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Parents lose faith in debt-free future

Parents lose faith in debt-free future

Category: Debt

Updated: 04/11/2010
First Published: 02/11/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Despite the focus on responsible lending following the financial crash, many parents still feel that in the future it will be easier for their children to get into debt than it was for them.

The new study, conducted by M&S Money, highlights the concerns parents have when it comes to their children being able to handle their future finances. The research has found that a quarter of British parents believe it will be easier for their kids to get into debt than it was for them - despite it being much harder to access credit following the banking crisis.

Worryingly, a third think that their children will be less able to manage their money than they are. One in five (19%) parents believes that not enough practical guidance at school and too much jargon will be the reasons for their children being ill-equipped to understand and deal with their own finances.

On a more positive note, the study did find that almost a third of parents believe that sharing their own experiences can help their children learn and improve their financial chances in the future.

Parents said that by being more transparent with their children than their parents were with them with regards to family finances and integrating finance into the school syllabus would help their children to be more money savvy.

"Having been through one of the most complicated couple of years for family finances the importance of getting things right for the future has never been more important," said Colin Kersley, chief executive of M&S Money.

"Too many of today's parents are not yet confident about the nation's efforts to improve financial awareness and ability for the next generation

"Providing practical guidance in schools as well as offering simple and transparent products is really important.

"The goal that our children will be more able to handle their own finances is worthwhile and one that industry, consumers and Government must work on together."

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