Personal finance education wanted in schools by parents

New research has revealed that nine out of ten parents think personal finance education should be taught in schools.

Findings from the Association of Investment Companies (AIC) showed that over half of respondents in the survey thought this should be mandatory.

Nearly half of parents believe it is the joint responsibility of both teachers and parents to teach children how to handle their money.

Annabel Brodie-Smith, communications director with the AIC, said: “Parents are clearly worried about their children’s ability to manage their finances in the future and feel financial education is a crucial skill for adult life.”

She added that many parents believe they have missed out on a financial education “so it’s no wonder they want their children to be better prepared for the wider world.”

The survey also showed that 90 per cent of parents had no financial education when they were at school.

Over two thirds of would now like some sort of personal finance training as an adult, either to pass onto their children, or so they can put their own financial affairs in order.

Meanwhile, research from the Social Issues Research Centre shows the average top up for a Child Trust fund is £21.20.

Tags: adult, respondents, Association of Investment Companies, social issues research, Social, school, communications director, child trust fund

Many rely on credit in lead up to Christmas

People struggling to finance their purchases in the festive season will not think twice about relying on credit, AWD Chase de Vere said yesterday.

Susan Hannums, savings manager at the independent financial advisers, explained that it is the “norm” for a lot of people at this time of year.

She said: “The spending and the mortgage rates are going up … there’s a lot happening, and it’s a very worrying time. But the message really is that you’ve got to forward plan.

“We’ve got to get into the savings habit and get away from using credit cards day to day really.”

Furthermore, she said, people with young children will want to make it the “best Christmas possible”, but it is good to try to be “imaginative” and make savings on presents for friends and other members of the family without “splashing out”.

Research from Credit Action earlier this year showed that personal debt in the UK is rising by £1 million every four minutes. The average amount owed by every adult in Britain is a staggering £27,180 (including mortgages).

Tags: adult, manager at the independent financial advisers, 1 million, habit, season, Susan Hannums, lot

Parents forking out for offspring debt

Some 7.5 million parents are having to financially support their adult children, new research has found.

A MoneyExpert survey found that 40 per cent of parents with adult children have to help out with debt problems, with some £2,540 being paid per family on average.

Mobile phone bills and car finance were the most popular debt types that 24 per cent of parents have helped to cover the cost of, closely followed on 23 per cent by credit card bills.

Overdraft finances on 20 per cent and student loan debts on 15 per cent also featured as the fourth and fifth most common types of debt.

MoneyExpert chief executive Sean Gardner commented that the figures reveal that child expenditure is now a financial burden for many parents even when their kids reach adulthood.

“With the cost of living so high at the moment and with so many people living a buy-now-pay-later lifestyle, parents are often forced to help out with their children financially in later life,” he added.

Recent statistics from the debt charity Credit Action reveal that the average graduate debt for adults under the age of 30 is £12,363, but the figure represents both a decrease of £889 on 2006 and the first drop in graduate debt for six years.

Tags: credit, graduate debt, adult, adult children, Financial services, Parent, Student loan, Credit card

Borrowers paying too much interest

Britons are paying £9.3 billion too much interest through unsecured borrowing, leading to a worsening debt crisis.

That is according to Zopa, a marketplace for people to lend and borrow money from each other, which says that the majority of borrowers are being overcharged.

Zopa reveals that the end of 2006 saw every adult in the UK in debt to the tune of an average £4,611, with the money spread across credit cards, store cards, personal loans and overdrafts.

This is said to include £201, that the firm says is the average amount of interest which borrowers are being overcharged per year.

“The scale of personal debt in the UK is quite astonishing and the extent to which people are being ripped off by their banks, credit card and personal loan companies is simply outrageous,” said James Alexander, chief executive officer of Zopa.

“People in this country desperately need to start shopping around for a better deal. One of the best ways for people to take that important first step to getting their debt under control and managed properly is by taking advantage of the best interest rates available.”

Zopa claims to offer borrowers better deals by cutting out the banks in the whole lending process.

Those of you considering taking out a loan may find that borrowing in this way is attractive, however, the most important thing to do is to shop around for the best deal that suits your needs.

Tags: store, loan companies, debt, Unsecured debt, officer, GBP, end, adult