London Teenagers Are Emerging From Recession With More Money Sense

Independent research shows a breakthrough in British teenager’s money management skills as money management lessons in secondary schools pay off

30th MARCH 2010: Teenagers in London are emerging from the recession with more money sense, according to findings released today.

The findings from NatWest’s 2010 MoneySense Research Panel, an annual poll which surveys over 10,000 12-19 year olds across the UK to assess their financial awareness and aspirations, reveal that the recession has had a profound – and encouraging – impact on the attitudes, beliefs and behaviours of British teenagers around money.  It shows that, compared to 12 months ago, they are significantly more considered now in how they plan, budget, spend and save – with as many as 62 per cent of teenagers in London reporting that they thought their money management skills had improved.

Key findings in London

In London, where a total of 1,353 12-19 year olds were surveyed, the findings show:

• The region’s teenagers receive an average of £34.67 each month, just less than the national average of £36.79;
  
• They have the highest salary expectations across the country and expect to earn £15,599 when they first leave education, £48,850 by the time they are 25 and more than £63,000 by the time they are 35;
  
• London teenagers are the most likely in the country to save most or all of their money (34 per cent);
  
• Young people in London are the least likely to earn money from a part time job (13 per cent, compared to the highest reported in the South West of 31 per cent and the UK average of 21 per cent).

Commenting on the findings, Maxine Norris, Manager of NatWest’s MoneySense programme in London, which delivers financial education to 60 per cent of Britain’s teenagers, in partnership with teachers, at 304 schools across the London, North and East, said:

“The results from this year’s Panel demonstrate that young people recognise the importance of money management and the need to make prudent financial choices.  Having surveyed close to 30,000 young people over the last three years, and provided financial education in schools throughout the region, we are certainly encouraged by the news that teenagers in London now recognise the need for money management and the importance of making prudent financial choices.”

The recession has exposed many young people to “adult” money issues; feeling the household budget tighten and increased awareness of unemployment and parents’ money worries. 

This has not only influenced their thinking, it has had direct impact too: teens in London spend around 15 per cent less than they spent in 2008 on going out and socialising with friends.

“These results are proof that financial education in schools does make a difference.  Money management lessons help students become ‘financially fit’, instilling good budgeting practices and helping to prepare the next generation for a brighter financial future,” Norris continued.

Sensible today, daydreaming tomorrow – unrealistic aspirations

There is still work to be done to ensure that the good habits teenagers form now continue into adulthood.  Programmes like MoneySense, which is taught by NatWest staff in partnership with teachers in 60 per cent of schools across the country including 304 schools throughout London, North and East, have a proven track record of success.  This, coupled with the advice given by parents and guardians, will help lay the foundations for a financially stable future.