LET’S TALK ABOUT MONEY
Equifax Survey Reveals That 43% Of 18-21 Year Olds Already Have Over £5,000 Of Debt!
London 29th March 2007 – A recent survey* from leading online credit information provider, Equifax, reveals that 43% of 18 to 21 year olds already have over £5,000 worth of debt. Even more worrying is the fact that 29% are hiding the debt from their parents. These latest survey results highlight the need for young people to be able to talk to their parents about money. Equifax therefore welcomes news of the launch of the ‘Talking Money’ awareness campaign from the DfES, aimed at getting parents and young people discussing finances and budgeting in preparation for higher education.
As part of the launch, the DfES conducted a poll, which showed that one in three parents do not discuss debt and credit at home, despite 83% having worries that their children will run up debts.
Neil Munroe, External Affairs Director Equifax comments, “Both the DfES and our own research reinforces the significance of getting young people to recognise the importance of savings and debt. The ‘Talking Money’ campaign is a welcome step in the right direction and will help parents talk to their children before they get into financial difficulties.
“The DfES poll highlighted that parents feel uncomfortable talking about money with their children, in fear of being thought of as boring or a nag. However, just as relationships and drinking are important conversations parents have with their children, money and savings should also be discussed around the dinner table. It doesn’t need to be in the form of a lecture, but it’s really worth encouraging children to open saving accounts and get them in the habit of managing their money such as their allowance and birthday money.
“The rising cost of further education means more and more young people have to borrow to fund degrees and college ” continued Neil Munroe. “Indeed, another survey** we recently conducted revealed that school leavers may be under-estimating the cost of living while at university and would consider bankruptcy as their way out. Add to this the fact that the DfES poll shows that 56% of parents didn’t think students could get a credit card and it is clear that there is a need for greater awareness about money matters on both sides.
“By talking to young people now, parents can help secure their future and set them on the road to healthy finances.”
For further information on how to obtain your credit report and advice on young people and credit visit www.equifax.co.uk
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*Debt and Savings Survey conducted with over 700 Equifax customers in March 2007
** Student Survey conducted in August 2006.
