financial education - resistance by banks

princeofpounds

We have been sorting out daughters post GCSE 'what to do next' course etc

Her actions are a good sign - the ability to plan ahead and defer gratification to achieve long-term goals are pretty much the defining characteristic of a person who can achieve at least moderate success (i.e. the sort that can be won by a person who works hard at a normal job and manages their finances prudently, rather than a footballer, or singer, or entrepreneur).

olly300

fc123 wrote: »

Compound interest is all they need to teach teens. Do some loan examples on different rates like This telly is 1k, if you repay over 24 months, how much do you pay in the end?...that type of thing. Might lose Brighthouse a load of custoners in the future though.

They already teach that.

The problem is particularly with those going on to higher education they don't understand the difference between good debt and bad debt i.e. bad to get into debt over a mobile phone bill but good debt for tuition fees.

Also it doesn't help that most parents don't sit down and say the bills cost this much this month as they want to hide financial stuff from children as it ruins their childhood.

fc123

kabayiri wrote: »

Eeeks, I can just see the lesson now ...

"Jeddy owes Tykes a Monkey for an 1/8th he bought last weekend. Tykes says the money owed is going up by 25% a day.

a) How much would Jeddy need pay Tykes the following weekend?
or
b) How long before Jeddy makes a surprise visit to the local Casualty unit ?
"

Well..I was thinking more along the lines of......
You have a job (or..err.... benefits income to be inclusive ) of X.

Your rent/bills/food/travel are Y

You want to buy a big f*** off telly for £2k but only have £100 spare at end of each month.


Then a list of options like a loan @ 10%, or borrow from Brighthouse @ 1000% apr or save up and get lots of interest on your savings @ 0.2%.:o

..or something like that....can't be that difficult to male it relate to their time of life and aspirations?

kabayiri

My favourite FC123, is the ex-brookside girl advertising Park Xmas savings club.

It's something along the lines of :-
"are you worried about not being able to afford Xmas?
well....join Park, and put so much away every month,and get loads of lovely vouchers to spend for a worry free Xmas"

Erm, so let me get this right. People who borrow because they do not have enough to buy what they want for Xmas, should save for the following Xmas (?!) thus depriving themselves of even more funds?

Well, I suppose they could compensate for the savings into Park by borrowing more now!

Doh!