Young People Constantly Without Cash
Young people are struggling to manage their money, as over a quarter of those unemployed admit they are constantly out of money, a new survey showed.
Of the 1,250 16-24 year olds surveyed, 36 percent run out of money regularly, with 27 percent of unemployed young people claiming they have no cash to spend.
The Money Skills report commissioned by Barclays highlights the challenges many young people face when entering financial independence.
“It is essential that vulnerable young people are given the best start in life,” said Deanna Oppenheimer, Barclays UK Retail Banking chief executive.
“Having good money management skills, particularly when faced with a constrained budget, is vital to enhancing their life opportunities and preparing them for independent living.”
A significant number of this age group turn to friends for financial advice (25 percent), while 32 percent of unemployed young people admitted they did not know how they learnt how to manage their money.
Worryingly, one in three teenagers believe that buying on a credit card is not spending money, and one in three of 22-24 year olds regularly rely on the bank of mum and dad.
“Giving young people the financial understanding to manage their money will in turn help keep them out of unmanageable debt, which has caused so much pain throughout the UK recently,” added Dame Clare Tickell, Action for Children, chief executive.
Further statistics showed, even though 34 percent of young people run out of money on a regular basis, more than half describe themselves as a saver compared to a spender.
Almost 20 percent of 22-24 year olds stated they would put off paying a bill if they ran out of money, or would use an unauthorised overdraft, which could see them rack up high interest on the money they owe.
If you are worried your son or daughter is struggling to manage their money, a good aid to budgeting is a prepaid credit card, as it does not have an overdraft facility which means the user cannot overspend.