Diet, holiday or sort out your finances?

Leading financial education charity, the ifs School of Finance, has suggested that FSA survey results released today indicate a step change in financial education is needed for the UK to achieve financial capability.

New figures published today by the Financial Services Authority (FSA) show that 48% of people are more likely to go on a diet or book a holiday than try to sort out their finances next month whilst just under a quarter (24%) of 16 to 44-year-olds are worried or scared about their bills arriving in the new year.

Chris Pond, FSA Director of Financial Capability, warned that, “The consequences of not managing your money properly can be devastating.”

Anne Kiem, Director of External Affairs at the ifsSchool of Finance, concluded: “The figures released by the FSA today add to the wealth of existing evidence that the general public are largely incapable of managing their finances effectively.

We are helping to address this problem by providing standalone GCSE, AS and A level equivalent qualifications in personal finance to more than 10,000 students next year alone. These qualifications will help to ensure many gain the skills necessary to make informed financial decisions next year, as independently proven by the University of Manchester.

However, hundreds of thousands of students across the UK continue to miss out on these opportunities and this is why we would like to see Government ensure all schools offer their students the choice of taking a standalone qualification in personal finance.

We very much hope that the New Year will bring a new approach to the issue from policymakers.”

The ifs School of Finance offer Foundation and Intermediate Certificates in Personal Finance (GCSE equivalent) and a Certificate and Diploma in Financial Studies (AS and A level equivalent).

Further information is available from financialcapability.co.uk.