Parents and children clash regarding future income prospects
Although children have extremely high expectations regarding what they will earn in the future, six in ten parents think that their children will not meet their financial predictions.
A major survey conducted by the Royal Bank of Scotland (RBS) showed that more than half of the adults surveyed do not think their children will earn as much as they did from their future employment.
Just 5% of parents are optimistic regarding their offspring’s potential future earnings.
For the MoneySense Research Panel, more than 50,000 children were surveyed by RBS in the past five years.
The research highlighted the fact that children have a more positive attitude to their future finances compared to their parents.
The children involved in the major survey said by the time they are 35 years old they are likely to be earning £56,000 a year, which is more than double the average annual wage.
Future earnings were over estimated by the greatest proportion with English teens, as the average English teen predicts by their mid-30s they will be earning around £57,000.
In contrast, teens in Northern Ireland expect to be earning £39,000 by the same age.
According to most adults, teenagers are likely to be earning an average of £25,000 by the time they are 35.
With the actual average income for that age being £24,000, young people may be setting themselves up for a big fall.
The majority of children expressed a desire to gain financial knowledge from their parents, as seven in ten said they would like to be taught about finances by their parents.
RBS asked adults about discussing finances with their children, but just one third said they felt able to talk properly about money with their children.
With an unstable economy, rising costs for daily essentials and the difficulty of getting on to the property ladder, you may wish to start saving for your children’s future in a rewarding bank account.