Creditspring partners college on student money lessons

Creditspring has partnered with London South Bank Colleges to launch a financial education programme for students, following survey findings that highlight gaps in younger adults' understanding of borrowing and repayments.

The programme, called Managing Money, will be delivered through a series of student talks on payslips, budgeting, credit, repayments and where to seek support when money becomes difficult to manage.

It is aimed at young adults preparing to earn and manage their own money more independently. The course is designed to give students practical information before they begin making borrowing decisions on their own.

Research cited by Creditspring suggests limited understanding of key lending terms among people aged 18 to 24. Fewer than half of respondents in that age group said they understood annual percentage rate, at 45%, or the meaning of a minimum repayment, at 46%.

Just over half, 52%, said they knew a missed loan repayment could damage their credit score, compared with 83% of people aged over 55, highlighting a marked gap between younger and older borrowers.

Another finding pointed to confusion over advertised borrowing costs. More than a third of 18 to 24-year-olds, 35%, believed 0% interest definitely meant there were no additional costs.

Help-seeking gap

The data also showed hesitation among younger borrowers when repayments become difficult. Only 20% of 18 to 24-year-olds said they would contact their lender if they were struggling with a repayment, compared with 49% of over-55s.

That reluctance sits alongside broader financial strain among younger consumers. Among Gen Z respondents aged 14 to 29, 91% said social plans had put pressure on their finances.

To manage those costs, 25% said they had taken on extra work or shifts, 22% had sold personal belongings and 18% had skipped meals. The figures suggest financial pressure on younger adults extends beyond formal borrowing and household bills.

The partnership also touches on a wider debate in consumer finance about the role lenders should play in financial education. As digital lenders and other non-bank providers expand their reach, questions have grown over whether access to credit should be accompanied by clearer guidance on repayment terms, borrowing costs and the consequences of missed payments.

Creditspring operates a subscription model for short-term borrowing and says it has provided more than GBP £500 million in credit through more than one million loans since launch.

Under that model, members pay a fixed monthly fee and can access up to two no-interest loans a year. Creditspring presents the structure as an alternative to more conventional forms of short-term borrowing, although the new programme focuses on financial literacy rather than product use.

The two organisations had already worked together through a careers event involving Creditspring staff and students at the college group. The new programme builds on that relationship with a more formal focus on personal finance.

Neil Kadagathur, Chief Executive Officer and Founder, Creditspring, said: "Financial confidence should not be something people have to learn through costly mistakes. As young adults begin earning and making decisions independently, understanding the basics of credit, repayments and asking for help can make a real difference to their long-term financial stability.

"Creditspring's mission is to improve financial stability across the UK. We believe subscription finance can offer a safer, simpler and more affordable way for people to access short-term liquidity when they need it, but access alone is not enough. People also need clear, practical education that helps them understand the decisions in front of them and stay safe as they build their financial future."

London South Bank Colleges said the programme fits with its work preparing students for employment and adult responsibilities. The college group described financial understanding as part of readiness for work rather than a separate issue.

"Preparing students for the world of work also means helping them prepare for the financial responsibilities that come with it. The Managing Money programme gives our students practical, accessible information at a point when it can have a lasting impact. We are delighted to work with Creditspring on a programme that puts confidence, informed choices and financial wellbeing first," said Alicia Maker, Careers Lead, London South Bank Colleges.

The consumer survey findings cited by Creditspring were based on research conducted by Censuswide among UK consumers, including a sample with at least 500 Gen Z respondents.