| Young people need better education if they are to | | | | education, especially when children make the |
| become financially responsible in later life, an industry | | | | transition from primary to secondary school. |
| expert has declared. | | | | Her comments come after research carried out in the |
| According to Wendy van den Hende, chief executive | | | | group's What Money Means initiative earlier this year |
| of the Personal Finance Education Group (Pfeg), | | | | revealed that more than three-quarters (76 per cent) |
| children need more suitable financial education if they | | | | of children between the ages of seven and 11 are |
| are to develop sufficient awareness of how to use | | | | currently saving money. The study also indicated that |
| monetary products such as personal loans and | | | | a third of young people see saving up cash as the |
| savings accounts when they are older. She stated | | | | best way in which to finance making a purchase. "We |
| that although many children are currently "interested | | | | need to help build on these good behaviours and |
| in money matters" and "do see its relevance", the | | | | attitudes [while children are young] to keep them |
| education they receive is often not matched to their | | | | going because as they get older they will inevitably |
| financial needs. | | | | start experiencing peer pressure and will be exposed |
| She said: "Young people have all sorts of exposure to | | | | to the media trying to sell them things," the PFEG |
| finance in all sorts of ways. They are very good | | | | chief executive pointed out. |
| consumers, a lot of them have jobs outside of | | | | And as a result of improved financial education when |
| school and they are very sophisticated ... but they | | | | they were younger, consumers may well develop a |
| are not actually taught about finance. There seems | | | | more responsible and knowing attitude should they |
| to be an expectation that they will pick things up by | | | | look to borrow money in later life. This in turn could |
| some kind of osmosis, which tends not to happen." | | | | help them to search out a cheap loan, which could be |
| Ms van den Hende added that "it is really important" | | | | particularly helpful should Britons wish to make a |
| for children to learn about personal finance at an | | | | major purchase, such as a house or a car. Earlier this |
| early age. As research from the firm shows that | | | | month, research conducted by Nationwide showed |
| two-thirds of teenagers lack understanding about | | | | that about a quarter (24 per cent) of teenagers |
| loans, savings and other fiscal matters, the chief | | | | would take out a personal loan or another form of |
| executive pointed out that it is vital such education is | | | | borrowing to help finance such buying. The study also |
| provided at an early age so that they have a good | | | | indicated that 24 per cent of teenagers believe that |
| knowledge base on which to build in later life. | | | | they do not have a good knowledge of finance, |
| Consequently, she advised that there needs to be | | | | while 38 per cent state that they would turn to their |
| more structure and coherency applied to financial | | | | school for information on money matters. |