Basic finance skills important for young people

Young people need to be taught basic finance skills such as budgeting and using credit, a charity has claimed.

These skills should be instilled in them before they leave home to set up on their own, National Debtline said today.

Spokeswoman Becky Boden-Wilkes believes it is “important” for young people to learn how to budget and how to use credit responsibly.

She says that debt “isn’t a bad thing by any means” and that most people use credit and have “a personal loan, credit card or mortgage” to get through financial rough patches.

However, Ms Boden-Wilkes believes there is a need for things such as APR to be explained to young people so they can fully understand what they are getting into when they take on credit.

According to This is Money, students leaving university this year will have a cumulative debt of £3.2 billion.

© Adfero Ltd

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