Tuesday, May 4, 2010
Category:
Secured Loans
According to new research conducted by YouGov on behalf of HSBC and the Personal Finance Education Group (pfeg), children have been ‘strongly impacted’ by the recession.
It was found that more than once a week, 34 percent of the children interviewed have heard adults saying that they cannot buy something as a result of the recession. Furthermore, the research showed that a quarter of them have cut their own expenditure in response to the recession.
The survey involved interviewing over 1,000 children aged nine to ten, as well as their parents, to investigate the understanding that children have of money. The survey was commissioned as part of the ‘What Money Means’ programme, which is an initiative to expand financial education in primary schools. Some key findings reportedly include:
- Children’s good instincts regarding money have been reinforced by the recession. Rather than getting into debt, 80 percent said that they would save up for something. If handed £20, over 50 percent said that they would save a proportion of it.
- Children feel that ‘cutting back on luxuries’ is the most effective way to get through the recession.
- In terms of parental attitudes towards the economy, just 26 percent feel more optimistic than they did this time last year.
Chief Executive of pfeg, Wendy van den Hende, commented: "The survey shows that children have very good instincts towards money and they seem to be natural savers. This does not always last into adulthood, which is why we are working to improve financial education in schools to reinforce these instincts. It is good to see that parents also agree that this is important.
“We believe that What Money Means has made a real difference. Children learn the value of money, the dangers of getting into debt and the basics about the banking system. Whoever wins the next election, and whatever happens to the economy financial education needs to be kept on the agenda.”
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Homeowners who are finding their finances tight at the moment, perhaps due to expensive credit card repayments each month, could consider taking out a secured loan to tie up such debts. One of many finance options available, a secured loan for debt
consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. What’s more, this single monthly repayment could even be lower than the sum of existing commitments, thereby leaving the borrower with more money each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
