Financial worries and debt place enormous strain on family life.

19 December 2006, 23:59 GMT

It has also been widely reported that a large contributor to financial difficulties is a lack of knowledge and understanding of even the basics.

A report from the Social Policy Justice Group, headed by Iain Duncan Smith, spelled out the problem.

"Debt and financial worries are a common cause of relationship tension," it said.

"Relate have found that money rates as the top cause of arguments among couples.

"This tension can lead to relationship and family breakdown," the report added.

Surveys show that 79% of people do not know what an APR is, 25% have no idea how much they spend in a week and 26% have no idea of their monthly cash flow.

Furthermore, some 15% of 18-24 year-olds think an Isa is an iPod accessory, while 19% of adults hope to improve their standard of living in retirement by winning the lottery.

What can be done about it?

School lessons teaching young people about how to manage their money is one of those issues that everyone agrees ought to happen but doesn't, or at least, not yet.

It is often claimed that there just isn't enough space in the curriculum, but surely that is a matter of priority.

Is teaching people how to manage their own finances important enough to take its place alongside mathematics and history?

The dire state of personal indebtedness in the UK would argue very definitely yes!

The UK's consumer debt mountain now breaches the £1.3 trillion mark and is growing at the rate of £1m every four minutes.

This figure translates to an average household debt in the UK of an astonishing £9,000 (excluding mortgages).

Source: http://news.bbc.co.uk/2/hi/business/6193141.stm