Education 'could help Britons manage money better'
Published On 18 October 2006
Financial education could help debt-ridden Brits manage their money better, according to the Financial Services Authority.Findings from a recent survey by the FSA show that people aged 18-40 are having real difficulty organising their finances and are failing to plan ahead when taking out loans, mortgages and other financial products, which in turn is leading to serious financial problems.
Indeed recent figures show that Britons have twice as much debt as their counterparts in the rest of Europe, with the average UK consumer owing £3,008 in unsecured loans.
Twentysomethings in particular are suffering from bad financial planning, with the number of people aged 20 to 30 taking out individual voluntary arrangements (IVA) soaring by 90 per cent in the last six months.
In response to the new findings the FSA is launching a National Strategy for Financial Capability which will offer help and advice to over ten million people through talks and information packs in schools, universities and workplaces to help them make the most of their money and avoid getting in to debt.
John Tiner, chief executive of the FSA said: "Despite being in the early days of delivery, we're helping thousands of people across the UK approach their finances with a new sense of confidence.
"The programmes range from school participation through to workplace seminars and have been developed with and delivered through a range of partnerships. The broader challenge is to widen the availability of basic level money advice and we are forging alliances with trusted existing organisations."
The FSA has committed more than £15 million for the project over the next five years.
