Teenagers hold Unrealistic Views on Future Finances
British teens expect to earn an optimistic £61,700 by the age of 35 a new study shows, highlighting the importance of financial education.
The MoneySense Panel Research findings for 2010 indicate teenagers have an unrealistic view of their financial future. The national average earnings for people in their thirties stand at around £24,333.
The study also found today’s youth expect to be able to buy their first home by the age of 25 years old, as 53 percent of those surveyed thought. However, the reality is only 20 percent of first time buyers in the last five years have been under the age of 25 years old.
More teenagers were also shown to be worrying about their finances already though, anticipating debt in the future, and fewer kids are earning their own money to counteract this.
“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,” said Andrew Cave, who oversees RBS Community Programmes.
“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,” commented Tony Hobman, Money Advice Service CEO.
The five year study however has shown encouraging signs, with the results indicating a change in attitudes, behaviours and beliefs about money among British teenagers.
It found 65 percent of teenagers said they are more money savvy than they were a year ago, and less teens are failing to monitor their money.
Over 82 percent of the young people asked also said they had learnt about money at home or school in the last year, and two thirds of them talked to their parents about household finances.
Those students who stated university courses in 2009 will be in an average debt of £23,200 by the end of the course, or £24,700 if they started in October 2010 highlighting the importance of children having good money management skills.