Parents should be going out of their way to teach their children about the basics of managing money. 

This is because new research from the Money Advice Service has found financial habits – both good and bad – are ingrained from childhood. 

The study discovered that by the age of seven, the majority of children understand the value of money, know how to count notes and coins, and are capable of completing complex functions such as forward planning. 

It demonstrates how important it is for parents to spend time with their children and educate them about financial prudence, as these qualities will stay with them through to adulthood, when they will have to make big money-based decisions. 

As part of the research, the body has looked at over 100 studies published over the last 30 years in an effort to get a prevailing point of view. Based on the findings, it is going to work with pfeg (Personal Finance Education Group) and non-school organisations to improve financial education. 

The group will also develop products and services that parents or carers can use to help youngsters understand complex financial concepts and make them more relatable. 

Caroline Rookes, chief executive of the Money Advice Service, said the study makes it clear how important parental influences are when it comes to teaching kids about the value of money. 

"Much of what you learn and absorb when you are young, both consciously and subconsciously, affects the choices you make throughout the rest of your life. Over the next few months, we will be working closely with experts in education and the financial services industry to bring together a forum, and develop world-class parenting and teaching resources," she added.

If youngsters are not armed with the necessary financial skills, they might develop bad habits that will stay with them throughout their adult life. This could see them develop credit card debt, use unauthorised overdrafts or take out personal loans they will struggle to repay. 

By Amy White

Money habits ingrained from childhood, study finds is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

Too many households in the UK are being forced to use credit cards and overdrafts to get them through to payday.

Research by MoneySupermarket.com has discovered the current generation is becoming overly reliant on borrowing to balance their finances – a situation that could lead to heartache in the long run. 

Indeed, the study discovered consumers are saddling themselves with additional debt as they do not fully understand how interest rates are calculated. 

Worryingly, 39 per cent of respondents have used their savings to get by, while 41 per cent have been forced to rely on an authorised overdraft to tide them over and 27 per cent turned to plastic. 

Kevin Mountford, head of banking at MoneySupermarket.com, said one of the main reasons that people are struggling is because of the rise in the cost of living. 

"For those relying on credit cards or their overdraft as a fall back until pay day, as our findings show, it really does pay to research your options and think about the additional interest you could end up forking out," he added.

Mr Mountford pointed out that credit cards can boost credit profiles and help people manage their day-to-day expenditure, but if individuals do not pay off the balance in full at the end of every month, they could get caught up in a debt spiral. 

People are also demonstrating an increasing willingness to lean on their friends and family in their hour of financial need. Some 27 per cent of those questioned had borrowed money from this source, with those aged between 18 and 34 the most likely to do so.

Individuals going down this route need to be careful though, as this could create some discontent if previously agreed upon repayment plans are not kept.

Mr Mountford concluded by reminding consumers of the golden rule of borrowing – to make sure "you can pay it back and that any debt incurred doesn't spiral out of control".

By James Francis

UK adults borrowing money to ‘get through month’ is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

More than a third of couples in the UK are falling into debt as a result of indulging in their partner's diva demands, according to new research from Quidco.

Boyfriends are entertaining the demands of their girlfriends, which include luxury holidays, fine dining and top high street brands and designer labels.

On average, this expenditure is setting them back £1,632.

However, it's not just men who are overspending in order to meet their partner's high expectations as women are also spending money on luxuries for their high maintenance boyfriends.

Women in the UK are shelling out an average of £84 each month in order to meet their partner's demands.

Though they probably would not admit it to their significant other, this is becoming a constant concern for couples across the UK. Seven out of ten adults questioned in the survey said they worry about the costs of keeping up with the wants and needs of their other half.

This diva behaviour of men and women in the UK is causing many to fall into credit card debt in an attempt to keep up, with the average bill reaching £1,426. 

Some 32 per cent of women surveyed have found themselves in debt by entertaining high maintenance partners, with almost 40 per cent of men in the red.

Andy Oldham, managing director at Quidco, said: "All couples like to spoil each other and make one another happy, but splashing out on expensive treats in a continually challenging financial climate can be dangerous for cash-strapped Casanovas."

Maintaining relationships is important but partners should try to budget their spending and put money aside for gifts for their partners.

An increasing number of people are falling into debt in order to keep their boyfriend or girlfriend happy with many turning to plastic to foot the bill. This debt can easily spiral out of control, especially when credit card interest rates are high.

People using credit cards should have a financial plan in mind in order to pay off the bill as quickly as possible.

By Amy White

Couples falling into debt as a result of diva behaviour is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

UK holidaymakers are running the risk of paying £327 million in extra charges on their credit card while overseas this summer, according to new research by iSwitch.

Many consumers do not know about the charges until they get home and find a large bill, which can potentially lead to an increased amount of credit card debt should it not be possible to pay off.

The research notes consumers using a debit card could end up paying out even more in fees, with many banks charging a a large amount on all overseas spending. 

In total, 18 million holidaymakers (53 per cent) will put the cost of their trip on plastic this year despite one in ten (12 per cent) still paying off debts from their last holiday.

According to the report, a quarter of consumers (24 per cent) plan to use a credit card to cover their expenditures while on holiday abroad this summer, with an average of £992 estimated to be put on each individual card. 

However, average exchange rate transaction fees of 2.75 per cent mean holidaymakers could find a massive bill when they arrive home. 

It is the 60 per cent of consumers that use their credit card to withdraw money from ATMs abroad who will be hit even harder, with fees of three per cent on top of the transaction fee, plus daily ‘cash advance' interest charges on all cash withdrawn at rates that can go as high as 39.9 per cent a day until the amount is paid back.

Michael Ossei, personal finance expert at uSwitch, said: "Travelling abroad is expensive enough without the extra penalties for using the wrong card while you're there. Financial awareness may go into holiday mode, but a high credit card bill is one holiday hangover you can do without."

Paying for things via plastic can be incredibly convenient, although it may come with excessive charges that could lead to an increased amount of debt if individuals are not careful.

It is vitally important for holidaymakers to explore all options when looking to pay for things abroad as debit and credit card usage can be more painful than many people think.

By James Francis

Holidaymakers risk large charges when travelling abroad this summer is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

An increasing number of young adults are living at home as a result of financial constraints, according to new research from Saga.

The report found around three million over-50s still have their adult children living at home with them, with the average age being 27.

Parents aged 50-54 are the most likely to be housing their adult children (32 per cent), while one in six parents aged 60-64 said they are still providing a roof over their children's head. Many parents thought their children would have left home long before this, but financial constraints have caused them to stay.

According to the research, more than half of adult children have had a brief stint of independence before they return to their parents' home, with the most common reason being finishing university. 

One in ten said a split from their partners and nine per cent claimed they stayed at home to save for a deposit on their own house. This could perhaps explain why one in seven of these returning children are aged between 31 and 40.

Unsurprisingly, London has the most grown-up children living at home, with a fifth of parents saying they still provide a roof over their heads. Children in the south-west and east Midlands are the most likely to leave the nest quickly, with only one in ten parents in these regions say they are still putting up their children.

Naturally, wealthier parents are helping their children get onto the property ladder as only 14 per cent of richer people have adult children at home. Less well-off families are most likely to have grown-up children at home (20 per cent).

As young people rack up more debt due to university fees, living costs and the poor job market, it is becoming increasingly harder for them to move out of home when they come of age.

Roger Ramsden, chief executive at Saga, said: "Encouraging children to start saving for their first home when they're younger could be high on most parents' agendas after reading this research. With so many children choosing to stay at home longer, it just proves that a parent's work is never quite done and that they will foot the bill for far longer than they originally expected to."

By Joe White

Financial constraints forcing young adults to live with parents is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.

Just under a third of people in the UK (31 per cent) do not know how they will finance their needs in later life, according to new research from National Savings & Investments (NS&I).

Individuals are not certain how they will finance services such as nursing home or care fees in the future.

However, 26.7 million adults in the UK (54 per cent) have began thinking about their financial needs, while just over a quarter (27 per cent) of these adults have actually started to put financial plans into practice.

Of those who have yet to consider financial planning for their futures, over a quarter (27 per cent) admit they do not want to think about such events. Some 23 per cent say they have not had time to think about their later life financial needs, while just under a fifth (19 per cent) prefer to take a short-term view of their finances and use the money they have for the present.

Furthermore, 12 per cent don't consider that this situation will affect them in the near future and believe they will have plenty of time to consider such planning going forward, while seven per cent of individuals do not consider financial planning for the future as important.

Worryingly, some 43 per cent of people who have yet to consider their financial planning in later life admit to having no idea how to finance such needs.

An increasing number of people are now caring for their parents and others when they retire and this cost is not being taken into account by many. A quarter of individuals who care for or need to care for others will do so by relying on the pensions and benefits of the person being cared for, while (23 per cent) said that they would need to make financial sacrifices of their own in order to fund the care.

John Prout, NS&I Retail Customer Director, said: "With people living well into their eighties, many more of us are likely to need care in the future, and are likely to need to care for others also. Getting the right information as early as possible is vital to making sure you get the best possible care you can in later life."

By Amy White

Almost a third of adults unsure how they will finance their later life costs is a post from: ClearDebt Newsdesk a leading UK IVA licensed insolvency services company. ©2011, All Rights Reserved.