Government addresses financial illiteracy

Education is the key if the UK is to bring up the next generation free from the burden of debt, the Institute of Chartered Accountants in England and Wales (ICAEW) has claimed.

The ICAEW has announced plans for a financial literacy programme it runs and will use as part of a government project to teach the UK’s children about finance-related issues.

The decision by the government to increase financial education for children comes after research by the Institute of Financial Services revealed 79 per cent of people do not know what an APR (Annual Percentage Rate) is and 50 per cent of people did not know what per cent means.

Graham Duggan, leader of the financial literacy programme, feels that focusing on children is the best way to approach tackling financial illiteracy.

“If we want a society where every child genuinely has the best chance of improving themselves through hard work then we need to contribute to that process by investing as a profession and as a society in our next generation, giving them the information and support they need to make the best financial choices,” said Mr Duggan.