Aug 3 2007
Children could avoid future problems with debt by learning about financial issues from a young age, a financial education charity suggests.
Commenting on government figures showing that 26,956 people became insolvent in the second quarter of 2007, the ifs School of Finance is urging politicians to place personal finance lessons on an equal footing with subjects such as modern languages, history and geography in UK schools.
The charity holds that is important to educate children about the benefits of good financial management and savings schemes such as individual savings accounts and child trust funds.
Rod McKee, head of financial capability at the ifs School of Finance, said: "The insolvency figures released today again highlight the need to ensure people have sufficient financial skills to make informed financial decisions. Equipped with such skills the number of people who find themselves facing unmanageable debt problems will reduce considerably."
The number of people becoming insolvent soared by 4.2 per cent during the three months to June this year, compared with the same period of 2006, and ifs School of Finance argues that placing personal finance in the core schools curriculum could help tackle the rising problem of consumer debt in Britain.
More than 200 schools across Britain currently offer a GCSE equivalent in personal finance and studies have indicated that those students who take the course are able to manage their finances better.
