Funding adviser Hargreaves Lansdown despatched me a press launch this morning, which regardless of my finest efforts I can’t discover on the net. In it, they stated:

Youngsters are set to get an F for finance. As a result of whereas faculties have carried out every little thing potential to arrange them for his or her GCSEs and A-Ranges, there is a cheap likelihood they’re horribly unprepared for taking care of their cash.

By the age of 18, the overwhelming majority of us had large gaps in our data. Even if an terrible lot of individuals tackle pupil debt at this age, and much more will qualify for bank cards, three quarters of individuals do not perceive the principles round borrowing on the age of 18. At present’s 18-year-olds may also be rising right into a world the place inflation and rates of interest will play a key position, and but at 18, solely 37% perceive rates of interest and 30% have gotten to grips with inflation.

Except for on a regular basis funds, we additionally are inclined to know little or no about placing cash apart for the long run at 18. Whereas a wholesome 55% have grasped financial savings by this age, solely 32% know what a pension is, and our funding data is much more sparse – solely 28% know what a share is.

They then included this chart indicating  the state of consciousness 18-year-olds have on some key monetary points:

I believe we might all agree that on a few of these points the extent of understanding is especially worrying. That guidelines round borrowing and the impression of compounding aren’t understood is most particularly regarding.

If proof was wanted that training of the kind that I proposed within the report that I revealed on Sunday is required, then that is it.

I can be contacting Hargreaves Lansdown about this.