Personal finance should be taught at schools in order to promote responsible money use, it has been claimed.
According to the ifs School of Finance, the area should be treated in the same way as subjects such as history, geography and french.
This would ensure that young people in Britain become as well versed in savings and loans as they are in algebra and Pythagoras' Theorem.
Indeed, government statistics show that 26,956 people became insolvent in the second quarter of 2007 - an increase of 4.2 per cent on last year.
"Equipped with such skills the number of people who find themselves facing unmanageable debt problems will reduce considerably," said Rod McKee, head of financial capability at the ifs School of Finance.
One area where personal finance teachers may look to educate people in is the interest rate.
The Bank of England's Monetary Policy Committee held the base rate level of interest at 5.75 per cent on Thursday August 2nd 2007.
Find out more about banking
© Adfero Ltd