Open University: 1 In 7 18 Year olds In Debt

StopIt

https://ounews.co/business-law/business/eleven-top-tips-to-become-a-financially-savvy-teens/


Headlines from the article, along with a free course in money management for young people available here: http://www.open.edu/openlearn/money-business/managing-my-money-young-adults/content-section-overview?active-tab=description-tab

The_OU wrote:

According to research from by the OU's True Potential Centre for the Public Understanding of Finance (PUFin) a staggering one in seven 18 year olds is already in debt. Almost two-thirds (60%) of them admit they owe money to payday loan companies - £168 each on average.
Excluding more traditional student borrowing, the research found that these 18 year olds have already racked up debts on credit cards (60%) totalling £14.5 million, as well as unauthorised overdrafts (57%), store cards (49%) and catalogues (49%).
Almost two-thirds (64%) of this age group believe their debt situation could have been avoided if they’d received more effective personal finance education and 94% say it would have been prevented with some form of guidance or support.

The article has 11 tips for money management, but the meat is in the course they also link.


The course linked contains guidance from MSE Founder Martin Lewis and for those with/who are young adults about to enter university, or the jobs market at 18, I would say it's something to look at.

debtfreeforlife

The only thing that's 'staggering' about that number to me is that it's not higher - we need better financial education. Most of my university friends ended up in debt, and the only reason why I didn't was because my mother (a debt counsellor) taught me how to manage my money. Even then, I went a bit overboard when I got my student loan because I'd never had that kind of money before. And that was in the times when student loans actually fully covered the cost of being at university and staying in halls etc.

Potbellypig

I've always wondered what the % of people who had good guidance and support in regards to financial education but were still in debt by the time they were X age. I had a great financial education then once the reins were let loose, I went and got into massive amounts of debt compared to what I was earning.

Of course education will assist, but I'm not overly convinced it's all about education. I just think society has changed over the last 25-30 years where that 'I want and can have it now' culture has become the norm. The only way we can really change the future is by the companies who give credit so easily actually saying 'no'. Thus making people needing to earn and save money to buy stuff. But look, we all know that will never happen.

debtfreeforlife

Potbellypig wrote: »

I've always wondered what the % of people who had good guidance and support in regards to financial education but were still in debt by the time they were X age. I had a great financial education then once the reins were let loose, I went and got into massive amounts of debt compared to what I was earning.

Of course education will assist, but I'm not overly convinced it's all about education. I just think society has changed over the last 25-30 years where that 'I want and can have it now' culture has become the norm. The only way we can really change the future is by the companies who give credit so easily actually saying 'no'. Thus making people needing to earn and save money to buy stuff. But look, we all know that will never happen.

Where did you get that education from, out of interest? I didn't get it at school. But yes I agree, we live in a 'I want' culture because we live in a capitalist and consumerist culture. Companies that provide credit need to look at their practices, but I have seen so many articles this month saying that high street shops are seeing a reduction in spending and wringing hands over it eta. Since the wages in the UK are going down in real terms and food and rent costs are dramatically increasing at present, it's GOOD that people are spending less on non essentials. But that's not how our media frame the discussion.