November 16, 2009

Consumers will get lessons in financial awareness paid for by banks in plans expected in the Queen's Speech this week.A new financial education agency will offer consumers personal finance advice including how to calculate compound interest rates and understand mortgage deals, reports the Telegraph.A levy imposed on the banking industry will fund the agency, part of the Financial Services Bill which will also will try to tighten bankers' bonuses.

The FSA is currently in charge of financial education but the job will now be done by a new independent Consumer Education Agency.The fee banks already pay to the FSA to fund its work is now likely to increase for the new education body for adults.Financial education for children will remain the responsibility of schools.A survey by the Learning and Skills Council last month suggests nearly nine in 10 consumers fail to understand basic financial calculations.