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Banks 'emphasising importance of savings' to young people

Financial education is being increasingly promoted by banks and young people are becoming more financially aware as a result, it is claimed.

A spokesperson for HSBC has said that bank accounts for children are now more focused on separating spending money and savings, allowing youngsters to get used to managing their finances through multiple accounts at an early age.

Meanwhile student accounts, although offering large interest-free overdrafts, are also important in developing the financial awareness and independence of young people.

"Banks are slowly but surely trying to do what they can to help people start managing their finances at a younger age, to give them a head start," said HSBC press officer Karen Garner.

"The banks are [trying to] help them understand that there are benefits to saving as well as spending," she added.

Earlier this month the Department for Education and Skills claimed that children have major gaps in their understanding of basic personal finance issues, with over 40 per cent of 16 to 21-year-olds not knowing what the term APR meant, it was reported by Finance Daily.

30/04/2007 17:48:14

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