9 November 2010

A Quarter Of Parents Say It'll Be Easier For Their Kids To Get Into Debt

• A third of parents believe their children will be less equipped to deal with their finances than they are

Despite the credit crunch and the focus on finances the nation's parents admit they are still worried about whether the next generation will be able to manage their own money, a new study* by M&S Money reveals today.

The research shows that a quarter of mums and dads around the country say despite the more cautious financial environment we're now in it will still be easier for their kids to get into debt than it was for them and a third think their children will be less able to manage their money than they are.

Almost one in five (19%) say their children will be ill equipped to understand and deal with their own finances as there is simply too much jargon to wade through and not enough practical guidance in schools. 

Despite this almost a third of parents believe that imparting their own experiences can help their children learn and improve their chances.  They are confident that by being more open, than their own parents were with them, and integrating finance into the school syllabus, their children are more likely to be able to cope with the challenges of their personal finances.  A fifth of today's parents said that their mothers or fathers had the most influence over how they manage their own personal finances.

M&S Money works with the DebtCred financial literacy project, which was established as a charity in 2003.  The primary aim of DebtCred is to prepare school pupils for university life or employment by educating about the sensible use of credit, personal financial management and the hazards of overindebtedness.  Employee volunteers from M&S Money deliver financial literacy presentations to high school students in the Cheshire region. 

Colin Kersley, Chief Executive of M&S Money, said: "Having been through one of the most complicated couple of years for family finances the importance of getting things right for the future has never been more important.  Too many of today's parents are not yet confident about the nation's efforts to improve financial awareness and ability for the next generation. 

"Providing practical guidance in schools as well as offering simple and transparent products is really important. The goal that our children will be more able to handle their own finances is worthwhile and one that industry, consumers and Government must work on together."

Ends

For further information please call the M&S Money press office:

Simon Coughlin on 020 7992 1574
simon.coughlin@mandsmoney.com

Liz Neild on 01244 686 068
liz.a.neild@mandsmoney.com

Or

Katherine Hobby / Kathryn Jones
katherineh@lansons.com / kathrynj@lansons.com
Tel: 0207 490 8828

Notes to Editors:

* Opinium Research carried out an online poll of 2001 British adults from 25th to 30th August 2010.  Results have been weighted to nationally representative criteria.

M&S Money and DebtCred:

DebtCred is the High Sheriffs' financial literacy project, which was established as a charity in 2003.  The primary aim of DebtCred is to prepare schools students for university life or employment by educating about the sensible use of credit, personal financial management and the hazards of overindebtedness.  These important messages are delivered through a range of comprehensive and flexible classroom teaching resources.

DebtCred in Cheshire & District is a unique partnership of The High Sheriff of Cheshire, DebtCred, Marks & Spencer Money, University College of Chester, Bank of America and Cheshire Building Society.  This partnership, which was established in 2004, engages volunteers from each organization in the delivery of financial literacy presentations to high school students in the region.  These presentations introduce the concept of financial literacy to the students, and the volunteer educators bring these to life with real-life personal experiences.

By the end of the academic year in 2012 the DebtCred in Cheshire & District partnership aim to have delivered financial literacy education to over 45,000 high school students.

HSBC Group – What Money Means:

What Money Means is a groundbreaking, five year, £3.4 million project designed to create a step change in the way personal finance education is taught in primary schools. Developed by pfeg and supported by HSBC, the project was established to address the need to build capacity amongst teachers to provide high quality personal finance education. It is the only national, non-governmental initiative of its kind for primary schools in this country, and its scale is ambitious.

Over the term of the programme, the materials will be available to more than 17,500 schools, and 36 local authorities and their schools will benefit from direct support from pfeg and their consultants. Up to 10,000 HSBC volunteers will be available as part of the support that schools will receive. But aside from its scale, What Money Means is also unique in its approach to teaching financial capability. Its emphasis is local – working with teachers, schools and local authorities to develop planned and coherent programmes of personal finance education that can stretch beyond the classroom to involve families and draw upon resources in the local community.

A history of financial services at M&S

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc, making 2010 the company's 25th anniversary.

The company is a top-ten credit card provider and the second-largest travel money retailer in the UK.  M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world's local bank'. M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer. 

1984:

M&S trials the Chargecard in 17 stores in Scotland.

1985:

Announcement of the formation of St Michael Financial Services and the introduction of M&S Chargecard. 270,000 applications in first three weeks.

M&S Chargecard goes live in stores.

1986:

Application for planning permission to develop 120,000 sq ft headquarters outside Chester on a 20 acres site to be known as Kings Meadow.

Millionth Chargecard account opened, making it the third largest card in the country.

1988:

Company changes name to Marks & Spencer Financial Services (MSFS). Offers the first M&S unit trust, Investment Portfolio.

1989:

Personal loans available to all customers.

1995:

Marks & Spencer Life Assurance Ltd launched, offering pensions and term assurance.

1999:

M&S ISA launched.

2000:

M&S Home Insurance and car buying plan launched.

2003:

MSFS rebrands to M&S Money.

&More Credit Card launched – the largest ever card launch in Europe.

2004:

M&S Money is bought by HSBC in a joint venture with Marks and Spencer plc. Mini Cash ISA launched, and M&S Money starts managing in-store bureaux de change.

2007:

M&S Ethical Fund and Fixed Rate Savings launched.

2008:

M&S Travel Money campaign featuring Myleene Klass.

M&S independent traveller cover launched and 37 multi-currency ATMs installed in stores.

2009:

M&S Premium Club launched.

First M&S regular savings account – Everyday Savings – launched.

2010:

M&S Flexi Cash ISA launched. Now 122 bureaux de change in M&S stores.