Thursday 18th of March 2010
It would appear that your kids have quite a lot more financial sense than is probably expected of them, according to a new study.
Kids have revealed that cutting back on luxuries is the best way to handle the economic downturn, although if you do not have such restraint you may now find yourself deep in credit and store card debt.
The YouGov poll on behalf of the Personal Finance Education Group and HSBC reveals that almost half of children think as a parent you should cut back on buying toys and trips out.
But if your need to spend has resulted in you piling purchases on to credit and store cards then you may decide to get some answers on individual voluntary arrangements (IVAs) to help pull your family out of the red.
An IVA will merge your store and credit cards into one, more affordable, monthly repayment. And undertaking an IVA could also help you practice a little restraint when it comes to shopping, as if you do not meet your repayments you may be at risk of further legal action by your creditors.
It seems that kids are well aware of the importance of staying out of the red, with over half claiming that if they were given £20 they would save some of it.
Likewise, the YouGov poll also shows that 80 per cent of youngsters would rather set aside their cash to buy something, rather than get into debt to purchase an item they could not afford.
"It is very reassuring to see that many children want to save rather than get into debt. However there is a danger of children picking up bad habits from adults. HSBC actively supports financial education at an early age because it can reinforce children’s better instincts," says Peter Bull, head of HSBC in the community.
Seeing you repay your debt through an IVA, rather than looking for an easy way to get out of the red, could help your kids understand the importance of looking after finances.
By Mark Waterman
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs are one way to avoid bankruptcy
