Money  education is the way forward

Simplicity and education is the key to the general public making the most of their money and managing it effectively.

That was the message from the Citizens Advice Bureau and the government in two separate pieces of research and consultation.

Two thirds of people who had attended community-based money management sessions run by CAB volunteers felt more confident about handling their finances as a result.

Many planned to open savings accounts, set budgets and try to get better energy deals following the courses.

More than 850 CAB volunteers have become involved in delivering the MoneyActive programme, which is being run across England and Wales.

The sessions aim to equip people with the skills, knowledge and understanding to budget, borrow and save with confidence, and to avoid unmanageable debt.

The volunteers have reached groups of employees facing redundancy, young mothers, people with learning difficulties, children’s centre workers, tenant advisers and mental health workers.

John Rhodes, head of financial capability at CAB, said: “In the current economic climate, it’s more important than ever that we do all we can to help people gain the skills, knowledge and confidence they need to manage their money effectively.

“The MoneyActive programme is central to our national bureau network achieving that.

“Citizens Advice Bureaux already deal with well over two million debt problems a year and we see the devastating impact debt burdens have on people’s lives.”

Meanwhile the government has launched a consultation on ‘Simple Financial Products’.

Mark Hoban, financial secretary to the treasury, said the consultation set out proposals for financial products that will help promote personal responsibility, enable consumers to compare products and understand product features more clearly.

Proposals includes industry and consumer-led development of a new category of simple financial products and the first simple products to be developed should be deposit savings and life and income protection insurance products.

Mr Hoban said: “The government is committed to helping consumers take responsibility for their finances.

“In order to do this they need to be able to make sense of the huge range of financial products in the market.

“Simple financial products will help them to do that, by providing a safe choice and a common benchmark against which other products can be compared.”