Debt management may be avoided by good financial education

The debt management needs that many adults face may be avoided by the next generation if they are sufficiently well educated about money.

And a Clydesdale Bank/Yorkshire Bank survey has suggested many parents regard teaching their kids about how to handle finance is a very important priority.

While 75 per cent said passing on morals was important and 74 per cent said the same about good manners, 48 per cent indicated they felt financial education is a key area where adults can teach their youngsters skills they can benefit from.

Retail director for Clydesdale Bank Steve Reid said: "Financial education is an important part of growing up and it is encouraging that so many primary school children are already learning about the value of money both at school and at home. Hopefully this will increase in time as financial education becomes more accessible."

Such a situation may help ensure the next generation endures fewer financial problems and less unpayable debt than the current one.

The survey found that 18 per cent of adults did not have anyone teaching them financial skills when they were children, which may account for the failures of some to handle their money and borrowing in a way that avoids getting into debt.

However, for those who do owe money, debt management plans, consolidation loans or even individual voluntary arrangements may all offer ways of solving their problems.

Those who may benefit from a better understanding of what benefits them financially may include those with packaged bank accounts.

A study by Which? indicated 30 per cent of consumers never use the benefits that come with such accounts, meaning between £240 million and £320 million is paid to banks in monthly fees with nothing in return.

By Joe White