Young people today, they know nothing! At least that’s one-way of interpreting the latest idea from the Financial Services Authority.
Apparently, when it comes to personal finance the 18-40s just don’t know their stuff, or to put it another way, they don’t know their ISAs from their “I ‘s a going out for some retail therapy.”
The FSA teamed up with academics from Bristol University, and quizzed 5,000 consumers about their knowledge of all things financial.
It emerged that half a million households are in debt, the Brits are no good at saving for the future, and 42% of working adults do not have a pension.
The report also found that 40% of holders of personal equity plans don’t appreciate it could go down in value.
Don’t fear, the FSA has the answer. It’s forking out £10mn for training courses, in which it will go to the place of work and offer free advice, and even introduce individuals to financial advisors.
Surely, consumers’ attitudes are determined by their experiences. The UK has grown non-stop since the early ‘90s, employment has hit record levels and has stayed there- more or less. This has created an implicit belief amongst consumers that things will always get better. Why save for a rainy day, when you have only known clear skies.
This is the stuff that economic cycles are made of. We wish the FSA well, but changing people attitudes through talk is a tough challenge.
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