- 28
- Mar
Families are failing to talk about personal finance, a new study has revealed.
According to research by the Department for Education and Skills (DfES), some 40 per cent of 16 to 21-year-olds do not know what APR, annual percentage rate, stands for.
Minister for higher education Bill Rammell said: "While parents are happy to talk with their offspring about socialising, boyfriends and girlfriends or getting a job, it would appear that in many families money remains the last taboo subject."
The study also reported that 82 per cent of adults were concerned that their children would develop debt management problems in later life.
However, a third of parents were reported to do not discuss financial issues such as secured loans while at home.
DfES also revealed that young people are aware of various debt management procedures, with about 66 per cent claiming they know about individual voluntary arrangements.
Earlier this week, John Slater claimed that making financial advice accessible to children could be vital in preventing future debt management problems.
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