Is Financial Education Key To Avoiding Money Troubles in Later Life?

Published on 1 January 1970 by Raffick Marday

Over half of Britons in their late 20s and early 30s believe they are not equipped to deal with their finances, according to a new study looking into consumer intentions and trends in the UK.credit cards

The survey, carried out by Axa's Big Money Index, revealed that the blame is being laid at the door of parents, for failing to teach their children how to manage their own money.

Commenting on the findings, Axa Wealth savings and pensions expert, Andy Zanelli, said: “Consumers tell us that more financial education and personal responsibility is needed to regain control, and that parents are largely to blame for lack of finance skills."

The UK has the highest level of personal debt in relation to the total size of the economy in the developed world.

Consumer debt more than doubled from £600bn in 2000 to reach a figure of over £1.45 trillion by 2008 – and it seems a lack of financial education could be partly to blame.

The research found that 38% of people of all ages wanted personal finance to be taught in schools, a plea which has since been fulfilled.

Last month, Education Secretary Michael Gove announced a public consultation on the draft National Curriculum with the intention of integrating financial education into mathematics and citizenship education lessons.

The Personal Finance Education Group called it a "huge victory”, with chief executive Tracey Bleakley saying: “Financial education is essential in equipping young people with the knowledge, skills and confidence they need to be able to manage their money well.”

A prepaid card is a great way to teach your children the value of money and how to budget. Money is loaded to the card before spending, making it easy to budget, manage funds and shop sensibly.

The report also highlighted the impact of prolonged economic turbulence, finding that one in four Britons feel forced to make "major lifestyle changes" in the next year.

These changes include things like downsizing property, selling a car, missing out on holidays or delaying major life decisions such as marriage, having children or retirement.

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