Financial education `starts in the home`

In July, the government said that it would prioritise financial education in UK schools, a move which was praised by Alastair Mathews, the director of policy at the Personal Finance Education Group, as "a considerable step forward" towards lowering debt and raising consumer awareness.

However, parents could also play a part in helping their children`s education extend beyond the schoolyard by setting a good example regarding budgeting, spending and debt management.

Recent research from Mintel revealed that people in the UK were in the dark about the amount of unsecured debt they owed, with the true amount equalling, on average, almost twice what consumers believed.

By simply monitoring the amount of money spent on credit cards and other purchases each month, parents can demonstrate to their children the importance of sticking to a budget.

In addition, the older generation may show their offspring how to flex their consumer power and save money by switching to lower-interest cards, mortgages and loans.

Finally, in a financial climate in which getting into debt carries little stigma, parents should be able to be proactive if they run into financial problems.

Consulting a debt advice company could be the first step in showing children that they are in charge of clearing debt and regaining control of their finances.