Tuesday, August 1, 2006
Category:
Personal Finance Tips
Poor consumer knowledge is putting over two million UK households at risk in the event of an economic downturn, the Financial Services Authority (FSA) has claimed.
Bristol University quizzed 5,000 people on their knowledge of consumer issues, the largest ever survey of its kind, finding that 18 to 40 year olds were especially vulnerable.
Although able to make ends meet, the survey discovered that 70 per cent of Britons do not have means available to see them through an unexpected period without income, while those at risk are struggling to save for the future.
"The cost of not having the necessary skills to make sound financial decisions is becoming increasingly significant," said John Tiner, chief executive of the FSA, on March 27th 2006.
"We have to find new innovative, creative ways to grab the attention of young people," he said.
Over the next five years the FSA plans to spend £10 million on a series of educational initiatives focused towards young people.
They hope to reduce the number of people struggling to meet their financial commitments, currently estimated at 500,000 despite today's favourable economic climate.
