The lack of financial understanding and knowledge amongst young people has been highlighted by research focused on financial products conducted as part of the Money for Life Programme, developed by Lloyds Banking Group (Lloyds) in partnership with the National Skills Academy for Financial Services (Skills Academy). Nearly 600 students from further education colleges were surveyed and a staggering 42.7% failed to realise that store cards represent a form of debt.
The results showed an alarming lack of even basic financial understanding with 38% of students unable to explain the difference between a credit and debit card. Also, when it comes to protecting themselves with vital travel insurance, a massive 40% were oblivious to the risks they would face without it. Another 52.2% students did not consider door step lenders as a liability.
To understand the increased financial pressures on students of all ages, the Skills Academy and Lloyds are holding a Money for Life conference today for the further education, adult and community learning sector, followed by a Parliamentary reception hosted by Justin Tomlinson MP, chairman of the All-Party Parliamentary Group for Financial Education for Young People. During the day, the outcomes of the first year of Money for Life, and the plans for the second year of the programme will be presented. The events aim to raise the importance of money management, and to present the wide range of resources, training and support that has been developed through the Money for Life Programme.
At the event, the Skills Academy will launch two new qualifications on Adult Financial Capability: ‘Teach Me’ and ‘Teach Others’ accredited by the Open College Network (OCN). ‘Teach Me’ is aimed at anyone who is looking to improve their financial capability, particularly further education practitioners, and takes approximately 30 hours to complete plus the final assignment.
The qualification covers a series of core financial capability topics including product knowledge, financial exclusion and its implications, as well as key terminology and sources of help and support.
‘Teach Others’ is a two days course which enables those working in non-teaching positions within further education, outreach centers and key agencies in the community to be able to teach others financial capability.
Sylvia Perrins, CEO National Skills Academy for Financial Services comments: "The work we have undertaken as part of the Money for Life project and the findings of this survey show the urgent need to help students improve their knowledge of financial products. These new programmes aim to make a real and lasting impact on people’s confidence when dealing with financial issues and the ability to improve their money management skills.”
Graham Lindsay, financial inclusion champion for Lloyds Banking Group, said: "It is clear that there is still a long way to go to educate young people so that they can understand how to better manage their money and make informed decisions about the financial products and services they choose. We are committed to working with the Further Education, Adult and Community Learning Sector to improve the financial capability of young people in order that they can manage their finances today, and plan for the future.”