Past Articles for the Debt and Young People Category

A book aimed at teaching young people about the importance of being financially responsible is now available in Gaelic, it has emerged.

The publication, titled On the Money, is part of a project launched last year by Standard Life, Learning and Teaching Scotland and the Scottish Book Trust with the aim of education children between eight and 12 about money.

Well-known Scottish writers were commissioned to write four stories on the topic, covering issues such as saving, earning interest, becoming debt free and effectively managing money.

Commenting on the launch of the Gaelic edition of the book, Jim Lally of the Scottish Centre for Financial Education explained that every Gaelic medium school in Scotland would receive the publication free of charge.

He stated the aim was to ensure “Gaelic speaking young people receive the same entitlement to develop their financial capability as their English speaking counterparts”.

Norwich Union recently called for young people to start saving sooner, stating that such a move is necessary in order to ensure they are financially secure in the years to come.

By Tom Musk

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Young people need to start saving now and not let the credit crunch hinder their opportunity to create a safe financial future, one insurance firm has stated.

Norwich Union has issued the warning after a new survey from the investments and pensions firm revealed the young people of today could face average weekly shopping bills in the thousands in the next half century if historical trends continue.

And Head of marketing, corporate and pensions for Norwich Union Paul Goodwin stated that people need to think long-term in order to avoid the dangers of debt and bankruptcy in the future.

“As the credit crunch bites, most people are focused on short-term savings, but it’s important that they also start thinking about their long-term futures, even if they are only putting away a small amount each month,” he remarked.

The announcement follows claims from insurance expert Roger Edwards, who has argued debt is causing young people to not save as much as they should.

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Many UK workers are risking financial problems and debt later on in life by failing to sign up for company pension schemes, new research has revealed.

Findings from Prudential suggest that although 66 per cent of UK employees were aware of pension packages offered by their employer, 18 per cent failed to sign up.

This 18 per cent is resulting in over £5 billion in pension perks being lost every year, with staff earning the average wage of approximately £19,500 per annum losing out on an extra £2,208, possibly increasing their chances of needing debt help as they get older.

And the results are less favourable among young people, with 37 per cent in the 18-24 age group being unaware of their employers’ pension plan.

Those who already hold a pension have been advised to think carefully before making a decision to reduce their contributions by Adrian Lowocks of Bestinvest.

By Tom Musk

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Debt is causing young people to not think about their long-term plans and save money for the future, according to one insurance expert.

Roger Edwards of Bright Grey also suggested that society as a whole is not contributing enough towards savings, meaning many could struggle if they are forced to stop working for whatever reason.

And Mr Edwards urged those with insurance policies to not cancel them, even though the current financial climate may be causing many to want to “save a couple of quid per month”.

“Younger people are entering their working life with student debts they need to repay,” he explained, adding that people should consider improving their debt management by putting some money away “for a rainy day” in case of any financial troubles in the future.

Recent research conducted for Bright Grey by Tickbox.net revealed that 63 per cent of those surveyed have cut back on spending as a result of the credit crunch.

By Tom Musk

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A new initiative aimed at reducing child poverty has been unveiled by ministers.

Jobcentre Plus personal advisers are to be placed in children’s centres in order to give parents better access to their services.

It is hoped this measure will lead to more parents being in employment, lowering the level of child poverty and helping families to remain debt free.

The pilot scheme is being rolled out across 30 centres in ten different local authorities from January of next year.

It follows a successful trial period of providing tax credits advice through children’s centres, which now is due to be expanded.

Children’s minister Beverley Hughes said that the government has done a lot to lift households out of poverty.

“We remain fully committed to tackling child poverty through support for families,” she added.

Recently the Child Poverty Action Group revealed that child poverty costs the UK around £25 billion per year.

By Jamie Price

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The government is launching an £11.5 million financial education programme in schools to help young people learn how to handle money matters.

Entitled My Money, the initiative will be led by the Personal Finance Education Group and will aim to give pupils a better understanding of debt management.

It is being spearheaded by Ed Balls, the secretary of state for children, schools and families.

Commenting on the launch, Mr Balls said: “It is more crucial than ever that young people are fully equipped with the confidence to manage their money effectively both now and when they become adults.”

He added that financial capability education is high on the government’s agenda.

Meanwhile, the ifs School of Finance has revealed that politician Michael Portillo is to speak at its upcoming Yorkshire regional networking event, held at Leeds United Football Club on November 11th.

Mr Portillo has previously served as chief secretary to the Treasury and as the shadow chancellor.

By Jamie Price

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The financial establishment has failed young people, a new report has concluded.

Entitled Money’s too Tight to Mention: Will the IPOD Generation Ever Trust Financial Services?, the paper is published by think tank Reform and the Chartered Insurance Institute.

It suggests that IPODs - which stands for Insecure, Pressurised, Over-taxed and Debt-ridden 18-34 year-olds - have been pampered, yet left without the tools to cope with the economic crisis.

Government regulation has led to young people being overprotected and caused a culture of irresponsibility, it claims.

The report argues that younger people must be equipped with debt management skills in order to avert a whole generation being left in poverty.

Senior economics researcher Lucy Parsons remarked: “We are potentially more capable of managing our money than previous generations, but we have been let down by the financial establishment and government.”

Recently, the ifs School of Finance stated that education can play an important role in rebuilding confidence in the financial services industry in the wake of economic turmoil.

By Jamie Price

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Students have been offered some debt advice by an industry insider.

Those at university should approach budgeting in the same way as coursework, by breaking down money matters into achievable goals, according to Derek Oakley from Debt Free Direct.

He recommended that students should sit down and work out incomings and outgoings for the academic year, taking food, clothing, bills and travel into account.

Then, money for social spending and non-essential items should be allocated for the rest of the year.

“Ideally, their goal should be to graduate with as little debt as possible, while still enjoying their student years,” he stated.

Student website Push also outlines several ways for students to handle their finances.

Blowing all of a student loan at the beginning of the year will leave people “miserable and bored” later on, it notes.

Sharing cooking and bills with flatmates can also help to reduce costs, it advises.

By Jamie Price

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Children would rather have more time with their parents than money, new research has found.

American Express conducted a survey into the opinions of kids aged eight to 15, after figures showed that more parents are working longer hours in order to provide the things they think their children want.

It discovered that they are actually more interested in spending quality time with their parents than material things.

In addition, it showed that 93 per cent of children believe their parents are too stressed.

One in 20 of the kids questioned said they would live in a smaller house with less bills when they were older in order to remain debt free.

Chris Rolland, head of insurance services, commented: “Families are under an increasing financial burden and it seems that kids are wising up to the pressures their parents are facing.”

Meanwhile the Child Poverty Action group has called for welfare reforms after a government report revealed that unemployment figures have shown the biggest rise for 17 years.

By Jamie Price

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Students are more likely to repay the full balance of their credit card debt than the general population, new figures have suggested.

Apacs, the UK payments association, conducted a survey into the financial habits of those in full-time education.

It found that 59 per cent always pay off their outstanding credit balance in full, compared to the national average of 55 per cent.

In addition, the proportion of people aged 16-24 that have a credit card stood at 22 per cent, lower than the national figure of 64 per cent.

However, 73 per cent of 16-24 year-olds have a debit card, suggesting that this is a more popular form of payment for students.

Meanwhile, parents that wish to buy a property for their sons or daughters to live in during university may be interested in a recent Halifax survey that showed house prices have risen in several student towns over the past five years.

By Jamie Price

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