Credit Cards definitive guide.

New research has shown that the younger generation do not typically consider credit cards to be associated with real spending. Barclays joined forces with three different children’s charities to carry out the research. The National Skills Academy for Financial Services, Action for Children and the National Youth Agency were the three charities who helped with the research. It showed the true attitude of today’s youth when it comes to credit cards and spending.

All participants were aged 16-24 and one in four of them were found to be unemployed. Around 13% of them also claimed that they constantly run out of money. The Daily Mail reported the research and it also claims that 34% of those surveyed considered themselves to be better savers than spenders.

Another shocking statistic regarding credit cards for bad credit was that a third of participants aged 20-24 still relied upon their parents for money. The money that is saved is generally saved to spend on clothes and gadgets. A staggering 74% of those questioned admitted they were saving towards new clothes and new gadgets.

It seems that more education is needed in schools regarding money management and saving. Only 3% of people stated that they received financial advice and information from school. Around 90% of people also claimed that they rely upon family and friends for help with financial matters.

Now Barclays and the three charities are joining forces to offer advice and help with finances to young people. Their new scheme is mainly set to help those who are unemployed and who are currently in training or education. A spokesperson from Barclays, Deanna Oppenheimer, states:

“It is essential that vulnerable young people are given the best start in life. Having good money management skills, particularly when faced with a constrained budget, is vital to enhancing their life opportunities and preparing them for independent living.”

One in three teenagers does not believe that using a credit card counts as real spending. When talking about the scheme, Deanna went on to say:

“Today we have announced three partnerships with leading youth charities. It is essential that vulnerable young people are given the best start in life.”

When questioned about what they would do if they ran out of money, 20% of those surveyed stated that they would simply not pay a bill or overdraft. This clearly shows that there are many teenagers at risk of getting into debt. The attitude that you can just leave bills to mount up and ignore overdraft facilities can get consumers into a lot of financial trouble.

Martin Lewis, a money saving expert, also wants schools to offer more financial advice and education. In late 2010, he took part in “Money Week”, a scheme set up by Newport University. Students could have checkups with money doctors and Martin Lewis recorded a special video package to help the students to better understand money management. It is these types of schemes that schools and universities need to start putting into place. It could save many students from getting into unnecessary debt.