Next generation of borrowers need lessons on personal finance

While millions of UK adults are currently bogged down in debts built up over a decade or more of easy borrowing, it needn't be the case that the next generation find themselves stuck in the red a few years from now.

Though calls for Britain's schoolchildren to be taught about personal finance matters such as credit cards and personal loans alongside more traditional subjects like maths and English are nothing new, ever since the effects of the credit crunch started to be felt, they have grown steadily stronger.

Indeed, recent research carried out by the Association of Investment Companies found that 51 per cent of British parents believe that, had they been better taught about money matters while they were at school, they would be in a far better position right now.

Understandably, many are keen to ensure that their offspring don't slide into the red just as easily as they may have done and, though teaching children the value of saying 'no' to rampant consumerism certainly has its place, it is also widely believed that teachers should be tasked with educating youngsters on complex issues such as interest rates and taxation to stand them in good stead for the future.

Wendy van den Hende, chief executive of the charity Personal Finance Education Group (pfeg), explained: "We just have to look at what's happened in the world to know how important it is that we can all manage our money sensibly and make decisions that won't have dire consequences for us.

"The case for young people learning about finances is very clear. When they leave school, they now have to, make quite complex financial decisions and they need to be in a situation where they can understand what they're doing at a very early age."

Of course, many teachers would argue that they have enough to be getting on with and that parents should take on the responsibility of teaching their children about personal loans and debts – an attitude that is likely to be at least partly responsible for the fact that just one in four teachers currently touches on personal finances with their pupils.

However, it now seems the case that the powers that be are finally waking up to the fact that both schools and the home have a role to play in ensuring the next generation of consumers are well-equipped to deal with the complex world of money, with HM Revenue & Customs recently launching its 'Tax Matters' programme for 11 to 19-year-olds.

Until personal finance becomes an everyday part of school life, however, it may be the case that parents need to take on the responsibility to imparting their acquired financial knowledge on their kids for some time yet.