'Optimistic' young people lack financial knowledge
Tom Lloyd
Monday, March 10, 2008
A survey of young people's views about money has revealed a need for more financial education, according to the researchers.
The NatWest MoneySense Panel found young people were overly optimistic about their future earnings, debt, and lifestyle.
On average the 8,500 11- to 19-year-olds interviewed expected to be earning around £31,000 by the age of 25. But the national average wage for 22- to 29-year-olds is currently less than £18,000.
The survey also found young people were optimistic about student debt, and the age at which they would be able to buy a house, and 76 per cent were unable to identify the cheapest loan when presented with four options.
The NatWest panel is a five-year research project tracking a group of British young people, and these are the first findings to be released.
Stephen Moir, head of community investment at the bank, said: "A hopeful generation of young people is not necessarily a bad thing.
"However a practical and realistic approach is crucial to equipping the next generation with the skills and knowledge they need to face the financial challenges ahead of them."
