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Young people 'lack knowledge of money management'

Many young people lack basic knowledge of personal finance issues, according to a government poll.

Research for the Department for Education and Skills found that more a third of 16 to 21-year-olds do not know what APR means, while 31 per cent have never heard of an individual voluntary arrangement.

However, parents were found to do little to educate their children, as many were found to feel uncomfortable broaching the subject of money management.

Despite 83 per cent of parents having worries that their children will get into debt, 30 per cent stated that they do not discuss debt and credit at home.

Furthermore, almost half avoid mentioning money as they fear looking like a nag, while many are put off by their child's attitude of thinking it is unimportant.

Bill Rammell, minister for higher education, said: "While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject."

According to the Personal Finance Education Group, Britain's overall level of consumer debt is more than £1.25 trillion.

The organisation is campaigning for schools to deliver personal finance education as part of the national curriculum.

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28/03/2007 15:07:58

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