Simply the best
Can small business owners improve their finances by simple steps, such as keeping money for the business and the household in two separate drawers? A study cited in a new OECD report says for some small business owners the answer is “yes”. These “simple rules of thumb” were even more effective than standard accounting training for some participants in the study.
What is advice?
There still appears to be confusion over what constitutes “regulated advice”, a study into behavioural research by the FCA, cited in Money Marketing, found. It tells how it is important for consumers to understand what constitutes regulated advice, as it can provide safeguards for them. The review found consumers were better at picking that they had not received regulated advice when online than if they were involved in a meeting or during a phone call.
It might be better to teach financial literacy to teenagers through practical experience rather than instruction in the classroom, a new study by the OECD (as previously cited in "Simply the best") says. The study suggests that having a bank account or managing phone credits could provide motivation to learn about financial concepts. This in turn might help individuals to make more informed financial decisions, which ultimately can affect the economic health of wider society, the report suggests.