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 now significantly more considered now in how they plan, budget, spend and save. As many as 67 per cent of young people surveyed thought their money management skills had improved from last year.
Commenting on the news, Sarah Neary, Head of NatWest MoneySense Panel, 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 60 per cent of British secondary schools, we are certainly encouraged by this news.”
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 today report receiving just over half the amount of money they received each month last year.
The findings show clear differences in behaviour between Britain’s boys and girls:
- Boys are much more likely to save than girls, with a third of boys (33%) compared to a quarter of girls (24%) saying they save most or all of their money;
- Boys are also more likely to be earning money in some way, either through part-time work or chores (30% for boys, compared to 27% for girls);
- Boys have seen less of a drop in their pocket money as a result of the recession than girls (15% for boys, compared to 18%for girls).
There are also significant differences between age groups, with:
- 11-13 year olds most likely to save all of their money;
- 14-16 year olds most likely to spend all their money;
- 18 year olds, those closest to higher education and the workforce, likely to save most of their money, indicating a sensible approach to money as they reach adulthood.
Breakthrough as research shows money management lessons pay off
For the first time since this five year research project began, there are now proven findings that show NatWest MoneySense lessons in schools around the country have directly and positively impacted on teenagers’ ability to translate their attitudes and beliefs into positive behaviours.
Young people receiving MoneySense lessons are:
- More likely to keep track of their money;
- Less worried about money in general because of their increased understanding;
- More likely to have saved most of their money;
- More likely to discuss money matters at home - money conversations are no longer taboo.
Neary continued:
“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.”
Programmes like MoneySense, which is taught by NatWest staff in 60 per cent of secondary schools across the country, coupled with the advice given by parents and guardians, will help lay the foundations for a financially stable future.
Continued support of the UK’s younger generations to build their holistic understanding, attitudes and behaviours towards money, will help them become financially capable consumers, and in turn will help make our communities more sustainable.
