Saving money news
Dish out some money advice
22 October, 2007
It’s not the lack of funds from the ‘bank of Mum and Dad’ that frustrates today’s teenagers but more the lack of decent advice from parents on how to manage money.
Parents are still dishing out the age-old adage, ‘money does not grow on trees’ which their offspring say does not help them master necessary financial skills.
Research from the new NatWest Adapt Account has found 59 per cent of young people do not intend to follow the financial advice of parents, citing it as unrealistic, old-fashioned or just too basic. And while money might not buy you happiness, expertise of it may well do with 11 per cent of 11-18 year olds worried about the future and their lack of financial understanding.
The customary sayings, ‘money doesn’t grow on trees’ and ‘save for a rainy day’ are still said by almost half of parents. Interestingly, 51 per cent of 14-16 year olds felt this was basic and left them frustrated, wishing someone would help them understand money more.
Mark Worthington, NatWest Head of Youth Banking, said: “The reality of today’s teenagers is that their financial circumstances are much more complicated than that of their parents at the same age. They have access to a far wider range of goods and services and are more social in their activities. Many teenagers are taking on the responsibility of part-time jobs and whilst they want to enjoy some of what they’ve earned they also want to know how to manage money properly.”
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More than half of young people in the UK believe being in tune with money management reflects responsibility and being in control of their lives. A quarter of savvy 15-16 year olds undertake part-time work as well as receiving pocket money and want to be able to easily track their money.
Worthington said: “NatWest has for many years run a financial education programme called MoneySense in schools throughout the UK. This initiative’s belief is that by the time someone leaves school they should be confident with money - not only to understand the importance of saving but that of budgeting, as preparation for independent living.
“Having access to more sophisticated banking such as current accounts, which provide monthly statements and chip and PIN cards, increases young people’s awareness of money matters. They can see where their money is going and learn to appreciate the value of things which is not as easy with a basic cash card for a savings account.”
Retrospectively, it seems young adults have experienced similar fiscal woes. Once youngsters had reached 18 and could access more sophisticated financial products they acknowledged they were short on financial acumen.
Of people aged 18-21, 43 per cent said they would feel more confident about money management if they’d had access to a current account earlier in life. One fifth (20 per cent) of this age group also admitted to being frightened or confused about more complex financial products because of their limited experience.
More than one in five 18-21 year olds wished they had known more at an earlier age with 28 per cent determined to encourage their own kids to learn about managing money sooner in life.
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