by Victoria Bischoff on Jan 31, 2012 at 16:48
When BBC Radio 1 presenter Matt Edmondson took to the streets of London to find out how much students know about basic personal finance, the results were more than a little worrying – yet comical.
Most were unable to answer simple questions on what the weekly minimum wage is, the average amount of debt university students face and how much you get a week from your basic state pension.
What’s more, according to the Chartered Insurance Institute (CII), which commissioned the research, despite a fifth of students claiming to have a store card, the majority – some 71% – do not know what an APR is.
Students were also unclear on other key terms such as ‘equity’, ‘credit’ and ‘debit’ – even though 95% said they have a debit card.
Almost half of teens, meanwhile, said they think debt is ‘something everyone goes through’, with just 2% considering it unusual.
The news comes as consumer groups step up pressure on the government to introduce basic personal finance lessons in schools.
According to the CII, just 16% of students said their lessons cover insurance, a fifth pensions and just a quarter mortgages.