Should education for younger people regarding the effects of serious debt be the responsibility of society, or is it up to our government to lead the way?

Numerous sites (including this one) have reported that one of the most apparent causes of debt in the UK can be rooted to a lack of knowledge on behalf of the average consumer, when it comes to managing personal finances. However, the number one “hot topic” at the moment is the debate as to who is ultimately responsible for dishing out this most valuable of knowledge?

The easiest and most common answer to this question is the Government. Many people believe that practical money management and the perils of debt should be taught to our children in schools, at an early age. It would certainly seem to make sense that money management should form part of the annual itinerary, as a major part of comprehensive education is geared towards preparing young people for their adult life. But how practical is education of this type if taught in schools?

We’re not saying that financial education shouldn’t be taught in schools “far from it”, but more that it should only form a percentage of their “worldly education”. The responsibility to teach any type of practical skill or trait should really come from the parents, and ultimately that is the exact category that money management falls into. Research shows that very few children are encouraged to save, which leads to a large majority being unable to appreciate the value of saving once they have reached adulthood. One of the primary reasons for our current debt predicament stems from this problem, as many people are living their lives “hand to mouth” with no real savings to speak of.

Many charities and consumer groups are urging parents to discuss money related matters with their children. However, in a confusing twist money and debt are considered to be the most taboo of subjects, with many parents preferring to discuss relationships, careers and even drugs before touching finances. It appears that older generations are passing ignorance onto their children through feelings of shame and embarrassment.

A recent report on the current state of our economy suggests that the national debt level is increasing at a phenomenal rate and if effective measures aren’t put into place soon, we run the risk of a possible financial collapse. The national debt crisis will not fix itself and can only be rectified through the combined efforts of everyone.