PPI Claim News - 1/8/2012
Naivety 'can lead to loan charges'
People could be vulnerable to incurring loan charges because of a lack of financial knowledge.
During a BBC Moneybox podcast, MyBnk education officer Hannah Jones pointed out when she started out in life, she incurred bank charges by taking out overdrafts without realising these would have to be paid back.
Furthermore, she used store cards but missed payments on the loan charges without realising that this would impact her in the future.
"That was just from naivety" and a lack of financial education, she declared.
The specialist remarked that budgeting is a useful talent, noting while most youngsters know what a budget is, they generally have never made one.
Rather than going without goods they want, budgets show people that "it's about looking for alternatives and cheaper options", she argued.
Schoolchildren ought to be taught financial education in the classroom, occupational psychologist Kim Stephenson recently stated, arguing this could make them better prepared for the future.
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance
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