23rd September 2015
Nearly half of people aged 18-25 have debts other than student loans, new research has found.
The average amount owed by people in this age group is £3,109 on average.
Bank overdrafts (39%) and credit cards (31%) are the most common forms of money woes, according to the research by GoCompare.com, the price comparison website.
Matt Sanders, money spokesperson at Gocompare.com, says: “While half of parents (51%) feel that their grown-up children are responsible with money, they underestimated the average debt of young people by almost half.
People aged 18-25 admit to being £3,109 in debt, on average, while parents of children of a similar age thought that their kids’ debts were closer to £1,659, and that’s not including student loans or mortgages.
“What is clear from the research we carried out and came through when putting this report together, is the importance of learning effective money management techniques early on in life. If young people are prepared for the financial decisions they will have to make as adults they should be able to avoid putting themselves in a difficult situation in the future.
He adds:“Even being able to look past marketing messages or fancy features to find the right credit cards, current accounts, loans and other financial products is hugely important. These are things that people often never encounter until they reach 18 or have left the family home, yet they are expected to know what to do with no practice or guidance.
“As such, adding financial education to the curriculum is necessary and should be applauded. But these lessons don’t need to start and end in the classroom. There are lots of ways that parents can help their children to understand and appreciate money from an early age, such as by involving them in the weekly food shop or setting them tasks to earn their pocket money and save for things they want.”