Wishful thinking: youngsters expect to own first home at 25
Many young people estimate their first salary to be around £22,600 and expect to own their first home at the age of 25.
prepaid cardsHowever, the reality is very different to the aspirations of today’s youth, which were unveiled by JP Morgan Asset Management.
Although it can be good to have plans for the future, these may need to be adjusted somewhat.
The average cost of a house for a first-time buyer is in the region of £169,000 – which means that a 25% deposit clocks in at £42,250.
Taking these figures, the average age of someone looking seriously into buying their own home in Britain is actually 30.
Although eight out of ten young people said they had savings, these were only estimated to reach £1,743 – a far cry from the amount required to buy a house.
A number of youngsters also underestimated the cost of university. Even though the annual costs reach around £17,300 including tuition and accommodation fees, young people estimated the costs to be much lower, between £10,000 and £15,000 a year.
The survey also investigated young peoples’ future aspirations and found that while girls look to emulate Florence Nightingale or Kate Moss by working in either health care (22% of those asked) or fashion (10%), boys aim to follow in the footsteps of Bill Gates by working in IT (16%).
Keith Evins, from JP Morgan, said: “As parents, it’s important we do as much as possible to encourage and support the dreams of our children. One crucial way to do this is to help our teens prepare for the future financially.”
This does not necessarily mean opening up the Bank of Mum and Dad – parents can also help their children to prepare financially for their future by encouraging them to start saving early or teaching them how to budget. The latter can be achieved easily by loading money onto a prepaid card, which prevents overspending and can teach kids to be more prudent when it comes to their money.