The current economic downturn has encouraged more young people to learn about the importance of money management, says national qualification provider NCFE. The number of students studying NCFE Level 1 Certificate in Personal Money Management has rocketed, with a 32 per cent increase in the last year and a 50 per cent rise since the qualification was launched in 2007. Recent surveys showed that student debt has now reached record levels with graduates now owing more than £21,500 by the time they leave university, while a report last week suggested that half of new students would be forced to rely on financial help from their parents.

David Grailey, Chief Executive at NCFE, said: "It is vital that young people learn the importance of money management and are able to manage their financial affairs before they finish their education and enter the world of work.

"The course has already been incredibly successful – teaching young people key life skills – and the popularity of courses such as this continues to grow.

"Economically it is a challenging time for everyone at the moment and it is critical that we equip young people with the necessary skills to support them through these difficult times."

The NCFE qualification has been developed to teach learners of all ages the value of managing finance in the short and long term. This includes an introduction to basic financial concepts, an understanding of how to avoid debt, the consequences of not repaying and the different types of monetary products available with advice on how and when they can be used. Learners can use their own circumstances, financial experiences, bank statements and financial records to complete the qualification.

The individuality of the NCFE qualification also enables learners to have the opportunity to identify a personal significant expenditure goal, and learn how this may be achieved through managing their personal finances.

David Grailey added: "This is a realistic qualification that is personal to the learners and helps to develop skills in financial literacy that young people can actually use.

"NCFE Level 1 Certificate in Personal Money Management is valuable as a means of teaching a crucial life skill. It also opens up a range of areas for further study and taster for a career within the lucrative financial sector."