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Issue Description
The credit crunch has highlighted the need for all of us to be more financially aware. How does our economy work and why are national debt levels rising? What do young people need to know about spending and saving, opening bank accounts, planning for the future and budgeting? This book looks at the UK economy and explores how to manage personal finances.
The information comes from a variety of sources, including government reports and statistics, newspapers and magazine articles, surveys and polls, academic research and literature from charities and lobby groups; articles have been tailored to an 11 to 14 age group. Additionally, at the end of each chapter are two pages of activities relating to the articles and issues raised in that chapter.
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Key Facts
- The economy is made up of consumers, businesses and government. Consumer spending, investment and government spending make up a large part of total demand in the economy. (page 1)
- The government pays for services such as hospitals and schools and contributes to total demand in the economy. It raises the money it needs through taxation. (page 2)
- Experts say that the current credit crunch happened because banks and building societies were lending money to too many people who were at high risk of not being able to pay back these loans. In particular this refers to mortgages. ( page 5)
- In 1987, the average young person received £1.18 in pocket money per week and this contrasts with £6.84 in 2009, an increase of 500 per cent. (page 13)
- The number of young people keeping track of their money increased by 7% from 79% last year to an impressive 86% this year. A majority (62%) expressed that they would not spend their money on things if they think they might need the money for something else. This suggests a level of planning when it comes to spending. (page 20)
- Although there is no minimum legal age for someone to have a bank account, most banks offer basic accounts to young people aged 11 and over. These provide a cash card, which you can use at a bank machine to withdraw cash, and possibly a debit card that will only work if there’s enough money in your account. (page 22)
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Table of Contents
Chapter One: The Economy
Our economy, Tax matters, The credit crunch, The global financial crisis, Deepening debt crisis, Cost of living, Activities.
Chapter Two: Managing Your Money
Teen and tweeneconomics, Budget for a month, What age can I work, Forms of payment, Brighter financial futures, 'The forever generation', Banks and building societies, Activities.