A new poll has revealed that young people are struggling to understand money management and financial terms.

The results show that a quarter of 16 to 21-year-olds questioned believe store cards offer better value than credit cards and more than a third don't understand the term APR. Yet the poll also shows that one in three parents do not discuss debt and credit at home despite around 83 per cent admitting they worry that their children will run up debts.

The Talking Money poll found that some parents don't feel comfortable about broaching money matters with their children because they are put off by their child's attitudes to money (22 per cent said their child didn't think money matters were important), fear of looking like a nag' and their children finding money discussions boring'.

But the lack of communication works both ways, with a quarter of 16 to 21-year-olds admitting that they wouldn't tell their parents if they were overdrawn, while one in five wouldn't own up to holding a credit card.

The poll marks the launch of the Talking Money awareness drive from the Department for Education and Skills (DfES), designed to get parents and young people discussing finances and budgeting in preparation for going into higher education. With 92 per cent of parents saying they would welcome advice on managing money for students, Talking Money is a partnership between the DfES, TV money saving expert Martin Lewis and the National Association of Student Money Advisors' (NASMA). Together they have launched a guide for families and a downloadable webcast as well as help and assistance online.

Mr Lewis, creator of www.mon eysavingexpert.com the UK's biggest money site said: "Sadly in the UK, money is often a taboo subject, which adds to the huge problem of financial illiteracy in the UK. It's time parents and students started talking about cash, understanding how the system works and discussing how to live within a budget. Do that, and there is no one who should be put off entering higher education because of worries about student debt."

The Talking Money Guide has been created as a one stop shop on student money. The guide covers: u The Student Finance package - what's available u Real-life stories and letters u A back to basics' guide to money from Mr Lewis, including financial jargon busting and budgeting u Key deadlines for students looking for financial help.

Visit www.moneysavingexpert.

com/parentsguide to download a free PDF version of the guide.