London Assembly report calls for giving every teen bank account

LONDON, Jan. 8 (Xinhua) -- A call for every teen in London aged 16 to 18 to have a bank account was made Monday in a report by the London Assembly.

The assembly's Economy Committee report "Short changed: the financial health of Londoners", makes a number of recommendations to Mayor Sadiq Khan.

Their action follows a report showing 44 percent of people in Britain, who are in financial difficulty are between the ages of 18 and 34. The study also found 27 percent of 18 to 30 year olds in London say they are in debt all the time, with a third of all users of high-cost loans aged 18 to 34 year olds.

The report also revealed 40 percent of 18-24 year olds are less confident about managing their money, compared to 22 percent of the rest of the UK adult population.

The committee has urged mayor Khan to work with the financial services industry, schools and colleges to create a young person's banking charter, with the aim of ensuring all 16-18 year olds has a bank account.

Assembly member Caroline Russell, chair of the Economy Committee, said: "The cost of living has increased in the capital and many Londoners are cut off from accessing affordable financial services, such as loans and credit cards. They have to turn to high-cost credit, like payday lenders to make ends meet.

"It is absolutely crucial that young people are given the right support in terms of their finances, when they leave school. For many, it is the first time they will be responsible for their own money. Education and support are key, as actions at this critical stage can have real consequences, in terms of credit ratings and long-term financial health." Enditem