On Friday 21 July, as featured on Channel 4 News, national youth work charity UK Youth launched a nationwide Financial Awareness Toolkit and Financial Challenge programme for young people. The programme is supported by the HBOS Foundation and will enable thousands of young people across the UK to improve and develop their money management skills.
With levels of personal debt sharply on the increase in the UK, young people increasingly face greater money management challenges. The UK Youth programme seeks to help young people avoid those pitfalls and to learn about key issues such as buying or renting a home, borrowing money, understanding their consumer rights, understanding basic money management (e.g. personal budgeting, ways of paying for goods and services, understanding pay slips, credit management, etc.).
“I was lucky enough to have strong financial role models at home. My parents taught me how to budget and looking after my spending but for young people who don’t get that help at home or school, projects like this in youth clubs are brilliant. It can help support you and teach you not to go out and blow your money but to cover what needs to be covered first.” – Chelsea, 18
With more and more young people in the UK finding themselves in debt having access to a programme like the Financial Challenge early on can make a real difference. The Consumer Credit Counselling Service (CCCS) found recently that average debts in the under-25s seeking help has increased by “around a quarter in two years, from £11,833 in 2003 to £14,984 in 2005”[1].
“Now that I’ve left school and I’m working, I struggle with managing my money. It’s hard not to spend more than I have and getting help to learn how to do this would really make a difference to me.” – Lee, 17
A recent FSA report highlighted:
- 29% of 16-24 year olds said they would not know how to prepare and manage a weekly budget;
- 19% of 22-24 year olds have short-term debts over £5,000;
- 62% of young people said if they got into money trouble or debt they would not be able to name any advice or support services they could turn to for advice
- 94% of 16 year olds believe it is important to know how to manage money; only 53% have been taught how to [2]
“Programmes like the UK Youth Financial Challenge can really help young people like me to make more of my money, budget better and help me not get into debt.” – Donata, 18
For further details of the Financial Awareness Toolkit and Financial Challenge Programme contact Charmaine Williams, YAA Co-ordinator at UK Youth on 020 7242 4045 ext.33 or at Charmaine@ukyouth.org
[1] Guardian article: “More young people seek bankruptcy” - http://money.guardian.co.uk/creditanddebt/debt/story/0,1456,1569016,00.html
[2] Credit Action statistics on debt and money management: http://www.creditaction.org.uk/debtstats.htm
