Government statistics released today showed another increase in the number of individuals becoming bankrupt. 26,956 people became insolvent in the second quarter of 2007, a 4.2% increase on the same quarter last year.
Financial education charity the ifs School of Finance has responded by calling on policymakers to put Personal Finance on an equal footing with Geography, History & Modern Foreign languages in schools to ensure future generations have the skills to manage their money effectively and avoid unaffordable debt problems. This would mean adding Personal Finance to the core curriculum i.e. it would be compulsory for schools to offer such a subject but not compulsory for students to study it.
Rod McKee, Head of Financial Capability at the ifs School of Finance, said:
"The insolvency figures released today again highlight the need to ensure people have sufficient financial skills to make informed financial decisions. Equipped with such skills the number of people who find themselves facing unmanageable debt problems will reduce considerably.
"As the 200+ schools already offering a GCSE equivalent in Personal Finance have shown, students who take a standalone course in Personal Finance make positive changes to their financial behaviour and are able to manage their own finances effectively. We’d like to see every school offering their students the opportunity to gain these skills but achieving this requires Government action."
The ifs School of Finance is the only provider of GCSE, AS and A level equivalent qualifications in Personal Finance.
View the Insolvency Service figures in full.
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