Kids unaware of the cost of everyday goods
Children are lacking awareness of the cost of basic everyday goods, according to research from the Halifax.
When it comes to grub, children are unaware of the cost of staple foods. Estimating a pint of milk at 149% more than cost, children think you would pay £1.12 for a pint of the white stuff, compared to 45pence in reality. In the regions, this figure rose to £2.00 in Wales with every region citing an average of at least £1.00
Surprisingly, this was also the case when it comes to the price of a packet of sweets, with children overestimating this at £1.10 compared to the 45pence actual cost. One in ten also admitted to not knowing the price of a packet of sweets perhaps suggesting they are leaning towards healthier options.
However, the average amount suggested for a loaf of bread was much more on the money at £1.07, when compared to the actual price of £1.27. Children in the East Midlands were virtually spot on with their estimate of £1.26.
Communications misjudged
For many, the art of letter writing has been superseded by text and email, so it is unsurprising that children overestimated the price of a stamp. The average amount suggested was £1.16 compared to the price of 41pence, although almost a third (29%) did admit they did not know the cost of a stamp. This figure rose to an estimated cost of £1.92 in Wales whilst over a third (36%) in the West Midlands admitted to not knowing.
In contrast, the cost of a TV license was underestimated at just £10.48. This compares to an annual cost of £145.50. Almost half of children (48%) admitted they did not know the cost of the license with this figure rising to 57% in London.
Perhaps the most unexpected figure, is the over estimation of the cost of iTunes downloads with the guess of £1.84 almost double the actual cost of 99pence. This figure rose to £2.40 in the North East and £2.30 in East Anglia.
Willing to learn
Although ideas about the cost of goods was some way from reality, children did express a willingness to learn with more than three quarters (77%) wanting to learn more about saving. This rose to 88% in Wales but fell to just 69% in the South West.
It also seems that children are looking to personal role models to teach them about savings with almost two fifths (57%) stating learning from their parents at home as the preferred choice, with a further fifth (20%) looking for guidance from teachers. Just one in ten (8%) wanted to learn over the internet with one in twenty (5%) opting for the TV.
Flavia Palacios, head of savings products at Halifax, said: "That children want to learn about savings is a very positive sign. This is especially encouraging in the light of the government's announcement to introduce Junior ISAs as this provides an ideal opportunity for parents to start talking to their children about saving. Making saving a shared activity and raising children's awareness of the cost of products is an ideal way of promoting greater budgeting skills in later life."