DfES and Martin Lewis launch Talking Money drive
A new poll released today reveals that young people are struggling to understand money management and financial terms with a quarter of 16 to 21-year-olds (25 per cent) believing store cards offer better value than credit cards and more than a third (40 per cent) not knowing what APR means. Yet the poll also shows that one in three parents (30 per cent) do not discuss debt and credit at home despite the majority (83 per cent) having worries that their children will run up debts.
The poll marks the launch of the ‘Talking Money’ awareness drive from the DfES, designed to get parents and young people discussing finances and budgeting in preparation for going into higher education. With 92 per cent of parents saying that they would welcome advice on managing money for students, ‘Talking Money’ marks a partnership between the DfES, TV Money Saving expert Martin Lewis and the National Association of Student Money Advisors’ (NASMA) to launch a guide for families followed by a downloadable webcast, radio phone ins and help and assistance online.
The ‘Talking Money’ poll found that:
Parents don’t feel comfortable about broaching money matters with their children because they are put off by their child’s attitudes to money (22 per cent said their child didn’t think money matters were important), fear of looking ‘like a nag’ (48 per cent) and their children finding money discussions ‘boring’ (13 per cent)
While young people didn’t understand essential financial terms, the majority knew about the implications of borrowing more than you could pay back. Two thirds (65 per cent) knew about IVAs and 85 per cent understood that you could be declared bankrupt at any point
A quarter of 16 to 21-year-olds (26 per cent) say they wouldn’t tell their parents if they were overdrawn, while one in five (21 per cent) wouldn’t own up to holding a credit card
But parents also need a helping hand; 56 per cent of those questioned said they didn’t think students could get a credit card
Martin Lewis, creator of www.moneysavingexpert.com, the UK’s biggest money site said: “Sadly in the UK, money is often a taboo subject, which adds to the huge problem of financial illiteracy in the UK. It's time all parents and students started talking, considering their cash, understanding how the system actually works and discussing how to live within a budget. Do that and there is no one who should be put off entering higher education because of worries about student debt".
Bill Rammell, Minister for Higher Education, said: “While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject. ‘Talking Money’ is designed to raise awareness of the fact that financial help is available to cover the cost of higher education in the form of loans, grants and bursaries. We are encouraging parents and their children to sit down and talk about money together. ”
The Talking Money Guide has been created as a ‘one stop shop’ on student money. The guide was written by Martin Lewis, money saving expert, in conjunction with the National Association of Student Money Advisors’ (NASMA), for the DfES and covers:
The Student Finance package – what’s available Real-life stories and letters A ‘back to basics’ guide to money from Martin, including financial jargon busting and budgeting And key deadlines for students looking for financial help
Visit www.moneysavingexpert.com/parentsguide to download a free PDF version of the guide. To receive a free printed version, send an e-mail with your name and address to [email protected] or if you're not on the internet, please call 020 7369 5612 and leave your name and address.
The radio phone ins will be taking place on the morning of March 28 on regional radio stations and the Martin Lewis’ webcast will be available on www.moneysavingexpert.com from March 29.