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Avoid debt by urging children to save, expert says


29/08/2008 16:56:00

Parents are being advised to teach their children about saving if they want them to avoid falling into debt, a source says.

An analyst at Moneyfacts.co.uk, Michelle Slade, tells Easier Finance teenagers who do not go to university will still need financial guidance to avoid the debt trap.

She says many young people will be starting work for the first time and will be unused to managing their money.

Citing the fact children rarely receive advice in schools about dealing with finances, Ms Slade tells the website it is a parent's role to show children "how to budget and save".

She believes children should get into the habit of saving as soon as possible.

Ms. Slade says: "By teaching them the skills when they are young, hopefully we can stop another generation getting into as much debt and avoiding the financial mistakes that this generation has made."

Last year, the Personal Finance Education Group launched the What Money Means initiative to help primary school children develop some financial capability.

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