Many young people misunderstand credit cards - 13/02/2007

A survey of British teenagers has found that one in twenty thinks banks will voluntarily waive credit card debt.

The survey was undertaken by the Personal Finance Education Group, a national money charity.

A quarter of those surveyed also felt that credit cards are "just something that allows people to buy goods and services", revealing a lack of understanding of the nature of credit card debt.

Concerned PFEG chief executive Wendy van den Hende, said: "We owe it to our young people to ensure that they have the financial acumen to deal with the responsibilities of being an adult".

Despite this, there were signs that some at least are responsible, with 52 per cent saying they would save half and spend half of any windfall they received.

Overall, 66 per cent of teenagers said they thought about money every day, which Ms van den Hende felt demonstrated they were "relatively clued up on the mechanics of spending and saving money".

PFEG is an educational charity that aims to impart knowledge of financial matters to young people by working with schoolteachers and young people aged four to 19.

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