MSE News: Young people have 'dangerous gaps' in money knowledge, charity says

Former_MSE_Helen

"Young people are entering their adult life with 'dangerous gaps' in their money management skills, according to Pfeg..."

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Young people have 'dangerous gaps' in money knowledge, charity says



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[Deleted User]

I'm 19 at uni, and it's scary what some of the guys here don't know about money. Couldn't agree with this more.

Queenriderbrekke

While I agree that Financial Education is lacking I shudder to think what skills will not be taught in schools to make up the time on the curriculum that is needed for FE to be taught!

adamg

hopefully re

Fluff15

Although I knew the responses to the questions mentioned in the article - I'm 22 and still have vast gaps in my knowledge. I've got no real idea how mortgages work, taxes on savings, working out your own tax if you're self employed, etc. All the knowledge I do have, I've looked up online myself!

I think in my school, there was definitely time in the mornings during registration to fit in some of these skills. We'd sit for 20 minutes, only two of which were taken up by the actual register. IMO there's far too much emphasis on academic subjects. I can work out lengthy quadratic equations or the length of x in a triangle; but what good is that when I need to work how much I'd pay in interest over 60 months with a car on finance?! Maybe if academic subjects were taught with examples of how apply them to actual life experiences, rather than just basic facts, we wouldn't have this problem.

geekonthepc

I'm 19 and about to go to uni. I'd like to think I've taught myself a fair bit about managing money - I now have two credit cards paid in full every month, an overdraft with the bank that I never use and a phone contract. However, I would have to look up information about tax on savings (I still don't 100% understand how my savings ISA works in terms of saving year-on-year with it) and I'm sure there are other apsects I could learn more about.

It shocks me that so many young people clearly don't understand some key facts about borrowing, but then again it doesn't really surprise me. I certainly was never taught about it at school. I guess most of what I know mainly comes from my parents (who both have very good credit ratings) and from general research. I'm just trying to get my credit rating up to scratch ready for some day when I might need a mortgage or loan to make a big step in life.

In any case, this is alarming news and needs to be sorted.

MoneyMate

geekonthepc wrote: »

I'm 19 and about to go to uni. I'd like to think I've taught myself a fair bit about managing money - I now have two credit cards paid in full every month, an overdraft with the bank that I never use and a phone contract. However, I would have to look up information about tax on savings (I still don't 100% understand how my savings ISA works in terms of saving year-on-year with it) and I'm sure there are other apsects I could learn more about.

It shocks me that so many young people clearly don't understand some key facts about borrowing, but then again it doesn't really surprise me. I certainly was never taught about it at school. I guess most of what I know mainly comes from my parents (who both have very good credit ratings) and from general research. I'm just trying to get my credit rating up to scratch ready for some day when I might need a mortgage or loan to make a big step in life.

In any case, this is alarming news and needs to be sorted.

Live for today mentality rules with some people either young OR old.
Being 50 something I was always told by parents to save for basic items, now only some people do same :money:

gibson123

It's not just young people. You only have to read these forums to see how much general ignorance there is about financial management. Of course this is not helped by how complex our banks and lenders make any type of money matter.

ermine

Pfeg chief executive Tracey Bleakley says: "It is clear that many young people are entering adult life with dangerous gaps in their financial knowledge that could lead them into serious financial difficulty.

Do these young people not have parents, were they raised by wolves? This is not a job for schools, it is a job for parents, to pass on their values and wisdom. It's nto that difficult, is it. If your bank statement has DR then STOP SPENDING. NOW.
Stop spending on wants until the statements say CR. An introduction to Wilkins Micawber from Charles Dickens would be a good place to start...

Tropez

Young people have dangerous gaps in all types of knowledge, if we're honest, as do many adults.

Hell, I know a 42 year old man who thought it would be a spiffing idea to take out a payday loan, for 15 days, for more than he would get paid at the end of the month.

I also know someone else who thought it would be a fantastic idea to charge the services of rather expensive working girls to a company credit card...

fionajbanana

chrisross693 wrote: »

I'm 19 at uni, and it's scary what some of the guys here don't know about money. Couldn't agree with this more.

When I was at uni, 10 years ago, I saw when the student loans were paid, I saw no end of students carrying a Harvey Nicks bag (Leeds). One student who sat in front of me showed his purchase - a £125 jumper! I think the SL payment was about £900 per semester.

Student loans are for books, food and bills - not for designer clothes!