THE Financial Services Authority (FSA) has devised a national strategy to help increase the financial skills of the UK's 18 to 40-year-olds in a bid to reduce severe debt problems in the future.

To help introduce the National Strategy for Financial Capability, the FSA has developed a seven-point teaching programme including Learning Money Matters which will be introduced into classrooms to help schoolchildren learn the importance of well-managed finances.

The need for the strategy is highlighted by a survey conducted by the FSA about the financial capability of UK residents.

It found, even after lower incomes and limited experience are taken into account, people in the 18 to 40 age group are less financially capable than older groups but on the whole have more financial responsibilities, such as university loans.

John Tiner, chief executive of the FSA, said: "There is an urgent need to help the young.

"The ability to manage money grows with age and experience but rapidly changing economic and social trends mean today's 18 to 40-year-olds are faced with greater challenges than were faced by their parents.

"They have greater access to credit and are becoming consumers at an earlier age. On top of this, the costs of higher education and retirement are being increasingly borne by individuals rather than the state or employers.

"This combination of pressures means the cost of not having the necessary skills to make sound financial decisions is becoming increasingly significant."

For more information, visit the website fsa.gov.uk/finan cial_capability

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