intimidating than formal lectures.

We would never send graduates into the workplace unable to write a professional email or analyse evidence critically. We should not send them into adulthood unable to understand the financial decisions they will make for the rest of their lives.

Sercan Demiralay is principal lecturer in accounting and finance at Nottingham Trent University. Hatice Gaye Gencer is a professor in the business school at Yeditepe University, Turkey.