Talking Money

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Published: 03 April 2007

Talking Money

A new poll reveals that young people are struggling to understand money management and financial terms with 25% of 16 to 21-year-olds believing store cards offer better value than credit cards and 40% not knowing what APR means.

Yet the poll also shows that 30% of parents do not discuss debt & credit at home despite 83% having worries that their children will run up debts.

The poll marks the launch of the 'Talking Money' awareness drive from the DfES, designed to get parents and young people discussing finances & budgeting in preparation for going into higher education.

With 92% of parents saying that they would welcome advice on managing money for students, 'Talking Money' marks a partnership between the DfES, TV Money Saving expert Martin Lewis and the National Association of Student Money Advisors' (NASMA) to launch a guide for families followed by a downloadable webcast, radio phone ins and help and assistance online.

The 'Talking Money' poll found that:

· Parents don't feel comfortable about broaching money matters with their children because they are put off by their child's attitudes to money (22% said their child didn't think money matters were important), fear of looking 'like a nag' (48%) and their children finding money discussions 'boring' (13%)

· While young people didn't understand essential financial terms, the majority knew about the implications of borrowing more than you could pay back. 65% knew about IVAs and 85% understood that you could be declared bankrupt at any point

· 26% of 16 to 21-year-olds say they wouldn't tell their parents if they were overdrawn, while 21% wouldn't own up to holding a credit card

· But parents also need a helping hand; 56% of those questioned said they didn't think students could get a credit card

Martin Lewis, creator of www.moneysavingexpert.com, the UK's biggest money site said:

"Sadly in the UK, money is often a taboo subject, which adds to the huge problem of financial illiteracy in the UK.

It's time all parents and students started talking, considering their cash, understanding how the system actually works and discussing how to live within a budget.

Do that and there is no one who should be put off entering higher education because of worries about student debt".

Bill Rammell, Minister for Higher Education, said:

"While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject.

'Talking Money' is designed to raise awareness of the fact that financial help is available to cover the cost of higher education in the form of loans, grants and bursaries.

We are encouraging parents and their children to sit down and talk about money together. "

The Talking Money Guide has been created as a 'one stop shop' on student money and was written by Martin Lewis, money saving expert, in conjunction with the National Association of Student Money Advisors' (NASMA), for the DfES and covers:

· The Student Finance package - what's available

· Real-life stories and letters

· A 'back to basics' guide to money from Martin, including financial jargon busting and budgeting

· And key deadlines for students looking for financial help

Further information

Talking Money Guide

National Association of Student Money Advisors' (NASMA)

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