Young Consumers can be Smart Consumers

email to a friend | user comments

Published: 25 June 2007

Young Consumers can be Smart Consumers

The OFT has highlighted problem sectors for young consumers, as schools from across the country take part in the final of a competition testing pupils' consumer skills in areas such as shopping and finance.

Research by Mintel has shown that 7-19 year-olds spend £13.9billion every year using pocket money alone and cash is primarily spent on clothes, computer games, petrol, savings and going out.

But a study carried out by the Financial Services Authority revealed a widespread lack of financial knowledge among young people and lack of awareness when choosing products.

The final of the Young Consumers of the Year competition for 14-18 years-old is organised by the Trading Standards Institute and follows regional heats involving hundreds of UK schools.

Young Consumers of The Year is a competition that involves hundreds of schools and youth groups from across the country, that rise to the challenge to become the nation's top young consumers of 2007.

Co-ordinated by the Trading Standards Institute, it invites teams of four aged between 14 and 18 years old to compete in a knockout quiz and has links to several different areas of the national curriculum.

The competition is sponsored by:

· Office of Fair Trading

· Argos

· Consumer Education Liaison Group

· Experian

· Food Standards Agency

· Financial Services Authority

· British Toy & Hobby Association

Regional winners have been invited to attend the final which will be held at Manchester Central in Manchester on 27 June 2007.

There are prizes for all contestants with winners collecting £1,000 for their school and the coveted Young Consumers of the Year Trophy, along with many other prizes.

The 12 schools in the final are:

· St Albans RC High School, Wales

· Caldicot Comprehensive School, Wales

· Chatham House Grammar School, South East

· Altrincham Grammar School for Boys, Manchester

· Portobello High School, Scotland

· Holy Cross High School, Scotland

· Arthur Terry School, Birmingham

· Heanor Gate Science College, East Midlands

· Plymouth College, Plymouth

· Allerton High School, Leeds

· Chislehurst & Sidcup Grammar School, London

The final in Manchester on June 27 is the last stage of a competition which aims to develop consumer skills and knowledge and improve confidence in areas such as:

· money and finance

· food and health

· safety

· the environment

The OFT recently identified some of the most typical consumer problems and scams affecting young people:

· Text messaging scams:

o Young people are targets of text messages, which might try and get callers to call premium rate numbers, including messages to 'ring this number for an urgent message from your mum and dad' or 'someone you know fancies you'. These end up costing £1.50 for the call

· Ringtone scams:

o Involve companies not sending ringtones out or signing young people up to receive regular ringtones. To stop them, text the number back with the words STOP ALL. If this doesn't work you can report them to the premium rate regulator ICSTIS

· Debt and finance:

o The Consumer Credit Counselling Service has found that the average amount owed by 18-24 year-olds in debt is £12,790 (excluding student loans). Before buying, stop and think if you can afford it. Buying on credit can mean you end up paying a lot more in the end

· Pre-owned computer games:

o These should still work and be in a reasonable condition. When buying from a retailer the law states that goods must not be damaged unless the person selling the item points these faults out

· Internet sites:

o When buying on the internet, read terms and conditions, do not put personal details or credit/debit card details in an email or personal details on social networking sites, and print out any confirmation emails.

OFT Consumer Education's Paul Burton, said:

“The amount spent by young people is enormous and they are increasingly involved in spending decisions whether it is mobile phones, computer games or traditional areas like clothes.

Having a skilled group of consumers shopping around and aware of their rights benefits us all.

The participants in Young Consumers of the Year gain valuable skills and a grasp of key consumer issues that they can pass on to parents, friends and adults.”

How would you do?

· The hundreds of schools participating in the Young Consumers of the Year competition successfully answered questions on food and drink, safety and the environment, consumer organisations and finance

· Sample questions were:

a) name the government body responsible for food safety? [Food Standards Agency]

b) Toys with small, detachable parts must not be sold to children under what age? [Three Years]

c) If you buy a shirt labeled 100% silk and then find that it is 50% Polyester, what criminal has been broken [Trade Descriptions Act 1968]

d) Which Government department is responsible for collecting income tax? [Inland Revenue]

e) A decline in general economic activity over a six month period is called what? [a recession]

Further information:

OFT - Scams

Financial Services Authority

Building financial capability in the UK

Money Made Clear

Young Consumers of the Year