CYP Now - Policy & Practice: Policy into Practice - Children must learn to avoid the debt trap early

Last month the Bank of England warned that with household debts and mortgages totalling more than one trillion pounds, Britain is set to have one of the highest rates of personal debt in Europe. With this in mind, how can we make sure children are taught good financial management habits and understand they are in control of their future financial choices?

With student loans now a fact of life and targets of 50 per cent of school leavers to attend university in the near future, being in debt will soon be commonplace for young people. Worryingly, we know that many young people have a real lack of financial knowledge.

A survey by the financial experts Sesame this year showed that 77 per cent of teenagers didn't know the price of a pint of milk and believed "being in the red" meant being embarrassed. Royal Bank of Scotland research also showed that 54 per cent of teenagers don't keep track of what they are spending and 46 per cent don't understand the difference between a debit and a credit card.

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