31 October 2014
5 scary facts for Halloween: why a lack of financial education is truly frightening
Children in England are now being taught about money as part of the national curriculum and we found some startling statistics which demonstrate the importance of financial education …
- 42% of young people aged 14-25 were unable to identify the difference between being overdrawn or in credit on a bank statement. The survey by money education charity Pfeg also found that 13% didn’t actually know what an overdraft was.
- 28% of the same group didn’t realise it would be better to opt for a low APR than a higher one when taking out a credit card or loan.
- According to research prepared for the Guardian, one man saw a £200 payday loan increase to £1,851 in just three months. It’s just one example of how these loans can spell disaster if you don’t understand the terms – and there is now one payday loan lender for every seven banks or building societies on Britain’s high streets.
- The Money Charity reports that every 4 minutes, 51 seconds, someone is declared insolvent or bankrupt in the UK.
- 15 celebrities were named in a Telegraph feature on stars who have been declared bankrupt (and this is by no means a comprehensive list). With names ranging from Donald Trump and former Westlife member Shane Filan to Neil Morrissey and Kerry Katona, it adds to the impression that being in debt has become more socially acceptable.
Sources: Pfeg, The Guardian, The Money Charity
What can you do to help?
For ideas on how to teach your children or grandchildren about money, take a look at our infographic and read our blog about fun money-related apps and games.
To find out more about what will be taught in schools, take a look at our at-a-glance guide to what has changed from this term.
Back to School – Money is Now on the Curriculum
This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.