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Financial education should cover UK mortgages

Date: Mon, 12 Sep 2005

A recent report has found that parents are not doing enough to educate their children about financial matters such as mortgages.

The National Savings & Investment (NS&I) Summer Savings Survey has found that, although 82 per cent of all parents think that their children's financial education should begin at an early age, most find it difficult to talk to them about financial matters, and it is estimated that one in four children will enter adulthood having received no financial education whatsoever.

The main reason for this appears to be that many parents are insecure in their own financial knowledge, with limited understanding of finance's more complicated concepts.

Dax Harkins, senior savings strategist at National Savings and Investments, commented: "With the easy availability of credit and challenges like getting on the housing ladder getting even tougher, the sooner children are educated about financial matters and the better their understanding; the easier it will be for them to make responsible decisions later on in life."

One of the survey's most troubling findings is that only 35 per cent of parents discuss the issue of debts, such as mortgages, with their children.

It also found that only 48 per cent have discussed budgeting, while only 28 per cent have discussed credit card bills.

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