Youth money ‘reality gap’ widening

14/05/11
News

Money expectations of young people are veering away from the reality of adult finances.

Young people expect to buy a home by 25.

The gap between young people’s ‘expectations and reality’ of money is growing, according to a new study.

Over 1,000 Scottish people between the ages of 12 and 19 were surveyed on their financial views by the Royal Bank of Scotland – more than half said they expect to be able to buy a home by the age of 25 despite the problems that many current first-time buyers are facing in the property market.

The study also found that young people believe that they will earn an average of £15,756 when they first leave education, which will rise to an average £33,769 by the time they reach 25.  At 35 they expect to be earning an average salary of £54,355.

Almost a quarter of participants envisaged getting into debt in the future with a further fifth anxious about their finances.

Just under 20% of respondents said they had a part-time job and 60% said they receive pocket money.

The study also highlighted that the average Scottish young person spends about £40 a month on clothes and shoes.

Jennifer Somerville, RBS’s regional MoneySense manager for Scotland, said: “This year’s results show that local teens are taking a real interest in their money, but it is clear there’s a growing gap between young people’s expectations and reality, that’s why it’s so important that we equip them with the knowledge and skills to make considered financial decisions for their future”.

Investment Sense
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.