With new research revealing that many young people about to turn 18 in Wales are ill-prepared for dealing with adult financial responsibilities, North Wales Assembly Member Mark Isherwood has called on the Welsh Government to address the problem.
Raising the matter with the First Minister in the Assembly Chamber yesterday, Mr Isherwood said:
“Although children who gain experience of budgeting, spending and saving from an early age are more likely to be able to manage their finances as they take on financial responsibilities as they grow older, research from the Money Advice Service on ‘the Financial Capability of Children, Young People and their Parents in Wales’, launched during last November's Financial Capability Week, found that many young people about to turn 18 in Wales are ill-prepared for dealing with adult financial responsibilities. Just 35 per cent of children between seven and 17 had learned about money management in school and only 7 per cent had talked with their teachers about money.
“Will you therefore encourage your Government to revisit the recommendations of the 2010 Communities and Culture Committee Report on ‘Financial Inclusion and the Impact of Financial Education’, which made clear recommendations in these areas?
“And can you also confirm what role, if any, the Welsh Government will be taking in UK Government proposals for a ‘breathing space’ scheme, to provide individuals in debt with up to 6 weeks free from further interest, charges and enforcement action, to give them time to seek financial advice, hopefully - and I declare an interest - from independent third sector bodies, such as those two of my daughters work for, providing this impartial advice to people?
The First Minister agreed that there is a need for young people to be financially educated and said it is part of the new curriculum.
With regards Mr Isherwood’s second point, the First Minister said: “It is something that we need to consider, as to how we, if we look to take it forward, how we take it forward, whether it's on a Wales basis or working with other countries in the UK.”