MSE News: Lack of financial education costs UK £3.4 billion a year

Former_MSE_Helen

"A year after 100,000 forced a parliamentary debate on the issue, a new CEBR study shows the huge cost..."

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Lack of financial education costs UK £3.4 billion a year

Eccles01

Very sad, having been a financial professional all my life, use of a computer and money saving comes naturally to me. However, all around me I see and hear of folk being ripped off all of the time simply because they don't know a few simple rules, lack wisdom or are not assertive enough. Latest was a neighbour who was charged £1,200 for a four day job of redecorating her small bungalow - she should have asked me and I would have done it for £600.

Ectophile

Presumably, lack of financial education is also earning somebody else £3.4 billion a year!

Rafter

Eccles,

Couldn't agree more.

Part of the problem is making sure people have access to good advice and know where to get it.

Citizens advice needs a huge boost in investment - paid for by a levy on all businesses or possibly a good home for some of the fines being paid by banks and other firms for ripping consumers off!

I also strongly believe that the government has to protect consumers better (sometimes from themselves) and limit the amount of debt people can take on to avoid them living beyond their means. Coupled with compulsory pension contributions for those who earn enough means tax payers are not effectively baling out those who aren't better at financial planning.

Banning payday loans, excessive overdraft charges and limiting enforceable unsecured debt to 33% of income would be a good start!

R.

Ectophile

If you banned payday loans, then people would be forced to use loan sharks instead. They would charge even more interest, with threats of violence if they are not paid on time. At least the payday loan companies have to tell customers how much they will end up repaying.