Member Article

Money worries baffle young

Basic aspects of money and finance are still baffling to many young people, according to a government survey. A poll carried out for the Department for Education and Skills (DFES) found that 40% of 16-21 year olds did not know what APR stood for. 25% thought store cards were better value than credit cards, even though they are generally much more expensive to use. The poll is part of a DFES initiative, “Talking Money”, encouraging parents to talk to their children about finance.

Bill Rammell, the minister for Higher Education, said: “It would appear that in many families money remains the last taboo subject. “Talking Money is designed to raise awareness of the fact that financial help is available to cover the cost of higher education in the form of loans, grants and bursaries. “We are encouraging parents and their children to sit down and talk about money together.”

The poll found that many parents were uncomfortable about discussing financial matters with their children, and more than 90% of parents said they would welcome advice on student finances. The poll also uncovered a surprisingly high level of awareness of insolvency procedures among youngsters. Nearly two thirds claimed they knew about individual voluntary arrangements (IVAs).

This was posted in Bdaily's Members' News section by Ruth Mitchell .