People are often confused by the financial services they buy, argues John Prout. The industry needs a much more cohesive strategy to enhance everyone’s financial capability.
We all know how radically the economic landscape has changed. And while that has undoubtedly caused many to worry more about their finances, it has also encouraged a greater degree of individual responsibility.
This is particularly true of those with bigger savings. Many people are moving their money around – to minimise risk and ensure their finances are protected under the Government’s guarantee to cover deposits of up to £50,000 at any one bank or building society. They want that safeguard, plus a better return for their money. And they’re quite prepared to act to achieve it.
On the other hand there’s also a sizeable group who tend to let ‘financial awareness’ wash over them.What both groups have in common is that they are often confused by the financial products they buy.
Government, families, carers and schools all have a part to play here through education and awareness programmes to help children grow up with an understanding of money management. But I’d argue
that it’s the financial services organisations themselves who carry most responsibility for encouraging financial capability.
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