Teens’ dream of a wealthy future
British teens have an increasingly optimistic view of their financial future, which is not firmly grounded in reality, according to a new survey from RBS.
The MoneySense Panel Research Findings for 2010, based on responses from 12,000 British young people, indicate that:
By the age of 35, today’s teens expect to earn an average of £61,700, compared to the national average of around £24,333 for people in their thirties.
53 per cent of young people expect to be able to buy their first home by the age of 25, but in the last five years less than 20 per cent of first-time buyers were under 25.
Fewer teens are earning their own money, whilst more worry about their finances and anticipate debt in the future.
Now in the fourth year of a five year study, the findings from previous surveys (2007-2010) of more than 40,000 students have revealed some encouraging news. The results indicate a change in attitudes, behaviours and beliefs about money among British teenagers, suggesting that financial literacy is improving.
65 per cent of teens surveyed say they are more money savvy than they were 12 months ago.
The number of teens not monitoring their money halved from 20 per cent in 2007 to 10 per cent in 2010.
Over 82 per cent of the young people asked said they learnt about money at home or school in the last year, and two thirds of them talked to their parents about household finances.
Andrew Cave, who oversees RBS Community Programmes explains: “This year’s results show British teens are taking a real interest in their money, but it’s clear there’s a growing gap between young people’s expectations and reality, that’s why its so important that we equip them with the knowledge and skills to make considered financial decisions for their future.RBS has been a solid supporter of financial education in schools for the last 17 years, investing time and resources into teaching younger generations how to manage their money.”
Tony Hobman, CEO of the Money Advice Service: “This year’s MoneySense findings will help to improve the quality of advice provided to young people. By helping them establish good money habits now, we can help more achieve their aspirations, whether that's buying a first car, budgeting for a place at university, or being able to afford a mortgage.”
Adam, 17 from London explained the benefit of learning about money in schools: “It can help you in the future, when we’re at university we’re going to have to start budgeting a lot more than we are now. The more we learn about it now, the more it will help in the future.”