John Tiner the chief executive of the industry watchdog, the Financial Services Authority has told top bosses that they should be responsible for promoting financial awareness to consumers. Mr Tiner spoke to the heads of banks, building societies, insurance and investment companies and MP's, telling them that "financial capability is about providing consumers with the information they need to make financial decisions". He also went on to say that "Financial education should start in the classroom" and all of the factors show the sheer scale of the problem. It will take some considerable time to make some impact and improve financial capability.
Our View
Mr Tiner is right in what he says but the Government also has a lot to answer for. A lot of the complicated and ambiguous rules and regulations in place are their doing over many generations. If consumers are to buy into saving for their future they need to be confident with the people they deal with. Most people do not trust politicians, solicitors, accountants, estate agents and financial advisers. But, these are the people they need to trust if they are to be properly advised. We have a long way to go and the only way to increase consumer knowledge to an acceptable level is by educating them before they have the capacity to contract e.g. 18. If financial education is given in the classroom then everyone will have a greater understanding, ready for when it is needed in later life.