Wednesday 15th of July 2009
Individual voluntary arrangements (IVA) may be required by a number of parents across the UK, but one report has said children need to be taught money management.
Chairperson of the Financial Services Authority (FSA) Lord Adair Turner said that wider monetary education is required if people are going to stay on top of their finances.
While IVA advice could help mums and dads clear their debt during the current recession, Briton’s youngsters may want to avoid the need for such action in the future by widening their financial knowledge.
An article on Citywire’s Money Blog stated that children need to be taught about saving, running a bank account, budgeting and keeping a clean credit track record.
"It is common sense that people armed with skills, such as budgeting and planning ahead, as well as up-to-date information about new products, will be better able to cope with what life throws at them," Lord Turner told the FSA’s Financial Capability conference dinner.
Learning how to manage money to avoid the need for an IVA could be particularly beneficial to younger Britons, after recent reports have highlighted that an increasing number of under-25s are going bankrupt because of an inability to rein in spending and to keep up with financial commitments.
By Hayley Jones
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- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA help for 'credit card-spending holidaymakers'
