Will financial education strengthen the UK’s future?

You’ve said it! Many of these conversations show how many people are genuinely ignorant of the facts of financial life – whether loans, credit cards, mortgages, working out energy bills and so on, as well as the way financial institutions and companies work (or should, at least!). These should all be taught so the pitfalls can be avoided. I wasn’t, like most people, formally taught – I learnt from my parents to some extent, but then the hard way by having to do it. I think I started with a responsible attitude to money because I had little, which helped me to be critical of financial products.

I support anything that will help make children better prepared for life. What concerns me most is the fact that so many people live their lives on credit, when they should be saving and spending only when they have enough money, which will save a fortune in interest charges. You don’t need to know anything about credit card interest charges other than the fact that they are all extortionate and the balance must be cleared each month to avoid a continuous drain on your finances.

A major problem is that university students are forced into debt because successive governments have pushed so many people into higher education and cannot afford to support them properly.

Understanding the basics of personal finances will at least give young people the opportunity to tell good from bad. The problem with debit and credit cards is that they encourage impulse spending – you don’t need the cash in your wallet. But used properly they are extremely convenient, and essential for on-line transactions. The key is to use a credit card properly – pay off in full monthly.

We all mostly have to live in debt to be able to purchase a house – understanding the range of loans and financial consequences can only be helpful.

As for university students – yes, we have opened up too many places in poor-standard institutions and courses that devalue a degree, and probably lead too many to think it will give them assured employment. Not so. They need to weigh up the prospects of employment and the financial gain against the cost.

Malc.Moore – I do understand what you say. But entering a downward spiral of debt fuelled by extortionate interest rates is something we need to try to combat – why these lenders are licensed beats me.
I don’t think private schooling may be any better at teaching money sense than state schools – the pupils may not have a home background that teaches frugality, something they may have to deal with if the inheritance runs out.