About £7million is to be ploughed into projects to help school kids and students, among others, to learn how to manage their money.

Tens of thousands across the UK are to receive help through the Money Advice Service’s What Works Fund initiative.

There will be funding for 26 projects, with more to follow in the coming months. As well as younger people, the schemes will aid a range of others, from working age adults to those in retirement.

Levels of financial capability remain “stubbornly low” – MAS stated - with four out of ten adults not in control of their finances and around 16.8 million working age people have less than £100 in savings, according to its research.

But little evidence exists on the best way to address this issue, officials said. The What Works Fund aims to build evidence and to establish the interventions which best help people to manage their money. Ultimately, the aim is to scale up the most effective projects in order to improve the levels of financial capability of millions of people across the UK.

David Haigh, director of financial capability at the Money Advice Service, said: “This is the first time that we have funded projects to gain evidence about how best to help people with their money.

“By increasing the effectiveness of what we do, we can better target our collective efforts, thereby improving the financial capability of millions across the country.”

The projects also target segments of society who could be vulnerable to financial difficulty, including those with mental health issues, those at risk of being homeless and people with long term illnesses.

Caroline Rookes, chief executive for the Money Advice Service, said: “There is an urgent need to help people gain the skills and confidence they need to make good decisions about their money day to day. The insights from these projects will be vital, helping organisations to channel their efforts in the right places and to fund and deliver interventions that we know make a real difference.

“This will also underpin the money guidance commissioning work to be carried out by the new money guidance body which will replace the Money Advice Service.”