The Conservative party has outlined some proposals for tackling Britains growing financial timebomb. One of the proposals is for educating our children about financial matters. This seems so obvious that it is worrying that this could be seen as an important new strategy. There is something seriously wrong with an education system that is failing to prepare children to live in a society that is so dependent on financial dealings.

So many people get into financial difficulties not because they don’t care but because they don’t understand. I don’t care how many “A” grades a school produces. If it fails to prepare it’s children for the real world then it has failed. If the government of the day concentrates on scores, percentages and league tables rather than the quality of preparedness for children going out into the real world then it’s failing not just those students but the country as a whole.

It’s in nobody’s interests that the country borrows itself into such a deep hole that we can never get out. Better understanding of financial products benefits and, most importantly, disadvantages must be a priority. I fear we are bringing up a generation of children who think, not that money grows on trees, but that it actually mysteriously and magically appears in a plastic credit card.

I’m pleased to hear the Conservative Party talking about this subject and I hope it leads to a greater debate and action from the government to a seriously neglected timebomb sitting right under our noses.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

The BBC website reports that First Direct has said they will be introducing monthly fees for running a current account.

First Direct will very likely be the first of many and it will be a shock to a whole generation of bank users who thought banking would always be a free service. The other banks will, no doubt, be licking their lips in anticipation of the enormous extra profits they will be able to make if they follow this example.

It’s thought that First Direct may be testing the water to see how customers react. Not that it will make that much difference since banks always seem to put profits first and they will, no doubt, see this as an opportunity. For all the choice in the high street banks will see this as a way to squeeze their customers. If they all decide to do the same then where else can a customer go?

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

It may come as a suprise to a lot of people but the banks and credit card providers are starting to talk about reintroducing annual fees on credit cards.
This follows on from the OFT insisting they charge fair penalty fees for people who go over their limits or fail to make their monthly payments.
Rather than absorbing the cost the banks are greedily looking arouind to find other ways to help add to their overflowing coffers.
Several have already increased interest rates to help them cover the cost of their home improvements and new cars, houses, Yachts and expensive jewellery.
Wives have to be kept happy after all. No matter that the poor working bloke suffers.
So, yet more reasons to take control of your financial life. Reduce your credit card debt and deny these wealthy people their luxurious lifestyle.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)