Periscope
'Generation of debt' lacks financial training in families, schools
by Connie Lau
Young people receive little training on financial planning in families and schools, leaving them unable to handle their money problems on their own, experts say. The situation could be worsened, as the youth are already shouldering debts like borrowings from the government for studies and credit cards bills.
Recent surveys have found that parents also do not understand clearly how to manage their own finances and are not willing to discuss family income matters with their children.
In school, personal financial management is excluded from the current curriculum, while at university, related subjects and studies are optional for most students.
Youth experts say there should be more help and training for young people in families and schools on financial knowledge and skills.
Howard Cheng Chi-ho, a professor who researches on youth issues, referred to a survey conducted by his research centre last July, saying that about 60 per cent of parents and young people interviewed considered the education on financial planning provided by primary and secondary schools not enough.
He also said that most parent respondents found their own financial knowledge was inadequate.
What parents could teach their children were just basic concepts on savings and consumption, but not knowledge on investment, loan and insurance, Professor Cheng said.
¡§The majority of parents do not have enough financial knowledge. Therefore, their children cannot gain much from home,¡¨ said Professor Cheng, director of the Centre for Social Policy Studies at Hong Kong Polytechnic University.
The scholar described the young as ¡§a generation of debt¡¨.
¡§Young people have applied for the (government) grants and loans already when they are still in university. They have used credit cards to pay their bills. In other words, young people have to bear many debts before they start working,¡¨ he said.
And today¡¦s young people do not have clear goals in life as their parents did when they were young. The new generation tends to do part-time jobs, go for a long trip after graduation or study further. ¡§As a result, they do not have the chance to save and manage their money, as they have not earned a stable income yet,¡¨ Professor Cheng said.
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Howard Cheng Chi-ho describes the young as ¡§a generation of debt¡¨.
