Wednesday 3rd of November 2010
Young people's spending habits may result in debt mounting up and lead them to ask individual voluntary arrangement questions in order to clean their slate and start over financially.
Wendy van den Hende, chief executive of the Personal Finance Education Group, said there is now less of a correlation between how much individuals are spending and the amount of money they actually have.
This is because not many people are using cash anymore – as was the case with previous generations - with Brits today preferring plastic finance, she noted.
Ms van der Hende added as a result of this shift in culture it is now easier to rack up outgoings that can amount to more than an individual has available to them.
She observed that the introduction of financial education is now taking place and stated it is important schools are given adequate support to maintain this momentum.
A recent survey carried out by M&S Money found a quarter of parents believe their children are more likely to get themselves into debt - despite the current economic climate - with a fifth citing a lack of knowledge about finances as a reason for this.
By Neil Burton
