A Government survey has found that young people are still baffled by their money, with many unaware of the most basic aspects of finance.

A poll undertaken by the Department for Education and Skills (DFES) found that 40% of 16-21 year olds did not know what APR stood for and that 25% thought store cards better value than credit cards – even though they are generally a lot more expensive.

All aspects of finance – from saving and investment to insurance – were a mystery to many of the young people polled. Bill Rammell, minister for higher education said: “It would appear that in many families money remains the last taboo subject.”

He was speaking to help launch the Talking Money initiative, which aims to confront the issues highlighted by the poll, including the discovery that 90% of parents said they would welcome advice on student finances.

He said: “Talking Money is designed to raise awareness of the fact that financial help is available to cover the cost of higher education in the form of loans, grants and bursaries.

“We are encouraging parents and their children to sit down and talk about money together and to get them to compare savings accounts and other financial products so they get the best value from them.”