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New Report Reveals Gap Between Teens Financial Expectations and Reality

A new report which surveyed over 12,000 teens reveals that young people have an optimistic view of their financial future which may not be grounded in reality.
Finance - 9 May 2011   Download IconContent available for download:  
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  News Hooks:

A new report surveying over 12,000 teens, reveals that young people have an increasingly optimistic view of their financial future, which may not be grounded in reality. Today's teens expect to earn an average of £61,700 by the age of 35, despite the reality being an average of just £24,333 in their thirties. Over half also anticipate being a home owner by the age of 25, yet in the last five years, less than a fifth of first time buyers were under this age.

The figures reveal that fewer teens are now earning their own money, with more worrying about their finances and anticipating debt in the future. However the number of teens not monitoring their own money halved from 20% in 2007 to 10% in 2010.

Despite teen optimism possibly being misplaced, financial literacy has improved among teens, with 65% claiming they are more money savvy now than 12 months ago. The results show that the majority (82%) of teens say they have learnt about money at school or home in the last year, revealing the impact of school programmes and greater openness in discussing finances at home.

. Introduction:

Today's new teen report reveals a comparative snapshot into the financial literacy of teens during the recession, verses their opinions in today's economic climate for the very first time. The findings suggest that today's teens’ optimistic views of their financial future may not be grounded in reality. The results show that most teens expect to be earning in excess of £60,000 by their mid thirties, when the reality is likely to be more like £24,000. Fewer teens are also now earning their own money and more are worrying about their finances and anticipating debt in the future, however there is some light at the end of the tunnel, with financial literacy and openness improving.

. Suggested Questions:

What does the research reveal about teens' money expectations in our area?

Do young people have an expectation gap between what they think they'll have and the reality?

What else does the research show?

What are financial education programmes and why are they necessary in schools?

Where can we find out more information?