Call for mandatory bank accounts for 16 year olds
According to the experts, Britain’s youth are a financially illiterate accident waiting to happen. After all, 71 per cent of students aged 16-18 don’t even have a clue what ‘APR’ is, according to figures from the according to research from Chartered Insurance Institute. In order to save the next generation from a reality of being collectively clueless, the CIS has proposed that bank accounts should be handed out to all 16 year olds when they receive their National Insurance card. Simon Culhane, Chief Executive of the Chartered Institute for Securities & Investment (CISI) says that the measure will make personal finance matters “practical, personal and highly relevant." Culhane was prompted into making the suggestion by a House of Commons motion tabled last year which suggested financial education being made compulsory for every school’s curriculum – “an overdue initiative,” according to Culhane. Rather than be a hassle for the financial industry, compulsory accounts for 16 year olds may well be a boon for banks, allowing them to obtain customers at a very early age and potentially keeping them for a long time – research we conducted last year revealed that 22 per cent of British people may have never switched their bank accounts.