Too few people ‘educated about overdrafts and savings accounts’
Not enough people have been given the level of financial education needed on subjects such as overdrafts and savings accounts, according to one expert.
Ed Bowsher, head of consumer finance at lovemoney.com, said people as young as school-age should be taught about the importance of looking after their money.
"I fear that many people with overdrafts just don’t understand the damage a 19 per cent interest rate can do," he explained.
Mr Bowsher added: "Schoolchildren should be shown how your finances can quickly spiral out of control if you’re paying high interest rates."
The comments come shortly after a pensions expert said that many people nearing retirement age have failed to place enough money aside in pensions or savings accounts for their later years.
Ros Altmann recently said that some pensioners are in denial about the savings which will be needed for their retirement.
She added that there has not been enough encouragement for members of the population to save.
Posted by Tom Britten.