However, people are now becoming credit adverse again and therefore looking for new ways to shop that provide them with a sense of security and responsible spending.

A new product launched today supports good spending habits, particularly for young people. Young Enterprise East of England, part of the longest established business and education charity in the UK, today announced the launch of Y Cash.

The innovative new student based programme has been developed in partnership with M-Cube, a leading UK prepaid card business, to provide young people with a modern payment method that encourages good financial behaviour. It also offers schools an innovative way of raising funds while supporting the financial capability agenda, with the opportunity of school events and promotions to support the message.

The Y Cash programme will raise funds for participating schools through usage of a Y Cash Prepaid MasterCard® Card which is issued by Newcastle Building Society. Fifty per cent of the profit generated by the scheme will be shared equally between a school nominated by the cardholder and the Young Enterprise.

The Y Cash Card promotes good spending habits: only spend what you have and keep track of your finances. There are also many benefits including exclusive shopping discounts and cash back through specially selected partners. Special giveaways are also available through the online portal.

Y Cash is available to students up to the age of 25 or adults over the age of 18 that are residing in the UK, at a cost of £7.50. Consumers need only follow the simple online registration process to receive their personal login details and a personalised card; a UKash Voucher can also be used as an alternative purchase method.

Top up is easy using online or via the Post Office, mobile or standing order. Students can also take advantage of free purchase transactions.

Paul Beeson, Chief Executson, Chiefef Executive of Young Enterprise East of England said: "Our mission is to inspire and prepare young people to succeed in a global economy. We fully support the Financial Services Authority's efforts to improve the nation's financial capability. We agree that this needs to start with young people, for whom the FSA has a vision of "better informed, educated and confident citizens, able to take greater responsibility for their financial affairs."

Part of this is about understanding how to buy things. Cash is simple to use and understand, but increasingly other buying methods are taking over. Online trading in particular requires methods beyond just cash and we believe this should be introduced to young people in an appropriate way."

Paul Beeson continued: "We are therefore introducing our Y Cash Student Card for students (up to the age of 25) to give them experience of using a payment card to buy things and to plan and manage their finances. It will also provide an opportunity to practice good spending habits, especially only spending what you can afford. With online statements to review what you have spent, the latest technology to ensure security and access via mobile telephones, we believe this is an innovative and useful part of the financial capability agenda.

"To achieve our aims, Young Enterprise East of England has created a partnership which combines its understanding of the education with the commercial acumen of M-Cube, one of the UK's fastest growing prepaid businesses, and one which takes seriously its role and responsibilities in the wider community."

Mashallah H.M. Ali, Chief Executive, M-Cube said: "This unique programme will directly benefit schools, teachers, pupils and parents and reflects our continued commitment to forging successful partnerships in the private, public and charity sectors."

"Young Enterprise has inspired and equipped young people to succeed in business and commerce in the UK for over 45 years and plays a crucial role in the delivery of programmes which support the key elements of financial capability in schools."

"With this launch we are continuing to drive innovation in the prepaid sector by offering young people a passport to responsible financial freedom, allowing them to shop without spending more than they have or their parents can afford."

Young people aged 13 and above, as well as adults, will be eligible to hold a Y Cash Prepaid MasterCard® Card. The card is not a credit card or a debit card and measures have been implemented to prevent young people using the card to purchase goods or services intended for adults.

Other functions and benefits of the Y Cash Prepaid MasterCard Card include:

• Load funds on to the card directly from a bank account, on-line and using cash over the counter at any Post Office branch
• Cardholders can load funds securely from a mobile phone - ideal in emergencies
• Make purchases internationally (when on holiday or school trips) and via the internet wherever MasterCard is accepted
• Raise funds for local educational organisations and Young Enterprise
• UKash Voucher payment method available for non-cardholders
• Free purchase transactions for students
• Latest financial news and awareness - promote good spending habits in youths
• Enjoy the security of Chip & PIN technology to protect funds loaded on the card; making online shopping safer
• Earn cash back from online shopping portal transactions
• Access balance information and transfer funds via a mobile phone
• Cardholders benefit from exclusive offers from major brands