The problem of debt in Britain is increasing on a daily basis. A survey by National Savings and Investments found that 39 percent of us overspend on our debit cards because we feel like we aren't spending real money. Now, many debt organisations are calling for greater financial education to protect consumers from learning the hard way.
Lucy Meakin reports on the case for financial education for all generations.
What do you think? Send us your thoughts here...
Be interesting, I think, in this context to see how the marketing of the new generation of prepaid plastic cards develops. At the moment there are already several brands deliberately targeting teenagers with the stated aim of encouraging financial responsibility: if you can't spend more than you've got loaded on the card, then in theory at least you can't buy stuff you can't afford. Ultimately I fear what will happen is that having got a taste for using plastic, as soon as they get old enough they're then going to want a 'proper' card - or worse still, get invited to apply for one - and undo all the good work the prepaid one did.
(11.58am 7th June 2006)
You say:
I personally think that financial education should begin at a very early age, children have access to more and more nowadays, and unless they are correctly taught the value of money and financial responsibility at an earlier age than now, they stand much less chance of being able to manage their own affairs responsibly.
There needs to be a strong emphasis on teaching budgeting, and much more awareness about the pitfalls of credit, we live in a credit rich society, which young people are being brought up in; they will assume that credit and debt are the norm!
It is no good just blaming the creditors or the government, we, as individuals, must also shoulder the blame for our mistakes, and make sure that others are fully aware of the pitfalls.
(9:58am 7th June 2006)
Yes, people in financial troubles rightly contribute some of the blame to Creditors, but ultimately it is down to the individual to educate themselves in correct financial matters, as I believe that it is very rarely that the individual themselves can honestly say they were totally blameless.
I have learnt the hard way, but I now am sure that from now on my financial decisions will be much more sound, and avoid the pitfalls of Creditors lures!
(10:28am 7th June 2006)
I think basic financial education in schools would be a good idea. Whilst at the end of the day you can't make people look after their finances, and there will always be some who behave irresponsibly, I do think it would help to give people the basic tools for understanding financial matters. Basic misconceptions could easily be dealt with at a young age and help make life that little bit less daunting for those starting out on their own, and maybe help them to avoid problem debts due to taking on commitments they couldn't afford. I don't think it would solve the problem, but it would perhaps encourage people to take more responsibility for their own financial well-being.
(4.26pm 6th June 2006)
Learning the hard way: The case for greater financial education.
