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Teenagers 'becoming more financially aware'

Teenagers have become more aware of financial products since the education maintenance allowance (EMA) scheme was introduced, according to a new study.

Research by the Learning and Skills Council (LSC) showed that the number of 16-year-olds without a bank account has fallen from 39 per cent in 2003 to three per cent today.

This has been partly attributed to the introduction of the EMA scheme in 2004, which entitles young people grants of up to £30 a week depending on their income as an incentive to stay on in education.

Skills minister Phil Hope stated that the scheme has also led to an improvement in the academic performance of pupils.

He said: "Since EMA was introduced in 2004, the rise in participation and increase in the number of young people attaining Level 2 qualifications – five GCSEs or the vocational equivalent – has been dramatic."

The LSC has advised that 15-year-olds who are unaware they need a bank account to receive EMA payments to open an account now before they turn 16.

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04/04/2007 15:00:57

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