As a former teacher I have spoken to young people about money many times. Many of my 6th form students would work alongside studying. I was always telling them to get the balance right as studying is vital to do well. During A Levels and a degree independent study is what makes the difference. This is compromised if they are working long hours.
Learning how to manage your personal finance is an essential life skill and getting it right from a young age often sets the presedence for the future. Many students have said to me previously that they wish they were taught about personal fianance in school. Young people want to understand about mortages, tax contributions and interest rates. If we teach this we are going to make a real difference to their futures. However parents also have a role in teaching good money management.
University is expensive and I can fully understand how some students find themselves in debt quickly. As a mum to an almost 18 year old I am using this year to help prepare her for living independently at University. This includes teaching her how to cook nutritious meals, how to budget and look after herself generally.
Did you know:
- 43% of students are using their overdraft, 12% have signed up to a credit card and 2% use a student loan to supplement their student loan
- Nearly a third of 16-24 year olds have financial debts of more than 40% of their income
- 37% of 18 to 24 year olds currently hold one or more credit card, an overdraft or other form of borrowing, owing a combined average of £2,989
- Obtaining credit is a good thing to help improve a credit file, but managing that debt is key
- “We think it’s vital that the UK finance sector gets onboard the Get Smart About Credit initiative, promoting awareness about the issue of young people and debt,” Pete Mugleston, Director at Online Mortgage Advisor said. “Working with banks, credit agencies, educators and other big players in the finance space is necessary in order to stamp out debt for young people.”
In order to help educate students and young people a credit awarenesss campaign demonstrates how important it is to keep your credit score clean. The tool provides the information needed to help young people prepare for their future. Getting a good mortage rate is crucial and the tool gives examples of the best and worst rates. It also has tips on how young people can make the most of saving. This is another important life skill that I have been teaching Chloe. Thankfully because her dad and myself are good with money I am hoping that our children have picked up the same ethos and approach. To know more about my money saving ways check out our personal finance blog Mums Savvy Savings.
Where did you learn about managing your personal finances and paying bills?
