Young British consumers need to learn how to manage their money effectively to avoid facing debt management disaster when the get older, it has been claimed.
Becky Boden-Wilkes, a spokesperson for National Debtline charity, insists that the onus is on educational institutions around the country to ensure that young people are given the tools they need to avoid debt in later life.
Indeed, the debt management expert is convinced that giving young consumers a solid understanding of basic money-related matters could make a “massive difference” in how they fare financially as adults.
Mr Boden-Wilkes commented: “There does need to be more education into how financial products work, so that young people understand if they’re taking out a personal loan of £5,000, what is the APR? And what does that actually mean?”
“It is important to learn how to budget and how to use credit responsibly. Financial literacy is a really big thing,” she continued.
According to figures complied by Credit Action, the overall amount of personal debt in the UK increases by close to £1 million every four minutes.