13 March 2008
Knowing how to operate a current account is not enough preparation for young Britons to manage their money independently, it has been suggested.
According to the director of policy for the Personal Finance Education Group (pfeg), many young people believe they know how to manage their money well.
Indeed, a Future Leaders Survey 07/08 by Forum for the Future, UCAS and Friends Provident discovered that eight in ten prospective university students believe they are very good or quite good at managing their cash.
However, the pfeg's Alastair Mathews commented that the majority of students come from "protected environments" and could struggle when they need to deal with current accounts, credit cards and personal loans.
He said when they leave home, they are "suddenly exposed to a quite different level of managing money independently, with all sorts of new demands, interests and possibilities on which to spend it".
More financial education could help soften this blow and prepare students better for managing their money, the pfeg suggests.
An educational charity, the pfeg aims to equip all young people with financial confidence, skills and knowledge before they leave school.