School kids to be taught 'to avoid credit card debt'

A new scheme is set to give school children money management education to help them avoid future debt.

School children are set to be educated on ways to manage money correctly, which could help them avoid massive credit card bills in the future.

In an interview with the Herald Sun, prime minister Julia Gillard discussed plans to introduce a $10 million scheme to help youngsters avoid large debt.

She is keen to ensure youths adopt "old fashioned" savings skills and learn how to operate a budget when they are older - and students will be taught how to compare store and credit cards.

One of the ways people can accrue a large debt is with mobile phone contracts and Ms Gillard noted that it is important for school children to comprehend what they have signed up for.

"Without fully understanding their plan, it's easy for young people to ring up bills totalling hundreds, even thousands of dollars," she added.

This news comes after Brontie Chambers, manager of products at credit union Community CPS Australia, urged youngsters to be careful when dealing with Aussie credit, News Limited Newspapers reported.

By Emma North