Personal finance education in schools should be practical as well as theoretical, one organisation has advised.

According to the Personal Finance Education Group (PFEG), many students who have had a business and economics education are still clueless about how to manage their credit card.

The organisation said that group activities and practical exercises play an important part in financial education and can be incorporated into the curriculum of almost any subject.

Alastair Mathews, director of policy for PFEG, said: "Theoretical financial education is not a lot of help.

"We have always said that it's important in giving the financial education that young people need, that they get practice of financial decision making."

He also said that mathematics teachers should integrate personal finance education in their lessons to "illustrate principles".

According to a joint study by Forum for the Future and insurers Friends Provident, 81 per cent of this year's prospective university students claim to be 'very' or 'quite' good at managing money.

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