29 March 2007
Parents are failing to talk to their children about money matters and this is leading to many people struggling to understand their finances.
Research, carried out by the Department for Education and Skills (DfES), found that many aged between 16 and 21 do not know the meaning of common financial terms.
It was highlighted that 40% of people in this age group are unaware of the meaning of APR, while 25% believe that store cards offer better value than credit cards.
The study was carried out to mark the launch of the Talking Money drive by the DfES which aims to encourage parents to discuss financial issues with their children.
The need for action is all too evident when looking at the results from the survey, which showed that 30% of parents do not discuss money despite 83% being concerned that their children are running up debt.
"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," commented Minister for Higher Education Bill Rammell.
"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."
As part of the launch of Talking Money, the DfES has compiled a guide which contains information on what is available to students, real-life case studies and a jargon buster.
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