Money habits are formed by age seven, vacations without insurance and strong UAE economy

Money habits are formed by age seven, vacations without insurance and strong UAE economy
26 June 2013

Money habits are formed by age seven 

A UK government-backed Money Advice Service has warned parents “not to underestimate the effect of their own (good and) bad money habits on children.” The warning comes after a Cambridge University study suggested that most young children had grasped all the main aspects of how money works and formed core behaviours which they will take into adulthood and which will affect financial decisions they make during the rest of their lives.  Tracey Bleakley, chief executive of the Personal Finance Education Group, speaking via the Money Advice Service press release said: “This useful research underlines how crucial it is that financial education starts from a young age. Parents have a key role to play in reinforcing this by talking to their children about money and helping to pass on good financial habits.

Many people take vacations without travel insurance

Research by ABTA (the Association of British Travel Agents) shows that one in four people travel without appropriate insurance, while almost one in two holidaymakers aged 15 to 24 don’t bother taking insurance at all. Despite not necessarily having insurance, eight out of ten young people admit to taking part in adventurous activities on holiday. In terms of the likelihood of needing medical attention on holiday, ABTA found that one in five have visited a doctor or hospital abroad. Medical bills are also far higher than many holidaymakers expect. Respondents mistakenly believe it would cost USD 8,000 or less to treat a broken leg in the US despite the actual figure being more than eight times than that, costing around USD 60,000, according to the research.

UAE set for further strong growth according to Ministry of Finance

The latest International Monetary Fund’s (IMF) report on the UAE has predicted that the country will achieve 3.6% growth in its gross domestic product (GDP) this year, and is set to increase marginally to 3.8 per cent by 2015. Commenting on the concluding statement of the IMF report, HE Obaid Humaid Al Tayer, Minister of State for Financial Affairs at the UAE Ministry of Finance, said: “The final report of the IMF gave a clear picture of the UAE’s economy. In fact, the report highlighted a notable recovery from the financial crises that engulfed the world, where the (UAE) economy is actually witnessing strong growth which guarantees a solid business environment for investors that is supported by legislations and to aid it in achieving more growth.”  An important element of the report, despite the announcement of major building plans and mega projects, the IMF predicted that the UAE will continue consolidating its finances in 2013 through the rationalization of capital spending.

 

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Head of Behavioral Finance
cashy
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