Which? is calling for compulsory personal finance education in schools and colleges ahead of new research out this week which will show young people (18-29 year olds) are bearing the brunt of the current economic crisis.
The findings, which will be released in Which?’s first Quarterly Consumer Report due out on Tuesday, show young people’s living standards have fallen the most – by twice the national average (-1.8% compared to -0.9%).
- Young people have the highest debt to income ratio – owing 47% of their annual income, compared to a national average of 21% so for every pound they earn, they owe 47p;
- One in ten young people admitted to defaulting on a bill in the past month;
- 45% say they always or often run out of money each month (compared with 38% of all consumers).
Which? executive director, Richard Lloyd, said:
“Our research shows the extent to which young people are bearing the brunt of this economic crisis. The recession has hit them hardest, they’re struggling to get on the housing ladder, dipping in to savings to pay for monthly expenses and relying on friends and family for hand outs to get by. Which? has long been calling for compulsory financial education in schools so young people are properly equipped to manage their money better. We also want banks to step up to the mark to make financial management a lot easier, simpler and cheaper for young people.”