Financial education bid to beat debt

With problems like credit card debt, repossession and frequent resorts to IVA help or bankruptcy, it may seem clear enough that something needs to be done about the nation’s financial literacy levels.

Such a view appears to be strongly held in parliament, where over 140 MPs have signed up to join The All Party Parliamentary Group for Financial Education for Young People, which was launched yesterday (January 31st).

It is chaired by Justin Tomlinson, who became Conservative MP for Swindon North last year, but its support comes from right across the political spectrum, something that may make it a more powerful voice for achieving its aim.

Speaking at the launch, Mr Tomlinson remarked: “I have been working hard to secure cross-party support to help champion this cause, so the next generation is equipped to confidently address the financial challenges ahead.”

The basis of the group’s argument is that if financial education is made a mandatory part of the curriculum, the next generation will group up more savvy when it comes to money, avoiding the sort of problems seen so frequently among consumers now.

AA Financial Services has welcomed the move, with director Mark Huggins noting the size of the group is significant because it is the largest all-party parliamentary group in the House of Commons.

He backed the plan for more education, observing: “Too many people get into financial difficulties because they don’t know how to handle their money properly.”

However, Mr Higgins predicted if financial education is given to the young they will be “much less likely” to repeat the errors of their parents.

By Joe White