Contents. RBS MoneySense Research Panel Report

Transcription

1 RBS MoneySense Research Panel Report 2011

2 Contents 1. Foreword The MoneySense programme The MoneySense Research Panel Executive summary Overview of the 2011 findings Conclusions Background and objectives Methodology Student Online survey Qualitative interviews Findings Current financial situation Attitudes towards their financial situation Financial behaviour Borrowing money and attitudes towards debt Learning about money Financial aspirations Northern Ireland Republic of Ireland MoneySense Research Panel: Trends in responses Current financial situation Attitudes towards their financial situation Financial behaviour Financial behaviours at home Borrowing money and attitudes towards debt Learning about money Financial aspirations Summary Test and control findings Background Sample profile Findings Test and control: Northern Ireland Qualitative impacts of the MoneySense programme Comparison between countries Sample Key differences National Summaries Scotland England Wales Northern Ireland Republic of Ireland Appendix: MoneySense Research Panel questionnaire RBS MoneySense Research Panel Report

3 1. Foreword This is the final year of the MoneySense Research Panel In RBS commissioned an independent body to conduct a five-year study into young people s understanding of, and attitudes and behaviours towards money management. The research helps RBS keep its MoneySense for Schools programme relevant for young people dealing with the challenges of money management in today s economy. We ve surveyed 50,000 young people between 2007 and Over 12,000 of them in the winter of Sir Philip Hampton, Group Chairman, RBS, said: It's more important now than ever before to give our young people the opportunity to learn about how to manage their money. We know from this research, that young people are more confident about dealing with the practical, day to day aspects of money if they've had RBS Group MoneySense lessons at school. And that in turn makes them feel more equipped to deal with key decisions in life. I believe RBS has an important role to play in the future of young people, and we are committed to supporting that vision through our MoneySense for Schools programme. I found this research report very interesting, I hope you do too RBS MoneySense Research Panel Report

4 1.1 The MoneySense programme MoneySense for Schools is an impartial financial education programme. The programme is designed to help schools deliver lessons in line with the curriculum, and ensure that young people are given the opportunity to develop their money management skills. RBS believes that before leaving school, every young person should: be confident about managing their money and dealing with financial organisations understand the importance of saving be able to calculate the cost of borrowing understand day-to-day money management and budgeting be prepared for independent living and the financial decisions they have to make. Employees of NatWest in England and Wales, and RBS in Scotland, support schools through training and delivering lessons in classrooms to help schools increase their capacity for teaching financial education. The high standard of the new online resources means that teachers also have the tools they need to deliver MoneySense lessons independently in schools. Teacher training days have been held across the country since These allow teachers to become familiar with the MoneySense resources, network with peers, hear from education and financial experts and gain the confidence they need to teach personal finance education. In total, over 1,300 teachers have been trained at these events. The MoneySense for Schools website can be accessed via or The MoneySense Research Panel The RBS Group has commissioned a five-year independent research study to assess the attitudes and behaviours of Britain s year-olds. This publication outlines findings from the fifth and final year of the research, with a sample of over 12,000 young people surveyed in the winter of It also provides insight into the trends seen across the data collected since The study has been completed by over 50,000 young people since 2007 and captures information about attitudes towards money and debt, current spending behaviour, future aspirations, and knowledge of the financial system. The findings of the 2011 MoneySense panel are explored across five key sections (sections 5 to 9). RBS MoneySense Research Panel Report

5 The report begins in section 5 by exploring the main findings for the 2011 data, first for Great Britain and then for Northern Ireland. Section 6 then outlines trends in responses from 2007 to 2011, highlighting any differences across this five-year period. The next section (7) explores responses among the RBS test group (those who have had two or more MoneySense lessons in the past two years), and the control group (those who have not had MoneySense lessons); first for Great Britain using data from 2009 to 2011, and then for Northern Ireland. Section 8 compares the data received from young people in England, Scotland, Wales and Northern Ireland. The final section of the report comprises summaries of the responses received in each of the nations surveyed in RBS MoneySense Research Panel Report

6 2. Executive summary The 2011 MoneySense Research Panel findings are based on a proportionately representative sample of: 11,718 young aged in schools and colleges across Great Britain 953 young people in Northern Ireland 380 young people in the Republic of Ireland. The main 2011 findings refer to data from Great Britain only (i.e. young people in England, Scotland and Wales). Data for Northern Ireland and the Republic of Ireland is explored separately. Data was weighted so that the profile was proportionately representative of each region and country in Great Britain, Northern Ireland and the Republic of Ireland by year group and socio-economic group. Key overall findings are outlined within this summary section, together with the key differences by age, gender and socio-economic group. Additional qualitative data was captured from year-olds who had received MoneySense lessons. 2.1 Overview of the 2011 findings Current financial situation Almost all young people (97%) had received money in the previous month. This was most commonly as pocket money or from an adult at home (82%), with girls more likely than boys to receive money in this way. Nearly half (45%) of all young people said they earned their own money; a quarter (25%) were paid for doing chores around the house, and a fifth (20%) said they had a part-time job. Older pupils were more likely to be earning their own money. Young people received an average of 83 per month, mostly from jobs ( 30) or as pocket money from an adult at home ( 29). Most of this ( 44) was received as cash, or as payments directly into their bank or building society account ( 31). Boys received more money than girls per month, and the amount received also increased steadily with age. Nearly three quarters of young people (74%) said they had a bank account, and this proportion was higher among older pupils, as well as those from socioeconomic groups AB. RBS MoneySense Research Panel Report

7 2.1.2 Attitudes towards their financial situation Young people indicated that they greatly value their financial independence, with an overwhelming majority (85%) agreeing that it is important for them to have their own money. However, not all young people appeared satisfied with their current financial situation. Around one quarter (27%) did not feel that they always had enough money, and just over a quarter (29%) of pupils said that money worried them. When asked why money worried them, young people s concerns were mainly in relation to future aspirations. Three fifths (60%) answered that they did not want to get into debt, and the same proportion said that they wanted to have a nice lifestyle. Just over half (52%) of young people said they did not think they would have enough money for the future, and exactly half worried that they may need to pay for university. When asked about their current financial situation, young people indicated that their families had been spending more money on essentials, such as food (34%) and utilities (40%), and either the same or less on activities, trips and holidays. However, nearly a third (32%) of young people said that although their families appeared to be tightening their belts with regard to luxuries, they were receiving more pocket money than they had in the previous year. Four in ten young people (40%) said they were receiving the same amount. A substantial proportion of young people also appeared optimistic about the amount of money that would be available for them to spend in a year s time. Nearly a third (31%) felt that they would have more money to spend, and the same proportion thought they would have the same amount to spend in a year s time Financial behaviour Budgeting Nine out of ten young people reported using one or more methods of keeping track of their money, with the most common methods being informal, such as keeping track in their heads (52%). Young people also appeared to be relatively sensible with their spending, with nearly seven in ten (69%) agreeing that they would not spend money on items if they thought they might need the money for something else. Saving Nearly nine out of ten (86%) young people agreed that it was important to save money, and nearly two thirds (62%) said they were saving more than they used to. Around three quarters (76%) had saved at least some of the money that they had received in the previous month, with nearly eight out of ten (78%) saying that their parents encouraged them to save. The most popular places for young people to save their money were at home (60%), or in a bank or building society (59%). RBS MoneySense Research Panel Report

8 Spending On average, young people estimated that they spent 110 per month, with most expenditure going on clothes or shoes ( 37) and technology ( 20). When asked to indicate their understanding of credit and debit cards, the vast majority (91%) were able to correctly identify at least one valid description of a PIN number. Nearly three quarters (72%) knew that this was a number with four figures, and nearly seven in ten (69%) were aware that it was a number that should be kept secret. Knowledge around what to do with a new credit or debit card was patchier, with only 43% of young people knowing both that a new card should be signed and that the old one should be cut up Borrowing money and attitudes towards debt Borrowing considerations Young people demonstrated a good understanding of the aspects that they should consider when borrowing money: over eight in ten (83%) felt it was important to consider how much money they could afford to pay back when applying for a loan. Despite this, only one third (37%) were able to correctly identify the loan duration that would make the loan most expensive to pay back. There was also a degree of confusion around what constitutes debt: under half (46%) saw a mortgage as debt and exactly half classified a student loan as debt. General attitudes towards debt Expectations relating to future debt varied among young people. Nearly four in ten (37%) were unsure as to whether they felt themselves likely to get into debt in the future, while only slightly fewer (35%) said they thought they might, and one quarter (24%) did not think they would. On average, young people estimated the amount of debt they were likely to have by age 25 at 19,458, which is optimistic in comparison to the national average (including mortgages) of 29, When asked how much they perceived to be a lot of debt, three in five (60%) saw 5,000 as a lot of debt to get into, and just over two fifths (43%) saw 1,000 as a lot of debt. Nearly seven in ten (68%) young people worried about getting into a lot of debt in the future, with credit card debt seen as most concerning. Around two fifths of young people said they would not like to get into any debt, and one fifth agreed that getting into debt was to be expected but that they would try not to get into too much debt. Attitudes towards debt within higher education Nearly six out of ten (56%) young people expected to receive a higher education qualification, and almost half of these (47%) expected to owe over 20,000 by the time they had finished their studies. 1 UK Debt Statistics, Credit Action. Available at RBS MoneySense Research Panel Report

9 Their understanding of when they would be able to pay this debt back varied. Around one fifth (19%) of young people expected to start repaying this debt back while they were still at university and nearly a quarter (24%) thought they would begin repayments as soon as they left university Learning about money Roughly two thirds of young people (66%) felt that they knew more now about money management than they did a year ago. The vast majority of young people (82%) said they had learnt something on this topic in the last year, with just under half (47%) claiming to have learnt in school, and around two thirds (68%) saying they had learnt at home. Other sources of information on money management included family members who don t live at home (36%) and friends (22%). Most young people wanted to have either more (39%) or the same amount (48%) of lessons on money management at school. This can be explained partially by the perceived importance of financial education, demonstrated by 90% of young people saying that it is important to learn about managing money. With regard to who young people think should be delivering this information, over seven in ten (71%) thought it should be their parents and 50% thought it should be financial experts Financial aspirations Around six in ten young people were unable to imagine what their future salaries would be at certain ages. Those who provided a figure tended to have high expectations for when they are 25 ( 29,400) and 35 years old ( 56,500). Boys tended to have particularly high salary expectations. Many young people were unrealistic about when they would be able to afford to make large purchases and leave home. Many expected to be able to afford to leave home by 21 (67%), buy their own home by 25 (55%) and buy a car by 21 (68%). In reality, a large proportion of year-olds in the UK are still living at home (24% of men and 12% of women); 2 the average age at which people buy their first home is between 25 and 34, dependent on region; 3 and the average age for buying a first car is Most young people felt that they were likely to need financial products in the future, though only three in ten (29%) felt they would need a loan and 16% felt they would need an overdraft. The most commonly selected products that young 2 Social Trends, No. 39, 2009 Edition, Chapter 2: Households and Families, Office for National Statistics. Available at 39/chapter-2.pdf 3 The North offers the best chance for young buyers to get on the housing ladder, Halifax. Available at 4 'Getting onto the road costs young drivers 4,459', The Co-operative group. Available at RBS MoneySense Research Panel Report

10 people felt they would need were a bank account (84%), savings (80%), and insurance (79%). Around six in ten (62%) thought they would need a mortgage Impact of the MoneySense for Schools programme The research indicates that taking part in at least two MoneySense for Schools lessons can help to develop young people s attitudes and behaviours relating to personal finance. Young people who had received lessons using the MoneySense for Schools website were more likely to keep track of their money by checking their bank balance, and to show a positive attitude towards their own ability to save. They also demonstrated a good understanding of financial terms, and were more likely to be able to correctly identify what a PIN was. Perhaps as a result of their understanding of financial processes and services, pupils who had received MoneySense lessons were more likely to disagree that money worries them. A number of qualitative impacts of the programme could also be seen. MoneySense pupils were seen to have increased confidence in dealing with the practical, day-to-day aspects of banking, and some pupils had also begun talking to family members or school staff as a result of taking part in a MoneySense lesson. They also demonstrated that they understood the value of money, emphasising the need to save and to reduce their spending on unnecessary items in order to ensure that they were in the best possible financial situation for their future Findings from Northern Ireland The majority of pupils in Northern Ireland received money from an adult at home (84%) and most money received was in the form of cash. (89% of respondents received money this way.) The average income of young people in Northern Ireland was 87 per month, with older pupils receiving more than younger pupils ( 130 compared with 58). Pupils in Northern Ireland indicated that having their own money was important to them (87%), with older pupils tending to feel more strongly about this than those aged 12 to 15 (89% compared with 85%). This older age group were also more likely to be worried about money (42% compared with 25%). The average spend ( 109) among pupils was higher than the income that they claimed to receive and money was most likely to be spent on clothes and shoes, socialising or technology. To track their spending and saving, around half used formal methods (53%), and girls were particularly likely to do this (63% compared with 44% of boys). RBS MoneySense Research Panel Report

11 Pupils in Northern Ireland showed a positive attitude towards financial education and the vast majority (91%) thought that it was important to learn about managing their money. The same proportion (91%) stated that they wanted to receive the same number or more money management lessons in the future Findings from the Republic of Ireland Young people in the Republic of Ireland tended to receive money in cash (91%), with the average amount received per month standing at 110. Almost nine in ten (86%) claimed that they received money from an adult at home and just under half (45%) earned their own money. Young people in the Republic of Ireland were more likely to earn their money through completing chores at home (28%) than through working in a part-time job (14%). Having their own money was seen to be important to pupils in the Republic of Ireland (91% agreed) and around one third (32%) felt that they needed more money to be happy (32%). Many wanted more money in order to be able to pay their own way (48%). However, being able to afford nice possessions was also a reason given by around half of young people (48%) when asked to indicate why they felt that they needed more money. In terms of tracking their own spending and saving, the majority claimed to rely on remembering what they had spent (58%) and older pupils were more likely than younger pupils to use this method of tracking. Just under four in ten claimed to use formal methods (38%) such as checking their bank balance or printing a mini-statement from an ATM. Young people in the Republic of Ireland were seen to understand the importance of saving money (87%) and the importance of learning about money management (90%). The vast majority (92%) expressed that they would like either the same or more lessons on this subject in the future General trends from The MoneySense Research Panel has generated five years of evidence on the impact of the recession on young people. This summary reflects findings in section 6 of the report, which focuses on an analysis of the data from 2007 to Our analysis reveals the ways in which wider changes to financial management are affecting young people, from their aspirations for further education, to their optimism about household spending, to their own career aspirations. Young people, over time, were receiving less money and also spending less money. Fewer young people in 2011 than in 2007 were likely to have bank accounts. Fewer young people were earning their own money from part-time jobs or doing chores in 2011 than in RBS MoneySense Research Panel Report

12 Over the five-year period, girls have consistently been more worried about money than boys. Girls were more likely to be saving for higher education and were more optimistic about when they will leave home. Boys were more confident in their money management and were more likely to have saved all of their money year-olds were more likely to have been cautious about when they will leave home or own a house. They are more likely to be worried about money, and to earn more and spend more over time, as well as being slightly more likely to have conversations with adults about money year-olds were more likely to be encouraged to save by adults. In 2011, compared with earlier years, the number of young people thinking there would be more money in the future decreased over time as well as, interestingly, did the number of young people who said they would need more money to be happy. The number of young people not keeping track of their money halved between 2007 and 2011 (from 20% in 2007 to 10% in 2011). 2.2 Conclusions This final year of the MoneySense Research Panel concludes five years of insight into young people s spending and saving habits, their financial aspirations and their understanding of how to navigate the financial world. This report highlights that young people value their financial independence highly and that they understand how important that it is for them to save. Taking part in MoneySense for Schools lessons was seen to have many benefits for pupils. This group worried less about money and showed a positive attitude towards their own saving. They also indicated a better understanding of some financial processes and terms (e.g. identifying what a PIN is) and were more likely to keep track of their own money by checking their bank balances. Importantly, the overwhelming majority of young people stated that they wanted to receive the same number or more lessons on money management, with nine in ten claiming that it is important that they learn how to manage their own finances. Young people are clearly keen to learn about money and, in order to answer this need, the RBS Group will continue its 18-year programme of investing in financial education and remain committed to developing and improving the MoneySense for Schools programme. RBS MoneySense Research Panel Report

13 3. Background and objectives RBS commissioned the educational consultancy, EdComs, to conduct a fiveyear longitudinal study into the understanding, attitudes and behaviours of young people in relation to money management. This study is a proportionately representative survey of young people aged 12 19, who were still in full-time education (schools and colleges) across Great Britain, which has been run from 2007 to This year marks the fifth and final year of this research, with over 50,000 surveys now completed in total across a five year period. The aim of the MoneySense Research Panel was to take a measure of financial literacy within this cohort in any one year and to track attitudes and behaviour across a five-year period. Particular knowledge, attitudes and behaviour to be determined included: knowledge of financial terms and functions financial activity attitudes to saving purchasing activity attitudes to debt financial expectations for the future (in terms of debt, salary and purchases at particular life stages). This document summarises the approach taken and outlines the findings from the fifth and final year of the project, as well as the trends that can be measured from 2007 to The findings for the MoneySense panel 2011 are explored across five key sections (sections 5 to 9). The report begins in section 5 by exploring the main findings for the 2011 data, first for Great Britain and then for Northern Ireland. Section 6 then outlines trends in responses from 2007 to 2011, highlighting any differences across this five-year period. The next section (7) explores responses among the RBS test group (those who have had two or more MoneySense lessons in the past two years) and the control group (those who have not had MoneySense lessons); first for Great Britain using data from 2009 to 2011, and then for Northern Ireland. Section 8 compares the data received from young people in England, Scotland, Wales and Northern Ireland. The final section of the report comprises summaries of the responses received in each of the nations surveyed in RBS MoneySense Research Panel Report

14 4. Methodology 4.1 Student Online survey The survey was carried out between September and December 2011, via an online methodology administered by teachers in schools. 5 The questions remained largely consistent with the 2010 survey with new questions specifically about professional aspirations added in Questions included in the survey in 2011 can be found in the Appendix Sample A total of 158 schools took part in the research. A sample of 13,051 responses was achieved across England, Scotland, Wales, Northern Ireland and the Republic of Ireland, broken down as follows: 6 Nation Number of unweighted responses England 8,801 Scotland 1,721 Wales 1,196 Northern Ireland 953 Republic of Ireland 380 Two groups of young people were recruited to take part in the survey; a test group who had used the MoneySense programme, and a control group who had not. Since 2009, the criteria for the test group have been enhanced to only include young people who had personally received at least two MoneySense lessons in the past two years, with the control group not receiving any MoneySense lessons. Prior to 2009, pupils in the test group were at schools where a teacher had registered to use the MoneySense programme, but they may not have personally received any MoneySense lessons. Therefore, where test and control groups for Great Britain are referenced in this report, only those who took part in the survey in 2009, 2010 and 2011 are included. This year, test and control data is also provided for Northern Ireland. This data contains responses from pupils who have taken part in 2011 only. 7 5 Administration of the survey was carried out by Dubit. 6 This sample size ensures a margin of error of no more than +/-1.0% at the 95% confidence level. 7 Test and control data for the Republic of Ireland is not included due to the small sample size. RBS MoneySense Research Panel Report

15 Responses from England, Scotland and Wales were represented within the Great Britain sample. Responses were obtained from the following cities and surrounding areas: Birmingham Brighton Bristol Cardiff Edinburgh Glasgow Leeds Leicester Liverpool London Manchester Middlesbrough Newcastle Norwich Preston Portsmouth Swansea York. Data for the Northern Ireland main findings was obtained from Belfast and the surrounding areas, while data for the Republic of Ireland was obtained from Dublin and the surrounding areas Analysis and reporting A proportionately representative sample was constructed, which was based heavily on the 2007 sample frame for comparability of the reports and data over the five-year period. This report contains three main sections, each based on a separate set of data: The 2011 data (section 5) contains responses from young people aged in Great Britain, Northern Ireland and the Republic of Ireland (each treated separately). For Great Britain, this data was weighted by gender, year group, socioeconomic group and grouped region, in order to achieve full representation of the population of year-olds in Great Britain. For both Northern Ireland and the Republic of Ireland the data is weighted by gender, year group and socio-economic group, with categories banded as required to achieve weighting that is as representative as possible. The data for this section comprises the individual cohort of young people who responded to the survey in The trends in responses from 2007 to 2011 (section 6) contains data for young people aged and was weighted by gender, age, socio- RBS MoneySense Research Panel Report

16 economic group and region to ensure that the samples for each year were comparable. The MoneySense High-Level Report summaries key messages from this analysis and can be found at The test-and-control section (section 7) contains data for young people aged in Great Britain who completed the survey in 2009, 2010 and 2011 and was weighted by gender, age, socio-economic group and region to ensure that the samples for the test groups were comparable to the sample for the control groups across the three years. The test and control data for Northern Ireland is provided separately in this section and is weighted by gender, age and socio-economic group for comparability between test and control samples. The national comparisons section contains data for all young people aged in England, Scotland, Wales and Northern Ireland. This data has been weighted by socio-economic group to ensure representation of each nation, and by equal year group and gender for comparability. This document outlines the overall findings, highlighting differences by age, gender and socio-economic group where significant. 8 Reported bases are unweighted, meaning that the number of people shown as responding to a particular question (usually indicated on or near charts in the report) accurately reflects the number of people who answered the question. Unless otherwise stated, extreme values (outliers) were removed using a consistent process across the five years of the survey. The data has been analysed to 13 decimal places for the highest possible precision. When data is visually represented in charts, the bars may look different where value labels are the same. This is because the value labels are rounded to whole numbers, whereas the bars represent the exact value to 13 decimal places. Socio-economic group was determined by asking respondents about the job of the chief income earner in their household or the level of managerial responsibility of the chief income earner in their household. These questions can be viewed in detail in the questionnaire (see the Appendix). If this information was not provided, socio-economic group was determined by attributing the postcode of the school the young people attended against the affluence scale in the Censation 9 database, which uses census data. 4.2 Qualitative interviews To gain a greater understanding of the impact of the MoneySense programme, qualitative interviews were conducted in 2011 with groups of young people and 8 Differences are reported at the 95% confidence level, i.e. with 95% confidence that the result exists within the population. 9 RBS MoneySense Research Panel Report

17 teachers who had used the MoneySense programme in six schools across England (North and South), Wales, Scotland, Northern Ireland and the Republic of Ireland. In total, ten group sessions were conducted with both boys and girls ranging from 11 to 19 years old. Pupils 10 who had used the MoneySense programme were selected for interviews, as RBS were keen to understand which particular aspects of the programme had the biggest impact. Therefore, although the students interviewed would not fully represent young people across Great Britain, their responses were useful to add depth to the quantitative research findings. The following section describes in detail the findings from the quantitative and qualitative research strands, beginning with the responses received in 2011 from young people in Great Britain. 10 All pupils and their parents gave permission to be named in this report. RBS MoneySense Research Panel Report

18 5. Findings Current financial situation This section outlines the findings relating to young people s current financial situation. Figure 5.1(a) shows the different ways in which young people said they had received money in the previous month before the survey. Figure 5.1 (a) Thinking about all the money you have had in the last month, where (or how) did you get the money? Multiple choice, Base: All 2011 (11,718) Almost all young people (97%) said they had received money in the previous month; most commonly through pocket money or an allowance (59%), or from an adult at home (58%). One or the other of these responses was given by 82% of respondents. Almost a third of young people (32%) received money from another family member, and just over a quarter (27%) had received money from a birthday or celebration event. RBS MoneySense Research Panel Report

19 Nearly half (45%) of young people said they earned their own money in some way, with a quarter (25%) saying they received money for doing work or chores in the home, and a fifth (20%) reporting having a part-time job. Many of the young people interviewed qualitatively talked about receiving money regularly from their parents, and some indicated that receiving money was more often related to helping out around the house. Others reported a mixture of the two. Sometimes I get money and sometimes I don t, it depends if I ve tidied my room so I can t really budget for anything because I don t know if I m going to get it. [Chloe, 14, Falkirk, Scotland] Selling things (10%), borrowing money (10%), and doing chores for other people (10%) were equally likely to be a source of income for young people. There was a small, though significant, difference between girls and boys with regard to receiving pocket money or money from an adult at home, with 84% of girls receiving money in this way compared with 80% of boys. Unsurprisingly, year-olds year olds were the least likely to receive money in this way (78% compared with 84% of year-olds). The older age group were also the most likely to be earning their own money (51% compared with 41% of year-olds). Education Maintenance Allowance (EMA currently available for yearolds in Scotland, Wales and Northern Ireland) was a prominent source of income for older pupils, with 20% of year-olds citing this source. This was particularly high among those aged 18+, among whom the percentage rose to 39%. Young people were asked to indicate if they had a bank account, and nearly three quarters (74%) reported that they did. Older pupils were more likely to have an account (91% of year-olds, compared with 65% of yearolds), as were those in higher socio-economic groups (80% of ABs, compared with 76% of Cs and 68% of DEs). In the 2011 data there was no significant gender difference in likelihood to have a bank account. When interviewed qualitatively, most young people talked about having some of their money in a bank or building society account, though many also said that this was primarily managed by an adult. In these cases young people often mentioned that the money in the account was intended for a specific purpose and that they would not be able to use the money kept in there until they were older. When we get birthday or Christmas money in cheques, it goes into the bank account for when we are sixteen. RBS MoneySense Research Panel Report

20 [Alison, 12, London, England] The survey asked young people to indicate the ways in which they receive the money that they are given. Figure 5.1(b) shows the findings. Figure 5.1(b) How do you receive money you are given? Multiple choice, Base: All 2011 (11,718) The vast majority of young people (85%) indicated that they received money in the form of cash, with the next most frequently selected option being to have money put into their bank or building society (43%). However there was a marked difference in proportionate responses across these two options between younger and older respondents. 89% of year-olds said they received cash, compared with 79% of those aged 16 19; whereas 62% of yearolds said money was put into their bank or building society account, compared with only 32% of year-olds. Other popular ways of receiving money among young people were having credit put on their phone (16%), having their phone bill paid (12%), and receiving gift vouchers (9%). These methods were all more popular among girls than boys, with 20% girls having credit put on their phone compared with 11% of boys, 17% girls having their phone bill paid compared with 8% of boys, and 11% girls being given gift vouchers compared with 7% of boys. Having money put into an online RBS MoneySense Research Panel Report

21 account was selected by 6% pupils overall, and was slightly more popular with boys (6%) than with girls (5%). Young people were asked to say how much money they usually receive each month from a variety of sources. Owing to the large number of extremely high responses in 2008 to a similar question, pupils were asked to confirm the amount they had received if the value was 600 or more. Figure 5.1 (c) shows the average (mean) amounts quoted, as well as the average expressed as the middle value quoted (median), to the nearest pound. Figure 5.1 (c) Each month, how much money do you get and from where? Open response. Base: All who received money in previous month, 2011 (11,320) How do you receive Majority of responses money? Mean (the average amount) Median (middle value of all responses) In pocket money from adults at home % stated 0 87% stated 50 or less In pocket money from grandparents 7 0 From a job 30 0 Earning money from another activity, e.g. household chores Earning money from selling things From another place 9 0 Overall figures % stated 0 94% stated 25 or less 75% stated 0 86% stated 50 or less 72% stated 0 96% stated 25 or less 87% stated 0 97% stated 25 or less 79% stated 0 91% stated 25 or less 56% stated 50 or less 78% stated 100 or less 91% stated 200 or less On average young people said they received a total of 83 each month, with most income accounted for by a job ( 30) or as pocket money from adults at home ( 29). Over a third (38%) received pocket money from grandparents, but the amount received ( 7) was much lower than they were getting from other adults at home. Boys reported receiving more money from jobs ( 104, compared with 71 for girls), as did year-olds ( 66, compared with 9 for year-olds), though this is unsurprising as we already know that older students are more likely to be receiving money from a job. The amount of money received in total each month rose steadily with age, starting with an average of 41 per month for 12-year-olds and peaking at 197 per month for those aged over 18. RBS MoneySense Research Panel Report

22 Young people were then asked to say how much money they usually received each month via different methods. Owing to the large number of extremely high responses in 2008 to this question, for the last three years pupils have been asked to confirm the amount they had received if the value was 600 or more. Figure 5.1 (d) shows the average (mean) amounts quoted, as well as the average expressed as the median (middle value quoted), to the nearest pound. The total amount received is different in Figure 5.1 (d) from the total amount shown in Figure 5.1 (c) because some young people completed different amounts for each question and the figures are based on average amounts across a large sample. Figure 5.1 (d) You said that you get X per month (total amount from Figure 5.1 (c). How do you receive that money? Open response, Base: All who received money in the previous month, 2011 (11,320) Majority of responses Type of money received Mean (the average amount) Median (middle value of all responses) Cash % stated 0 77% stated 50 or less Bank/building society 65% stated account 85% stated 50 or less Online account % stated 0 Mobile phone topup/credit 87% stated Bills paid % stated 0 92% stated 25 or less Gift vouchers % stated 0 Other % stated 0 Total amount received per person last month (average) 11 56% stated 50 or less 78% stated 100 or less 91% stated 200 or less Young people reported receiving on average 82 per month, the majority of which ( 44) was received in cash, and the next largest amount of which ( 31) was received via a bank or building society account. Sums of money paid into online accounts ( 3) and mobile phone or top-up credit ( 2) per month were considerably smaller. Boys received more money on average per month ( 89 compared with 76 received by girls), and most of this difference was accounted for by higher levels of cash received ( 50, compared with 38 received by girls). Total money received per month increased steadily with age ( 40 for 12-year-olds, increasing to 197 for over-18s); the biggest leap between age groups was between 15 ( 66) and 16 ( 102), which is likely to be related to EMA payments (which are 11 Figures shown in this table are rounded. Total amount figure is calculated on raw figures (including decimal places). RBS MoneySense Research Panel Report

23 35 per month received into a bank account from age 16). Money paid into bank accounts varied most considerably with age, rising from 6 at age 12 to 112 at age 18+. On average, those in socio-economic group DE receive more money in cash per month ( 49) than those in group C ( 41) and group AB ( 40). Those in group DE also receive the most money ( 86) per month in total, compared with young people in socio-economic groups AB ( 83) and C ( 80) Summary Almost all young people (97%) had received money in the previous month, most commonly as pocket money or from an adult at home (82%). Girls were more likely than boys to receive money in this way. Nearly half (45%) of all young people said they earned their own money; a quarter (25%) were paid for doing chores around the house, and a fifth (20%) said they had a part-time job. Older pupils were more likely to be earning their own money. Young people received on average 83 per month, mostly from a job ( 30) or from pocket money ( 29). Most of this ( 44) was received as cash, or as direct payments into their bank or building society account ( 31). Boys received more money than girls, and amount received per month increased steadily with age. Nearly three quarters of young people (74%) said they had a bank account, and this proportion was higher among older pupils and those in socio-economic groups AB. RBS MoneySense Research Panel Report

24 5.2 Attitudes towards their financial situation This section outlines the findings relating to young people s attitudes towards, and perceptions of, their financial situation, both now and in the future Attitudes towards their current situation Young people were asked about their feelings on the amount of money they had. Figure (a) shows the findings. Figure (a) Please say how much you agree or disagree with these statements about you Single response for each. Base: All 2011 (11,718) An overwhelming majority (85%) of the young people surveyed agreed that it was important to them to have their own money. Boys were more likely to agree strongly with this statement than girls (46% compared with 40%), as were older pupils and students (50% of year-olds, compared with 39% of year-olds). Over half (53%) of s agreed that their money always goes too quickly, especially girls (55% compared with 50% of boys) and those in socio-economic group DE (57% compared with 52% of C and 48% of AB). RBS MoneySense Research Panel Report

25 However, only just over a quarter of pupils (27%) disagreed that they always had enough money. This element of discontent was once again driven by girls, of whom 29% disagreed compared with 24% of boys. Older pupils were also more likely to disagree that they always had enough money, with 31% of yearolds and 24% of year-olds disagreeing. Just over a quarter (29%) of young people agreed that money was a worry, and money was more of a worry for girls (33%) than boys (24%). In the qualitative interviews, pupils indicated that they felt too young and too lacking in responsibility to worry about money too seriously: Well, not really, not at the moment because I don t have any responsibilities, I m just a teenager. [Moazzem, 17, Cardiff, Wales] To investigate this further, young people who said they were worried about money were asked to write, in their own words, what they were worried about. Figure (b) shows the coded results. Figure (b) Why does money worry you? Open response. Base: All who worry about money 2011 (2,917) RBS MoneySense Research Panel Report

26 The biggest worries for pupils seemed to centre on future aspirations rather than specific current issues. The most popular reasons given for money worries were: not wanting to get into debt and wanting to have a nice lifestyle (both 60%); thinking they won t have enough money for the future (52%); and worrying about needing to pay for university (50%). Girls were more likely to say they worried about not having enough money for the future (58% compared with 43% of boys), that they may need to pay for university (55% compared with 43% of boys) and that they worried about finding a job (49% compared with 40% of boys). Boys, on the other hand, were slightly more likely than girls to worry about not wanting to work too hard (9% boys compared with 7% of girls). Those in socio-economic group AB were more worried about getting into debt (66% compared with 60% of C and 57% of DE) and about wanting to have a nice lifestyle (64% compared with 59% of C and 57% of DE). Those in group DE were more concerned about needing to support their family (43% compared with 38% of C and 37% of AB). There was some indication that young people (especially those in the younger age groups) worried about money in a different way to adults: If I had 50 in my pocket and I lost that 50 on the bus, I d be devastated, because it s a lot of money. [Keaton, 13, Manchester, England] Sometimes I worry about it because if my friends are all going out then I don t have any money, I feel quite sad and depressed because they re all going out and I m just sitting there in the house doing nothing. [Kirsten, 14, Falkirk, Scotland] Young people were then asked if they needed more money to be happy. Figure (c) shows the findings. Figure (c) Do you need any more money to be happy? Single response. Base: All, 2011 (11,718) Over half (60%) of young people said they did not feel they needed any more money to be happy. This was more evident among girls (63%) and younger RBS MoneySense Research Panel Report

27 pupils (65% of year-olds) than among boys (58%) and older pupils (51% year-olds). The difference in attitudes between younger and older pupils was echoed in the qualitative interviews to some degree, though a pragmatic attitude around the benefits of money seemed to be shared by most: I don t think you need money to be happy, but I think it s good to have some to rely on. [Kirsty, 12, London, England] To a certain extent I think it makes you happy to have money just sitting there, so if you have a large amount of money you can feel proud of yourself if you worked to get it, or something, and obviously you can buy things that will make you happy and will make you enjoy life a bit more. So I think to a certain extent money does change happiness levels. [Dominic, 17, Cardiff, Wales] Those who felt that they needed more money to be happy were asked how much more money, per month, they would need. From this a per-year amount was calculated. Figure (d) How much more money do you think you would need to be happy? Single response. Base: All those who need more money to be happy and gave a figure, excluding outliers, 2011 (4,193) Mean amount (the average response) Median (the middle value of all response given) per month 1, per year 12, Majority of responses 71% wanted 100 or less 81% wanted 200 or less 90% wanted 500 or less - On average, the young people who had indicated they needed more money to be happy felt they needed an extra 1,031 per month to achieve this goal. However, the median (middle) value was much lower at 70 per month, and the vast majority (90%) said they wanted 500 or less. Over a quarter (27%) said they did not know how much more they would need to be happy. The desired monthly increase was much higher among boys, who felt they needed a mean amount of 1,315 per month more, compared with girls who wanted only 668 more. The oldest pupils (aged 18+) required the most extra money per month ( 3,062) and 12-year-olds required the least ( 143). RBS MoneySense Research Panel Report

28 These young people were then asked why they felt they needed more money to be happy. The results are shown in Figure (e). Figure (e) Why do you feel you need more money to be happy? Multiple response. Base: All, 2011 (11,718) Over half (58%) of young people said that a reason they needed more money was to be happy in order to save for their future, with more girls (60%) than boys (57%) selecting this option, as well as more older pupils (63% of yearolds, compared with 54% of year-olds). On a similar theme, nearly as many young people (57%) indicated that they needed more money in order to be able to pay for more themselves. Once again, girls were more likely to select this option (61%) than boys (54%). Those in the age group (63%) agreed more than those in the age group (52%). On a different theme, nearly half (45%) of young people said they needed more money in order to have a better lifestyle, and this response was more common among boys (47%) than girls (43%). Two fifths (40%) of young people said they wanted nice cars, clothes and houses, like the people they admire. This was a more popular statement among girls (42% compared with 38% of boys) and year-olds (42% compared with 37% of year-olds). Many pupils (40%) were also thinking about the fact that they needed to start saving for university. Girls (44% compared with 36% of boys), year-olds (47% compared with 34% of year-olds) and those in socio-economic RBS MoneySense Research Panel Report

29 groups AB (45%) and C (41%, compared with 35% in group DE), were more likely to state this as a reason Perception of changes to their situation Young people were asked whether adults in their house were spending more, the same or less on different commodities and activities. The results are shown in Figure (a). Figure (a) In the last year are adults in your house spending more, less or the same money on each of the following? Single response for each. Base: All 2011 (11,718) Two fifths of young people felt that their families were spending more on basics like utilities (40%) and around a third felt they were spending more on food (34%). Just under a quarter felt that more was being spent on holidays (23%) and even fewer felt their families were spending more on activities, trips and days out (16%). Younger respondents were, in general, more likely to report that they did not know how their families spending had differed over the last year. Young people were asked if the amount of pocket money that they received had changed since a year ago. The results are shown in Figure (b). RBS MoneySense Research Panel Report

30 Figure (b) Are the adults at home giving you more or less money for your pocket money/allowance than they were a year ago? Single response. Base: All 2011 (11,718) Nearly a third of young people indicated that they were receiving more in pocket money or allowances than they were a year ago, and two fifths (40%) said they were receiving the same amount. Those in the age group were more likely to be receiving more (36% compared with 26% of year-olds), as were those in socio-economic group AB (35% compared with 32% of group C, and 31% of group DE). Young people were asked how they saw their own and their family s finances changing in a year s time. Figure (c) illustrates the results. Figure (c) In a year s time, do you think that there will be more or less money: for the adults at home to spend; and for you to spend? Single response. Base: All 2011 (11,718) RBS MoneySense Research Panel Report

31 Young people appeared to have a relatively positive outlook on their finances for the coming year, with nearly a third feeling that they personally would have more (31%) or the same amount (31%) of money to spend. Boys were more optimistic than girls. (36% thought they would have more to spend, compared with 26% girls.) They were slightly less optimistic about the finances of the adults at home: just under a quarter (22%) of young people thought that adults at home would have more money to spend in a year s time, though over a third (36%) thought they would have the same amount at their disposal. Once again, boys were more optimistic than girls (24% of boys felt that adults would have more to spend, compared with 19% of girls), as were younger pupils (23% of year-olds, compared with 20% of year-olds). Young people were asked about the financial topics they discuss with the adults in their home. Figure (d) illustrates the results. Figure (d) Which of the following things about money do you talk to the adults in your home about? Multiple response. Base: All 2011 (11,718) *Note: coded from open comments for other RBS MoneySense Research Panel Report

32 Nearly three quarters (71%) of all young people discuss at least one aspect of household money with the adults at home. The most common topics were what they spend money on (39%), how much food or utility bills cost (38%), how much money they earn (34%) and how much money they spend (33%). Over a quarter of young people said they never discussed anything to do with household money with the adults at home. Discussions from the qualitative interviews indicated that this may be because they do not want to expose themselves to this type of stress before they need to: I think it would be stressful for us, because at this young age we re learning about these things [ ] it s not something you want to look forward to. My parents don t share it with me, and when they try to I tell them not tell me, because it s not something I want to stress myself with. [Moazzem, 17, Cardiff, Wales] Those in the qualitative interviews who did pay attention to bills felt it was important to learn as they would have to deal with these issues themselves one day: I kind of pay loads of attention to bills and stuff coming into my house. Usually my mum, like, shows me letters of her bills, and I do pay lots of attention because she says, One day you ll have to deal with this stuff, too. [Hamza, 18, Cardiff, Wales] Just under a quarter of young people (24%) discussed how much adults in their home saved and fewer still (22%) discussed any changes to the amount of money available in the household. Boys appeared slightly more interested than girls in how much money the adults earned (35% compared with 33%) and how much the adults saved (25% compared with 23%). Older students were more likely to have discussions around most aspects of household money, such as how much utility bills cost and what kind of bank accounts adults in the home have, though younger pupils were more interested than older pupils in how much the adults earned (35% of year-olds, compared with 33% of year-olds). Young people were asked to indicate their level of agreement with a number of statements relating to the financial behaviour of the adults at home. Figure (e) illustrates the results. Figure (e) Which of the following is true for the adults at home? Multiple response. Base: All, 2011 (11,718) RBS MoneySense Research Panel Report

33 Responses to this question suggest that many adults are looking to be careful with money. Half of young people said that the adults at home wanted to save more money and just under half (49%) said they felt had to watch how much they spend. Just over two fifths (42%) said that adults spent less money on themselves than they do on them, slightly fewer (41%) said that adults spoke to them about saving money for the future, and just over a third (36%) agreed the adults at home worried about money. Older pupils and female students were more likely to agree with the majority of statements, with the biggest difference for older students relating to adults worrying about money (33% of yearolds agreed, compared with 41% of year-olds). The biggest gender difference centred on adults spending less on themselves than on the students (35% of boys agreed, compared with 49% of girls) Summary Young people indicated that they greatly value their financial independence, with an overwhelming majority (85%) agreeing that it is important for them to have their own money. Over half (53%) of pupils agreed that their money always goes too quickly. Just over a quarter (28%) of pupils said that money worried them, and a similar proportion (27%) disagreed with the statement that they always had enough money. Young people were asked an open-ended question on why money worried them, and their coded responses alluded to concerns relating to future aspirations. Three fifths (60%) answered that they did not want to get into debt, and the same proportion said that they wanted to have a nice lifestyle. Just over half (52%) of young people said they did not think they would have enough money for the future, and exactly half worried that they may need to pay for university. RBS MoneySense Research Panel Report

34 Focusing on their attitudes to their current situation, young people were asked if they needed more money to be happy. Over half (60%) said they did not. Of the two fifths (40%) who said they needed more money to be happy, the mean additional amount that they said would need per month was 1,031, and the median was % said they would need over 500 per month more to be happy. The desired monthly increase was higher among boys and older pupils. When asked why they needed more money to be happy, the main reasons given were around the future and their independence, with over half (58%) saying that they wanted to save for the future, and slightly fewer (57%) saying that they wanted to be able to pay for more themselves. Young people indicated that their families had been spending more or the same amount of money on essentials such as food and utilities, and either the same or less on activities, trips and holidays. However, nearly a third (32%) of young people said that although their families appeared to be tightening their belts with regard to luxuries, they were receiving more pocket money than they had in the previous year. Even more young people (40%) said that they were receiving the same amount. Despite this, young people also appeared optimistic about the amount of money that would be available for both them and the adults at home to spend in a year s time. Most young people felt that they would have more or the same amount of money to spend in a year s time, though fewer felt their parents would have more to spend. Finally, young people were asked what financial topics they discussed with adults at home. Most discussions revolved around incomings and outgoings; what they spend money on (39%), how much food or utility bills cost (38%), how much money they earn (34%), and how much money they spend (33%). They were also asked about other financial behaviour of the adults at home; half of young people said that the adults at home wanted to save more money, and just under half (49%) said the adults felt they had to watch how much they spent. RBS MoneySense Research Panel Report

35 5.3 Financial behaviour This section explores young people s money management skills, in relation to both spending and saving Budgeting Young people were asked how they keep track of their money. Figure 5.3.1(a) displays the findings. Figure (a) How do you keep track of the money you ve spent? Multiple response. Base: All, 2011 (11,718) Nine out of ten young people (90%) said they used at least one of the above methods to keep track of their money. This was slightly higher among older pupils (92% of year-olds, compared with 88% of year-olds) and girls (90% compared with 89% boys). Just over half of young people (52%) said they kept track by remembering what they had spent in their head, and over two fifths (43%) said they looked at what they had left in their pocket or purse. Over half of pupils (58%) said they used at least one formal method of monitoring their money (such as checking their bank balance, reading bank statements, or printing off mini-statements). This was higher among girls (63% compared with 53% of boys), older pupils (72% of year-olds, compared RBS MoneySense Research Panel Report

36 with 50% of year-olds), and those in socio-economic group AB (63% compared with 58% of C, and 55% of DE). Looking specifically at formal methods of money management used, just under two fifths (38%) said they kept the receipts of items they had purchased, just over a quarter (27%) said they checked their bank balance regularly, and slightly fewer (26%) said they read their bank statement. The qualitative interviews highlighted some quite contrasting attitudes with regard to how much young people keep track of their money, from those who keep track of comings and goings: I ve got a bank book that tells me how much money goes in and comes out. [Oliver, 13, London, England] to others who favour making a mental note of what they are spending: If I've got money with me, I have to look back and check what I'm doing but I'll keep it in my head. I won't write it down because I lose the paper. [Yokha, 14, Manchester, England] Young people were asked to consider their approach to budgeting. Figure (b) shows their level of agreement with two statements about running out of money and spending money that they might need for something else. Figure (b) Please say how much you agree, or disagree, with each of these statements about spending. Single response. Base: All, 2011 (11,718) Young people appeared to have a sensible attitude to spending, with nearly seven in ten (69%) saying that they would not spend money on things if they RBS MoneySense Research Panel Report

37 thought they might need the money for something else. This agreement was higher among older pupils (76% of year-olds agreed, compared with 66% of year-olds), and lower among those in socio-economic group DE (67% compared with 70% of C and 73% of AB). Interestingly, there were no notable gender differences. Around a third (33%) of pupils indicated that they felt they had a financial safety net at home, by agreeing to some degree with the statement that if they ran out of money, they could get more from someone else at home. This agreement was higher among girls (35% compared with 31% of boys). There were no notable age-related differences in responses to this statement. This habit was evident in the qualitative interviews. Sometimes if I spent all my paper round money at the weekend, I ask my mum if I can borrow money from Monday to Friday then I pay her back when I get my wages on Friday. [Liam, 14, Falkirk, Scotland] Saving money This section explores young people s behaviours relating to saving, including their tendency to save or spend, what they may save for, and where they save their money. Young people were asked what they had done with the money they had received in the previous month. Figure (a) shows the findings. Figure (a) Thinking about the money you got in the last month, what did you do with it? Single response. Base: All, 2011 (11,718) Around three quarters (76%) of young people said that they had saved at least some of their money in the last month. This was slightly higher among older students, with 79% of year-olds claiming they had saved some money in RBS MoneySense Research Panel Report

38 the last month, compared with 75% of year-olds. Those in socioeconomic group AB were also more likely to say they had saved some money (81% compared with 77% of C and 73% of DE). Just under one fifth (18%) of young people said they had spent all of their money without saving any. The proportion of money saved was relatively evenly spread, with a quarter (25%) of young people saying that they had spent most of their money and saved only a little, just over one fifth (21%) saying they had spent half and saved half, and a quarter (25%) of young people saying they had saved most of it. Some responses in the qualitative interviews suggested that saving might be quite an ad hoc activity, with relatively short-term goals: The saving s good, but again I don t think it s that important. It s always good to have extra. If you get paid, don t spend it all at once, put some away. Then at the end of the month you know you ll have something to go back to, if something pops up. It s important, but if you don t have the money don t do it. [Charlotte, 17, Cardiff, Wales] I ve been saving for an adaptor for my ipod. I had to wait a year and a half, but I gave up and bought a turtle instead because I couldn t wait any longer. [Max, 12, London, England] Shopping sprees. If I m going to Lakeside or somewhere, then I save up so I have some money. [Joanne- 12, London, England] Young people were then asked approximately how much they usually manage to save on a monthly basis. The table below shows the results for all those who claimed to have saved in the last month. Figure (b) Roughly how much money do you usually save each month? Single response open numeric. Base: All who had saved money in the last month, excluding outliers, 2011 (6,229) Amount saved each month % of those who saved any money last month % % % % % % % RBS MoneySense Research Panel Report

39 Nearly one third (30%) of young people said they did not save regularly. This proportion was higher among girls (32%) than boys (28%), and among older students (33% of year-olds, compared with 29% of year-olds). Despite a higher proportion of older students saying they did not save regularly, the amount that this group were saving per month tended to be higher; they were more likely than year-olds to be saving between 21 and over, whereas the younger group were more likely to be saving between 1 and 20. Overall, nearly a quarter (24%) of young people said they saved between 11 and 20 per month, and a fifth (20%) said they saved between 21 and 40. Young people who claimed to have saved money in the previous month were asked who encouraged them to save. Figure (b) Who, if anyone, encourages you to save? Single response. Base: Respondents who save, 2011 (8,834) NB: Responses over 3% are shown The vast majority of young people were encouraged to save by a family member: over three quarters (78%) said that their parents encouraged them to save, and nearly three in ten (29%) were encouraged to save by their grandparents. Girls (80%) were more likely than boys (77%) to be encouraged to save by their parents, whereas boys (31%) appeared more likely than girls (27%) to be encouraged to save by their grandparents. RBS MoneySense Research Panel Report

40 Older students were less likely to be encouraged to save, with 20% of year-olds selecting no-one, compared with 15% of year-olds. A number of younger students talked in the qualitative interviews about the encouragement they receive, particularly from their parents: It s mostly my dad, because my brother and sister aren t that good with money and they don t want me to end up having no money, but he s, kind of, failed seeing as I ve only got 25. [Heather, 13, Falkirk, Scotland] My mum has these three golden rules. If I go shopping and she gives me 20, she ll ask me to bring 10 home. She says if I buy anything, then I have to ask myself the three golden rules. I can only buy it if I want it, need it, and if I can afford it. If all of the answers are yes, then I can buy it, and if any of them are no, then I can t. [Jenny, 13, London, England] Young people who had claimed to be saving money in the previous month were asked about the timescales involved in their money saving. Figure (c) displays the results. Figure (c) Which of the following applies to you when it comes to saving money? Multiple response. Base: All who save, 2011 (8,834) The scope of young people s saving appears quite varied: just under two fifths (38%) said they were saving but they were not sure what for yet, and slightly more (42%) said that they were saving for their future. Around a quarter (23%) RBS MoneySense Research Panel Report

41 said they were saving to get something within the next year, the same proportion said they were saving to get something in the next month, and under one fifth (17%) were looking at even shorter-term goals by saving to get something next week. Girls tended to have longer-term savings goals, with 43% saying they were saving for their future (compared with 41% of boys). 41% of girls said they were saving but did not know what for yet (compared with 34% of boys). Boys were more likely to say they were saving to get something next month (26% compared with 20% of girls), or saving to get something within the next year (24% of boys, compared with 22% of girls). Older students also tended to be looking more to the future, with 50% of year-olds saying they were saving for their future, compared with only 37% of year-olds. Those in socio-economic group DE were most likely to be saving to get something in the next week (19% compared with 16% of C, and 15% of AB) and those in groups AB were most likely to be saving to get something in the next year (25% compared with 22% of C, and 21% of DE). Those who claimed to be saving for something specific were then asked to indicate the items that they were saving for. These results are shown in Figure (d). Figure (d) What are you saving for? Multiple response. Base: All who are saving for something specific, 2011 (4,364) RBS MoneySense Research Panel Report

42 *Coded from other responses Note: Responses over 1% are shown Most young people tended to be saving for items such as clothes or shoes (54%), technology (42%) or socialising (41%). There were clear gender differences with regard to what items were being saved for. Girls were much more likely to be saving for clothes or shoes (64% compared with 44% of boys), whereas boys strongly favoured saving for technology (61% compared with 21% of girls). Older pupils were more likely to be saving for more substantial or longer-term goals, such as college or university, holidays, driving lessons and moving out of home. The young people were asked about the extent to which they agreed with five different statements concerning money. These results are shown in Figure (e). Figure (e) Please tell us how much you agree or disagree with the following statements. Single response for each. Base: All, 2011 (11,718) RBS MoneySense Research Panel Report

43 Attitudes towards saving appeared mainly positive: the vast majority of young people (86%) agreed that it was important to save money, and nearly two thirds (62%) said that they saved more now than they used to. Just under half (48%) of young people felt that they were good at saving money, though around one third (36%) admitted that they found it difficult. Four fifths (81%) of young people disagreed that there was no point in saving money. More boys than girls agreed that they were good at saving money (52% compared with 45% of girls). Younger pupils were more likely to agree that they were saving more now than they used to (63% of year-olds, compared with 59% of year-olds). Attitudes expressed in the qualitative interviews also demonstrated a range of reasons for young people to save money: Because if you did not have any money, if you did not have anything saved up, if something happened and you needed to buy something, you would not be able to buy it. [Kirsten, 14, Falkirk, Scotland] The country s situation might get worse than it is now, so people might have to pay more and more taxes to pay for Europe and the world. We need to be well prepared before that happens. I think most people are encouraged by that to save up as it could get worse in the coming years. [Max, 12, London, England] RBS MoneySense Research Panel Report

44 The young people who claimed to have saved some money in the last month were then asked where they saved this money. The results are displayed in Figure (f). Figure (f) Where do you save your money? Multiple response. Base: All those saving, 2011 (8,834) The most popular places for young people to save their money were at home (60%), or in a bank or building society (59%). A small proportion (14%) said that an adult at home looked after their money for them. Older pupils and students were more likely to save their money in a bank or building society (78% of year-olds, compared with 47% of year-olds); younger pupils scored higher on keeping their money at home, in a piggy bank, or having an adult at home look after it. Those in socio-economic group DE were more likely than others to save money at home, or in a piggy bank or money box. From talking to young people in the qualitative interviews, it appeared that the location of savings may depend on the amounts in question. Some young people keep small amounts in a piggy bank or in their purse, and larger sums in a bank or building society account: I just keep it in my purse and sometimes my bank account if it s quite a lot. [Nimrah, 13, Falkirk, Scotland] I just put small change in it, but me and my sister have got another piggy bank that has 5ps and 1ps in it. So when we ve got quite a lot we ll spend it on something we both want. [Heather, 13, Falkirk, Scotland] RBS MoneySense Research Panel Report

45 5.3.3 Spending This section explores young people s understanding of financial terms and procedures and their spending habits. Young people were asked to select from a pre-coded list what a PIN number is. The results are shown in Figure (a). Figure (a) A PIN number is..? Please read the whole list below, and indicate which of them you think are true about a PIN number. Multiple response. Base: All, 2011 (11,718) The vast majority (91%) of young people were able to correctly identify at least one valid description of a PIN number. This proportion was higher in older pupils and students (97% of year-olds, compared with 88% of year-olds). Girls were also slightly more likely than boys to choose at least one correct answer (93% compared with 90% of boys), as were those in socio-economic group AB (93% compared with 92% of C and 89% of DE). The most popular option was a number with 4 figures, identified by nearly three quarters (72%) of young people. Just over two thirds (69%) correctly answered that a PIN number was a number that should be kept secret and slightly fewer (65%) knew that it should be used at the cashpoint. Just over half (53%) of young people identified a PIN number as something that is used with a debit card. Other aspects of PIN numbers were less clear: under a third (30%) of young people knew that PIN was an acronym for personal identification number, while RBS MoneySense Research Panel Report

46 slightly more (31%) thought that it was a credit card number, and over a quarter (27%) thought that a PIN number was a bank account number. The young people were then asked what they should do when a new bank card is received. Figure (b) What should you do as soon as you receive a new credit or debit card? Multiple choice. Base: All, 2010 (11,718) Six out of ten young people (61%) knew that they needed to sign their new card as soon as they received it and roughly the same proportion (60%) knew to cut up their old card. Only 43% of young people correctly identified that they needed to do both of these things, though this was higher among girls (47% compared with 39% of boys), older students (55% of year-olds, compared with 36% of year-olds) and those in socio-economic group AB (49% compared with 43% of C and 39% of DE). Young people were then asked about the amounts of money that they spent on particular items. Figure (c) shows the findings to the nearest pound. Figure (c) Roughly how much did you spend on each of these things in the last month, with your own money or money given to you? Single response. Base: All, 2011 (11,718) RBS MoneySense Research Panel Report

47 Mean amount ( ) Median amount ( ) Majority of responses Clothes or shoes 31% spent % spent 50 or less Technology 57% spent % spent 25 or less Socialising 25% spent % spent 25 or less Driving lessons % spent 0 Food 22% spent % spent 25 or less Sports/hobbies 69% spent % spent 25 or less Music 76% spent % spent 25 or less Total 66% spent 100 or less % spent 200 or less Young people estimated spending an average of 110 in total on the above items. Boys tended to spend more, with an average of 125 per month, compared with the 95 estimated by girls. The greatest expenditure was on clothes or shoes ( 37) followed by technology ( 20 per month, though this was mostly driven by boys, who spent 32 per month, whereas girls only reported spending 7 on these items). The next biggest drain on funds was socialising, on which an average of 19 was spent per month. Older students spent significantly more money in total per month: those aged reported spending a total of 137 per month, while year-olds claimed they spent 95 per month in total. RBS MoneySense Research Panel Report

48 5.3.4 Summary Budgeting Nine out of ten young people reported using one or more methods of keeping track of their money, with the most common methods being informal, such as keeping track in their heads (52%). Young people also appeared to be relatively sensible with their spending, with nearly seven in ten (69%) agreeing that they would not spend money on stuff if they thought they might need the money for something else. Saving Nearly nine out of ten (86%) young people agreed that it was important to save money and nearly two thirds (62%) said they were saving more than they used to. Around three quarters (76%) had saved at least some of the money that they had received in the previous month, with nearly eight out of ten (78%) saying that their parents encouraged them to save. The most popular places for young people to save their money were at home (60%), or in a bank or building society (59%). Spending On average, young people estimated that they spent 110 per month, with most expenditure going on clothes or shoes ( 37) and technology ( 20). With regard to young people s understanding of PIN numbers, the vast majority (91%) were able to correctly identify at least one valid description of a PIN number. Nearly three quarters (72%) knew that this was a number with 4 figures, and nearly seven in ten (69%) were aware that it was a number that should be kept secret. Knowledge around what to do with a new credit or debit card was patchier, with only 43% of young people knowing both that a new card should be signed and that the old one should be cut up. RBS MoneySense Research Panel Report

49 5.4 Borrowing money and attitudes towards debt This section explores young people s understanding of debt and borrowing Borrowing considerations Young people were asked to rate the importance of various considerations when applying for a loan. Figure (a) depicts these findings. Figure (a) When applying for a loan, how important do you think it is to consider the following things? Single response to each, Base: All 2011 (11,718) More than eight in ten (83%) young people felt that it was important to consider how much they could afford to pay back when applying for a loan and slightly more (83%) saw how much time they had to pay the money back as being important. Over three quarters (80%) felt that the amount of money they needed was an important consideration, and nearly six in ten (58%) rated the APR they were offered as being an important factor. Somewhat worryingly, nearly a quarter of young people (21%) felt that borrowing as much as they could was an important factor to consider when applying for a loan. Girls were more likely to highlight how much they can afford to pay back (84% agreed that this was important, compared with 81% of boys) and how much time they would need to pay it back (84% compared with 81% of boys) as key considerations. Boys, on the other hand, were more likely than girls to consider the APR they were offered (63% compared with 53% of boys) year-olds were more likely than year-olds to rate all factors as important except borrowing as much as they can. RBS MoneySense Research Panel Report

50 The young people were asked a question concerning interest rates, to ascertain their understanding of APR and loan terms. They were shown two different rates and loan terms and were asked to indicate which would cost them the least. The results from this are shown in Figure (b). Figure (b) Imagine that you are taking out a loan at an APR of 15%; which of the following loan durations would make the loan most expensive to pay back? Please do not guess please say if you do not know. Single choice, Base: All 2011 (11,718) % Over one third of respondents (37%) correctly identified the loan duration (36 months) that would make the loan most expensive to pay back. Older students were more likely to answer correctly, with 49% of year-olds selecting the correct option, compared with 30% of year-olds. Those in socio-economic group AB also had more success in identifying the most expensive loan duration, with 41% answering correctly, compared with 36% of both groups C and DE. Girls had less certainty around this issue and were more likely to answer that they did not know (51% of girls, compared with 37% of boys), whereas boys were more likely to select all of the options, perhaps supporting findings that boys are more confident General attitudes towards debt This section details the extent to which young people have concerns about future debt, and the amount of debt that they think they may find themselves in later in life. Young people s expectations relating to their potential future debt were seen to vary. One third (35%) of young people thought that they may get into debt in the future, compared with just one quarter (24%) who claimed that they did not think they would, with 37% saying they were unsure. Encouragingly, only 3% claimed that they did not know what debt was. RBS MoneySense Research Panel Report

51 Responses in the qualitative interviews also suggested that young people were realistic about the idea of getting into debt at some stage in their lives: It s natural for people. It s going to come up. People expect to get into debt some time in their lives. [Nathan, 13, Manchester, England] Many young people also appeared very aware of the dangerous consequences of getting into debt: You ve ran out of money and you ve taken loans, then you add so much on every year, if you took out 1000, it might be about 2000 the next year, you won t be able to pay that back so eventually stuff would be taken from your house because you can t pay the money back. [Lewis, 13, Falkirk, Scotland] Young people who understood the term debt were asked to indicate using a pre-coded list what they felt would be classed as debt. Their responses are shown in Figure (a) below. Figure (a) Which of the following would you consider as debt? Single choice. Base: All young people who knew what debt was, 2011 (11,326) Nearly three quarters (73%) of young people considered owing money to a credit card company to be a form of debt this was the most commonly chosen example of debt. The next most selected option was a loan from a bank, which nearly six in ten (59%) young people identified, followed by using an overdraft (52%), student loan (50%) and a mortgage (46%). Owing money to a friend or member of their family (both 34%) were the least selected options, perhaps because of their informal nature. RBS MoneySense Research Panel Report

52 Older pupils were more likely to define debt more broadly: year-olds were more likely to agree that all of the listed options were a form of debt, and year-olds were more likely to claim that none could be classified as debt, or that they did not know. There were also some differences between boys and girls with regard to how they classified debt: boys were more likely than girls to deem informal lending arrangements between friends or family members as a form of debt, whereas girls were more likely than boys to see owing money to a credit card company (76% compared with 71% of boys) or using an overdraft on their bank account (55% compared with 50% of boys) as forms of debt. Socio-economic status also had some bearing on young people s perceptions of debt: those in group AB were more likely to select all forms of debt (except using an overdraft on their bank account) as a form of debt. Those in group DE were more likely than those in other groups to say they did not know. In the qualitative interviews there was evidence of some awareness that debt can take a number of forms: I think debt can vary. I can be anything. It could be owing someone 50 pence or owing someone 50,000. [Alison, 12, London, England] The young people were asked to identify the amount of debt that they thought they might have at 25 years old. Three out of five respondents (62%) were unsure, with a further 14% claiming that they did not think they would have any debt. Girls were more likely than boys to be unsure (68% compared with 57%), while boys were more likely to think that they would not have any (17% compared with 11%). Older pupils and students had slightly clearer expectations of their future debt. One third (32%) of those aged 16 to 19 were able to provide a figure, compared with less than one fifth (18%) of year-olds. According to recent statistics, three in ten young people in the UK aged do not have any debt, but the same proportion have debts of over 10,000. One in ten young people have debts of between 1,000 and 10,000. Of respondents aged 16 17, 85% did not have any debts, while only 26% of the group and 19% of the group were debt free. 12 The mean amount of debt that respondents expected to have was a relatively modest 19,458. This amount may reflect the fact that less than half of young people viewed a student loan or mortgage as a debt (see Figure (a)). The 12 Young People and Savings, Institute for Public Policy Research (2012). Available at 0.pdf RBS MoneySense Research Panel Report

53 median (middle value) amount of debt expected by age 25 was 3,000, with the responses varying to a very large extent (from 0.01 to 1,000,000). The lowest mean estimated debt was given by younger girls (aged 12 to 15), at 10,991; while the highest estimated debt was given by older boys (aged 16 to 19) at 26,161. According to recent figures, the average amount owed per UK adult (including mortgages) in January 2012 was 29,634. The average household debt including mortgages was 55,988, and the average household debt excluding mortgages was 7, To ascertain the young people s attitudes to different levels of debt, they were asked to select from a list of amounts what they thought constituted a lot of debt. Figure (b) shows the findings. Figure (b) Which of these amounts is a lot of debt to get into? Multiple response, Base: All young people who knew what debt was, 2011 (11,326) Young people s perceptions of what could be classified as a lot of debt varied, but the threshold at which the majority (60%) felt an amount could be classified as such fell at 5,000. All respondents deemed more than 50,000 to be a lot of debt to get into, and over seven in ten (73%) felt that 10,000 could also be classified in this way. Some gender and age differences were evident with regard to debt perception: boys were more likely than girls to perceive lower amounts ( 10 and 50) as a 13 UK Debt Statistics, Credit Action. Available at RBS MoneySense Research Panel Report

54 lot of debt, while older pupils (aged 16 to 19) were more likely than their younger counterparts to identify larger debt amounts (between 5,000 and 50,000). Some difference could also be seen across socio-economic groups: those in groups AB and C were more likely to see 50,000 as a lot of debt. Those in groups DE were more likely to see 1,000 in this way. Young people were then asked if they worried about getting into a lot of debt in the future. Figure (c) shows the results. Figure (c) Do you worry about getting into a lot of debt in the future? Single response. Base: All who know what debt is, 2011 (11,326) Nearly seven in ten (68%) young people worried about getting into a lot of debt in the future. This concern was higher among girls than boys (72% compared with 64%), and among year-olds (73% compared with 65% of year-olds). In order to understand young people s feelings about different types of debt, they were asked to select which forms of debt would concern them the most. The results are shown in Figure (d). RBS MoneySense Research Panel Report

55 Figure (d) What forms of debt would concern you most? Single response. Base: Those who claim to worry about debt, 2011 (7,465) Among those young people who claimed to worry about debt, credit card debt was their greatest concern, with around a third (34%) selecting it, closely followed by a loan from a bank (31%). Around one fifth (19%) of young people felt a student loan would be of most concern. Girls were more likely than boys to class credit card debt or a student loan as most worrying, while boys were more likely than girls to choose a loan from a bank or a loan from a friend. Older students (aged 16 to 19) were also more likely than younger students (aged 12 to 15) to consider a credit card loan or a student loan as the most worrying form of debt. Young people who understood the concept of debt were asked to read five statements and to indicate which one most closely described their own feelings about it. The results are shown in Figure (e). RBS MoneySense Research Panel Report

56 Figure (e) Which of the following statements best describes how you feel about debt? Single response. Base: All who know what debt is, 2011 (11,326) There was a varied response to this question. Around two fifths (41%) of young people said they would not like to get into any debt, and one fifth agreed that getting into debt was to be expected but that they would try not to get into too much. Both of these answers were more likely to be selected by girls than boys and by older students (aged 16 to 19). Only 2% of young people felt that it did not matter if they got into debt because they would pay it off eventually, though this was higher among boys than girls. Boys were also more likely to respond that having debt was OK as long as they paid some of it back regularly Attitudes towards debt within higher education This section explores young people s expectations of university-related debts and their attitudes towards these. All young people were asked to indicate the qualifications that they thought they would achieve during their education. Almost three fifths (56%) thought they would achieve a higher education qualification (degree, HNC or HND, master s degree, or PhD) with two thirds expecting to achieve A levels (64%). There were differences in the qualifications boys and girls thought they would achieve. While boys were more likely to think they would achieve BTECs, apprenticeships and HNCs or HNDs, as well as master s degrees or PhDs, girls were more likely to expect to achieve GCSEs or Standard Grades, A levels and degrees. The biggest difference in expectations between the genders was the RBS MoneySense Research Panel Report

57 proportion of boys or girls who expected to achieve university degrees, with almost three fifths of girls expecting to do this (58%), compared with just half of boys (49%). Young people in socio-economic group AB appeared more optimistic about their future academic achievements. They were more likely than other socioeconomic groups to think they would achieve GCSEs or Standard Grades, A levels, degrees, master s degrees, and PhDs. Those in socio-economic groups C or DE were more likely than those in group AB to think that they would achieve BTEC or Nationals qualifications. One out of ten young people (10%) were unsure which future qualifications they might achieve, with younger pupils the most likely to be unsure (13%). In order to further explore young people s perceived levels of future debt, those who thought they would enter higher education were asked to consider the total amount they thought they might owe when they had finished university. The findings are displayed in Figure (a). RBS MoneySense Research Panel Report

58 Figure (a) If you plan to go on to university, approximately how much money do you think you might owe, including fees, when you finish university? Single response. Base: All pupils who plan on going into higher education, 2011 (6,030) Nearly one fifth of young people (17%) who planned to go into higher education were unsure as to what their total university debt might be by the time they left. Around one third (33%) of young people felt their total debt would be between 0 and 20,000, and one fifth (20%) thought it would be between 30,000 and 50,000. Only around one sixth of young people (16%) estimated that their total debt would be between 20,000 and 30,000, which is closer to reality: average predicted debt on leaving university for UK students is 26,100 for those starting in 2011, and for 2012 entrants this rises to 53, One in ten thought that their total debt would be over 50,000. Younger pupils (aged 12 to 15) were more likely to have a more optimistic view, being more likely than older pupils (aged 16 to 19) to estimate their total higher education debt as being between 0 to 15,000, while older pupils were more likely to estimate their future debt to be between 20,000 and 100, Push National Student Debt Survey Available at push.co.uk/debt-survey Headlines RBS MoneySense Research Panel Report

59 Girls were significantly more likely than boys to think they will owe between 50,001 and 100,000, or to select unsure as a response option. Boys, on the other hand, generally tended to be more optimistic than girls and were more likely to think they would owe nothing, or over 30,000. Young people were also more optimistic: 12 to 15 year olds were more likely to estimate having no debt, not knowing, or owing up to 15,000, while yearolds were more likely to estimate their future higher education debt to be between 20,000 and 100,000. Young people who expected to accrue some form of debt during their time at university were asked when they thought they would start to pay off this debt. The findings are shown in Figure (b). Figure (b) When do you expect to start paying this money back? Single response. Base: All pupils who plan to undertake a university degree, HNC/HND, master s or PhD and think they will owe money after university, 2011 (5,820) RBS MoneySense Research Panel Report

60 Young people were optimistic about when they could expect to start repaying their debts: nearly one quarter (24%) thought they would start doing this as soon as they left university, while nearly a fifth (19%) expected to be able to do this while they were still studying. Slightly fewer (16%) said they had not thought about it, and nearly one in ten (9%) were unsure. Only 3% of young people stated that they would start paying their debt off when they earned over 15,000, which is around the current threshold for repaying student loans ( 15,795). Girls and younger students (aged 12 to 15) were more likely to be unsure about when they would begin to repay loans, while older students (aged 16 to 19) were more likely to believe that they would begin to repay their student loans as soon as they left university. Older students were also more likely than their younger counterparts to say that they were waiting until they were earning over a certain amount, or earning enough money to begin repayments Summary Borrowing considerations Young people demonstrated a good degree of knowledge with regard to borrowing money: over eight in ten (83%) felt it was important to consider how much money they could afford to pay back when applying for a loan. Despite this, only one third (37%) were able to correctly identify the loan duration that would make the loan most expensive to pay back. There was also a degree of confusion around what constitutes debt: under half (46%) saw a mortgage as debt and exactly half classified a student loan as such. General attitudes towards debt Expectations relating to future debt varied among young people: nearly four in ten (37%) were unsure as to whether they felt themselves likely to get into debt in the future, while slightly fewer (35%) said they thought they might, and one quarter (24%) did not think they would. On average, young people estimated the amount of debt they were likely to have by age 25 as 19,458. When asked how much they perceived to be a lot of debt, three in five (60%) saw 5,000 as a lot of debt to get into, and just over two fifths (43%) saw 1,000 as a lot of debt. Nearly seven in ten (68%) young people worried about getting into a lot of debt in the future. This concern was higher among girls than boys, and higher among year-olds. Around two fifths of young people said they would not like to get into any debt, and one fifth agreed that getting into debt was to be expected but that they would try not to get into too much. The types of debt that concerned young people the most were credit card debt (34%), and a loan from a bank (31%). Attitudes towards debt within higher education Nearly six out of ten (56%) young people expected to obtain a higher education qualification, and almost half of these (47%) expected to owe over 20,000 by the time they had finished their studies. RBS MoneySense Research Panel Report

61 Just under one fifth (19%) of young people expected to start repaying this debt back while they were still at university, and nearly a quarter (24%) thought they would begin repayments as soon as they left university. RBS MoneySense Research Panel Report

62 5.5 Learning about money This section explores young people s perceptions of what they have learnt about money, and where from, as well as who they would like to receive this information from. Young people were asked whether they knew more, the same or less about managing their money than a year ago. The findings are shown in Figure 5.5 (a). Figure 5.5 (a) Do you think you know more, the same or less about managing money than a year ago? Single response. Base: All, 2011 (11,718) Around two thirds (66%) of young people surveyed felt that they knew more now about managing their money than they did a year ago. Just over two in ten (22%) felt that they knew the same, and just 2% felt they knew less. Boys were more likely than girls to say that they knew more this year than last (68% compared with 65%), as were older pupils and students (69% compared with 65%) and those in socio-economic group AB (69% compared with 66% of C and 64% of DE). Young people were then asked whether they had learnt about money management at home or at school within the past year. The results are shown in Figure 5.5 (b). RBS MoneySense Research Panel Report

63 Figure 5.5 (b) In the last year, have you learnt about how to manage your money at school or from someone at home? Single response. Base: All, 2011 (11,718) In total, over four in ten (47%) young people reported having learnt about managing money at school, while around two thirds (68%) said they had learnt at home. Just under one fifth (18%) said they had not learnt about managing their money in either setting. Younger pupils (aged 12 to 15) were more likely than their older counterparts (aged 16 to 19) to say they had learnt about money management (83% compared with 79%) and they were also more likely to say that they had learnt something in school (48% compared with 43%). Young people were then asked whether they had learnt about money management from any other sources within the past year. The results are shown in Figure 5.5 (c). RBS MoneySense Research Panel Report

64 Figure 5.5 (c) In the last year, have you learnt about how to manage your money from any of these other sources? Single response. Base: All, 2011 (11,718) The most popular source of guidance around money management outside of the home or school was family members who don t live at home (36%). Just over a fifth of young people (22%) cited friends as another source, and 16% mentioned TV or radio. Nearly two fifths (38%) claimed that they did not learn about money management from any other source. Older pupils and students were slightly more likely to say that they had learnt from their friends, with 23% of year-olds citing this source compared with 21% of year-olds. Younger pupils, on the other hand, were more likely to name family members not living at home as providing money management guidance, with 38% of year-olds giving this answer compared with 33% of year-olds. Young people were asked whether they felt they should have more, fewer, or the same amount of lessons about money management in school. The results are shown in Figure 5.5 (d). RBS MoneySense Research Panel Report

65 Figure 5.5 (d) Think about the number of lessons in school you have had on how to manage your money over the last year. Do you think you should have more of them, less of them, or the same amount of lessons like these? Single response. Base: All, 2011 (11,718) Nearly two fifths of young people (39%) felt that they should have more lessons on money management at school, just under half (48%) favoured no change and only 13% thought they should have fewer money management lessons. Older students were more likely to say that they wanted to receive more money management lessons, with 42% of year-olds answering in this way compared with 37% of year-olds. Those in socio-economic group AB were also more likely to say they wanted more lessons on the topic (45% compared with 40% of C and 35% of DE). Young people were asked who they felt was the best person or people to teach them about managing their money. The results are shown in Figure 5.5 (e). Figure 5.5 (e) Who is the best person/people to teach you about managing your money? Multiple response. Base: All, 2011 (11,718) RBS MoneySense Research Panel Report

66 Around seven in ten (71%) young people felt that the best people to teach them about managing their money were their parents. This was particularly true among girls (75% compared with 68% of boys) and younger pupils (72% of year-olds, compared with 70% of year-olds). Boys (51% compared with 49% of girls) and older pupils and students (57% of year-olds, compared with 45% of year-olds) were more likely to say that financial experts were best placed to teach them about managing their money. In the qualitative interviews, young people talked about wanting to hear from anyone with relevant experience: Banks, because they obviously specialise in money. They could give us tips on how to save money, and tell us about the different accounts that they have, the saving accounts and the debit accounts. They could tell us, if we put money in their account, how much interest they would pay us, before we put the money in there. [Dominic, 17, Cardiff, Wales] Just anyone with experience, like your parents. As long as you live with them then they ll help you out, then I think they re great for this kind of thing. [Hamza, 18, Cardiff, Wales] Young people were then asked how important they felt it was to learn about managing their money. The results are shown in Figure 5.5 (f). Figure 5.5 (f) How important is it for you to learn about managing your money? Single response. Base: All, 2011 (11,718) Nine out of ten young people felt that it was important to learn about managing their money. Boys were slightly more likely than girls to rate it as very important (60% of boys rated it as very important, compared with 58% of girls). Older pupils and students were also more likely to see it as a very important subject to RBS MoneySense Research Panel Report

67 learn, with 61% of year-olds answering in this way, compared with 58% of year-olds. Young people in the qualitative interviews agreed that it was important to learn about managing their money: I think it s important, because if you don t know about money, the future is unsure. You might end up spending it all. [Kahiem, 13, Manchester, England] People who struggle with money and are worried about future can go onto a website to find about it and about what to do when they re older. They ll probably start thinking that it s easy and not as bad as it sounds. [Nathan, 13, Manchester, England] Summary Roughly two thirds of young people (66%) felt that they knew more now about money management than they did a year ago. The vast majority of young people (82%) said they had learnt something on this topic in the last year, with just under half (47%) claiming to have learnt in school and around a third (35%) saying they had learnt at home. Other sources of information on money management included family members who do not live at home (36%) and friends (22%). Most young people wanted to have either more (39%) or the same amount (48%) of lessons on money management at school. This can be explained partially by the perceived importance of the information, demonstrated by 90% of young people saying that it is important to learn about managing money. With regard to who young people think should be delivering this information, over seven in ten (71%) thought it should be their parents and 50% thought it should be financial experts. RBS MoneySense Research Panel Report

68 5.6 Financial aspirations This section details the findings relating to salary expectations and the perceived life stage for key purchases. Young people were asked how much money they expected to earn when they had just finished their education, by age 25, and by age 35. Around six in ten were unable to estimate earnings at either age, with girls and younger pupils more likely to say they did not know than boys and older students. Figure 5.6 (a) shows the average amounts for those who could provide an estimate at each life stage. Figure 5.6 (a) How much money, per year, do you expect to earn at the following ages? Average (mean) responses. Bases: All those who responded to each life stage, excluding outliers, 2011 When you have just finished your education (Base: 4,002) Aged 25 (Base: 4,200) Aged 35 (Base: 4,098) Mean per annum (to nearest 100) Median per annum (to nearest ,400 10,000 29,400 23,500 56,500 35,000 On average, young people expected to earn 13,400 when they finished their education, 29,400 at age 25, and 56,500 at age 35. When compared to the median average salaries in the UK, it is clear that young people have unrealistic expectations of their salary increases as their careers progress. The median annual earnings for all jobs is 8,345 for those aged 18 21, 18,242 for those aged 22 29, and 24,416 for those aged As was observed in 2010, given that more than half of young people (56%) said they expected to achieve a higher education qualification, the expected average salary upon finishing their education is somewhat conservative when compared to their expected earnings a few years later at 25. Again, this may be related to the perceived lack of job prospects for recent graduates. As in previous years, findings from the qualitative research suggested that young people had a relatively optimistic outlook of how much they could expect to earn as they got older. 15 Source: Annual Survey of Hours and Earnings, Office for National Statistics, RBS MoneySense Research Panel Report

69 As a footballer, I d probably earn more than 1 million a year. For a week, you get paid, like, thousands. Obviously, in a year, you ll get paid more than 1 million. [Qudus, 13, Manchester, England] Boys expectations of future salary were considerably higher than their female counterparts, and this disparity became more pronounced as they got older. Upon leaving education, boys anticipated earning around 3,500 more than girls, and at age 25 the difference rose to around 6,600. At age 35 the difference in anticipated earnings was 7,800. More boys (19%) expected to earn 20,000 or more upon leaving education than girls (14%); the gap widened at age 25, with around a quarter (26%) of boys expecting to earn more than 30,000, compared with 17% of girls. At age 35, the percentage of boys expecting to earn more than 30,000 rose to 64%, while only just under half (49%) of girls expected to be earning this much. Girls were also less willing to give specific estimates, being more likely than boys to say that they did not know how much they expected to earn at all ages, as were those in socio-economic groups C and DE (compared to AB). With regard to mean estimates of expected salaries, an interesting pattern emerged between older and younger pupils and students: year-olds expected to earn significantly more than year-olds when they left education ( 16,100 compared with 11,700), but at age 25, younger pupils estimated earning more than their older counterparts ( 30,000 compared with 28,500). At age 35, year-olds once again gave higher estimates of anticipated earnings than year-olds, but the difference was far from great ( 57,000 compared with 56,000). When asked to indicate which careers that they aspired to, almost one in five (19%) young people did not know. Among those who did write in an answer, a very large variety in responses was seen, with 8% claiming that they would be a teacher, 6% working as a doctor or in medicine and 5% claiming that they hoped to be a lawyer. Some other responses seen included accountant (4%), armed forces (3%) or hairdresser (2%). Boys were more likely than girls to be unsure what their future career might be (20% compared with 18%). A large number of differences could also be seen in the types of jobs that boys and girls aspired to. Some examples of these included boys being more likely to think that they would be a business professional (5% compared with 4%), would enter accountancy (4% compared with 3%) or would go into engineering (7% compared with 1%), while girls were more likely to want to be a teacher (12% compared with 5%), doctor or medical practitioner (7% compared with 4%) or a lawyer (7% compared with 4%). Boys also appeared more likely to want to enter the emergency services (e.g. as a police officer or firefighter) while girls were more likely to say that they wanted to enter a career in the beauty industry. RBS MoneySense Research Panel Report

70 A large number of differences in career aspirations could also be seen by socioeconomic group. Examples of this included the fact that young people from socio-economic groups C and DE were more likely to be unsure what their career might be in the future (20% of DE, 19% of C and 16% of AB) while those in groups AB were more likely to want to be a doctor or medical practitioner, a lawyer, or to want to go into engineering. Those in group DE were the most likely to want to go into programming or web design, working with young people, or working as a welfare professional. In terms of differences by age, younger pupils appeared more likely to have broader and perhaps more idealistic expectations, as they were more likely to hope that they would be an actor, entertainer or presenter (4% compared with 3%), or a sports player (5% compared with 1%), than those aged 16 to 19. As with differences by gender and socio-economic group, a very large number of differences were seen for this question. However, it is interesting to note that there was no significant difference in the proportion of those aged and who did not know what their future career might be (19% compared with 18%). Young people were then asked to indicate the age at which they would leave home, buy a car and buy a house. Figure 5.6 (b) shows the findings. RBS MoneySense Research Panel Report

71 Figure 5.6 (b) At what age do you expect to do each of the following: leave home, buy a house, buy a car? Single responses to each. Base: All, 2011 (11,718) Young people once again showed some optimism with regard to when they anticipated leaving home and making large purchases. Nearly three quarters (68%) of young people thought they would have bought a car by the time they were 21. (Boys were more likely than girls to think that they would have done this by age 18.) This appears fairly realistic as according to some recent research the average age for young people in the UK to buy their first car is Around two thirds (67%) of young people thought they would have left home by age 21 (this was higher among girls: 70% estimated moving out by this age, compared with 63% of boys), and the majority (55%) of young people anticipated 16 'Getting onto the road costs young drivers 4,459', The Co-operative Group. Available at RBS MoneySense Research Panel Report

72 buying a house by age 25. According to industry figures this could be quite optimistic: a report released in 2009 indicated that 24% of men and 12% of women aged between 25 and 29 in the UK were still living at home, 17 and in 2011 the average age of first-time buyers ranged from 25 to 34 (dependent on region). 18 Nearly seven in ten young people (68%) thought they would have a family by age 30, which when compared to the mean age of mothers in England and Wales in 2010 (27.8) 19 is reasonably accurate. With regard to their anticipated retirement age, young people were fairly accurate in their estimates: 44% of thought they would retire between 66 and 70, though a fifth (20%) felt that they would retire between the ages of 41 and 65. According to data from the Office for National Statistics, the average age at which people in the UK leave the labour market (a proxy for average age of retirement) is now 64.6 for men, and 62.3 for women. 20 As a general observation, girls felt they would leave home at an earlier age than boys, boys thought they would buy a car at an earlier age, girls were more likely to indicate having a family before 30 (and boys over 30). Those in socioeconomic group AB were more likely to anticipate leaving home at a younger age and were also more likely than all other groups to indicate that they would wait until they were over 30 to have a family. Young people were then asked if they thought they would own their own business in the future. The results are shown in Figure 5.6 (c). Figure 5.6 (c) Do you expect to own your own business in the future? Single response. Base: All, 2011 (11,718) 17 Social Trends, No. 39, 2009 Edition, Office for National Statistics. Available at 18 The North offers the best chance for young buyers to get on the housing ladder, Halifax. Available at 19 Live births in England and Wales by characteristics of mother 2010, Office for National Statistics. Available at 20 Pension Trends, Chapter 4: The labour market and retirement (2012 edition). Office for National Statistics. Available at RBS MoneySense Research Panel Report

73 % Around three in ten (31%) young people anticipated owning their own business in the future, just over a third (37%) did not, and just under a third (32%) said they were unsure. This is a considerably higher figure than the proportion of the working population who are currently self-employed (13%). 21 Boys and younger pupils were more likely than girls to expect to own their own business in the future: 32% of boys had this expectation, compared with 29% of girls. 33% of year-olds thought they would own their own business, compared with 26% of year-olds. Those in socio-economic group DE were also more likely than those in groups AB and C to have this expectation. Young people who thought they would own their own business in the future were asked what industry they thought it would be focused on. Figure 5.6 (d) shows the results. Figure 5.6 (d) What industry do you expect your business will be focused on? Single response. Base: All who expect to own their own business, 2011 (3,690) 21 Source: Labour Market Statistics, December Office for National Statistics. RBS MoneySense Research Panel Report

74 The most popular response among young people when asked which industry they anticipated their business to be in was other, with just over a sixth (16%) choosing this option. Nearly one in ten young people (9%) anticipated their business to be in the world of finance or sports and leisure, though the same proportion said they did not know which industry it would be in. These results suggest that young people have an idea that they would like to work for themselves, without having a strong vision of what they would actually do. Boys were more likely than girls to select the following industries: sport and leisure, finance, engineering, design and technology, automotive, and utilities; while girls were more likely to anticipate their business focusing on health, hair and beauty, fashion, or education. Young people were then asked to indicate how much they thought people in various careers earned, on average. Figure 5.6 (e) shows their responses, as well as an indication of the actual salary earned by workers in these jobs. Figure 5.6 (e) How much do you think people in the following careers earn, on average? Open numeric response for each, Base: All 2011 (11,718) Actual salaries based on UK salaries (mean averages) Sources: Annual Survey of Hours and Earnings, Office for National Statistics, 2011; and britishathletes.org RBS MoneySense Research Panel Report

75 Young people tended to overestimate the salaries of footballers, X Factor winners, Olympians, lawyers, accountants, computer programmers, firefighters bank tellers, hairdressers and waitresses, while they underestimated salaries of bus drivers. They seemed fairly accurate with their estimates of both doctors and teachers salaries. Young people felt (accurately) that footballers earned the most amount of money, with a mean estimate of 3.7m (median 900k), and that bus drivers earned the least, with a mean estimated salary of 15,500. Actual salaries come from a variety of sources. 23 Once again, boys demonstrated more confidence in their financial knowledge, with fewer boys answering they did not know across all categories. They were also more likely to give higher estimates for salaries in the following professions: footballers, bus drivers, X Factor winners, and waiters and waitresses. Older 23 Sources: Annual Survey of Hours and Earnings, Office for National Statistics, 2011; and britishathletes.org RBS MoneySense Research Panel Report

76 pupils and students were more likely to be more generous in their estimates for non-glamorous jobs such as doctor, hairdresser, teacher, bus driver, and waiter or waitress. Many young people in the qualitative research indicated that they were planning their careers around their desire to earn a good salary: I m quite interested in chemistry and I just want to be a doctor because I knew they got paid well. [Nimrah, 13, Falkirk, Scotland] I m pretty interested in percentages. I was hoping to be an accountant or a bank person. If not, then I ll try to be a police officer, because I ve wanted to do that my whole life. My mum said accountants earn a lot, so I d say it s about 100,000. [Callum, 13, London, England] I think, for me, it would be the financial incentive that would be more important than job satisfaction, because at the end of the day you want to survive, which is more important than having job satisfaction. Financial incentive would have a higher weight than job satisfaction. [Moazzem, 17, Cardiff, Wales] Finally, young people were asked what financial products they were likely to need in the future. The results are shown in Figure 5.6 (f). RBS MoneySense Research Panel Report

77 Figure 5.6 (f) Which of the following do you think you will need in your future? Multiple response. Base: All, 2011 (11,718) Over eight in ten (84%) young people felt that they would need a bank account in the future, and slightly fewer (80%) thought they would need savings, or insurance (79%). Only just over a quarter (29%) felt they would need a loan of any kind, and around a sixth (16%) thought they would need an overdraft. Girls were more likely than boys to expect to need all of the financial products, except a credit card, loan or overdraft. Those aged were also significantly more likely to anticipate needing all of the above, except credit cards, compared with year-olds. With regard to difference between socio-economic groups, those in group AB indicated that they were more likely to need all products than all other groups (except savings where the difference was only significant compared with group DE). Those in socio-economic group C were in turn more likely to anticipate needing all products than those in group DE. Those in groups C and DE were more likely to answer that they would need none of these compared with group AB (AB: 2%, C: 4%, DE: 4%) Summary Around six in ten young people were unable to imagine what their future salaries would be at certain ages, and those who provided a figure tended to have high expectations for when they are 25 ( 29,400) and 35 years old ( 56,500). Boys had particularly high salary expectations, and older pupils expected to earn more RBS MoneySense Research Panel Report

78 than younger pupils when they left education and at age 35, while the inverse was true at age 25. Many young people were unrealistic about when they would be able to afford to make large purchases and leave home. Many expected to be able to afford to leave home by 21, buy their own home by 25 and buy a car by 21. Almost one in five young people did not know what future career they wanted to have. Boys were more likely than girls to be unsure of their future career, as were those in socio-economic groups C and DE. Just under a third of young people hoped to own their own business in the future. The most popular category for what industry this would be in was other, with 16% young people answering in this way. Young people tended to overestimate the salaries for most professions, most markedly glamorous professions such as footballers, X Factor winners, and gold medal Olympians; though estimates of doctors and teachers salaries were relatively accurate. Boys were more confident than girls in their estimates. Most young people felt that they were likely to need financial products in the future, though only three in ten felt they would need a loan, and 16% felt they would need an overdraft. The most commonly selected products that young people felt they would need were a bank account, savings, and insurance. Around six in ten thought they would need a mortgage. RBS MoneySense Research Panel Report

79 5.7 Northern Ireland This section explores the findings among the 953 young people aged surveyed in Northern Ireland. Data has been weighted by socio-economic group, gender and year group to support analysis which is proportionally representative Current financial situation Firstly, young people were asked where they had received money from in the past month. Figure shows the results. Figure Thinking about all the money you have had in the last month, where (or how) did you get the money? Multiple choice. Base: All NI, (953) When asked where they received money from in the previous month, 84% claimed to have received money from an adult at home, either as pocket money (56%) or less formally (68%). More than a third (37%) received money from another family member, almost half (47%) earned their own money and a quarter (26%) received money from a birthday or other celebration event. Around one out of six young people received EMA (15%) or borrowed money (16%), and 8% sold things to make money. RBS MoneySense Research Panel Report

80 Boys were more likely than girls to have sold items to make money (12% compared with 4%), while girls were more likely to have been given money by a family member outside of their home (43% compared with 32%). Younger groups were more likely than older groups to receive money from their parents (89% of year-olds, compared with 76% of year-olds), or to get paid for doing chores at home (35% of year-olds compared with 23% of year-olds). Older groups were more likely than younger groups to have earned some money in the previous month (43% of year-olds, compared with 53% of year-olds) and to have had a part-time job (8% of year-olds, compared with 28% of year-olds). While two thirds of young people (66%) had a bank account, year-olds were considerably more likely to have one than year-olds (87% compared with 52%). Those from more affluent backgrounds were also more likely to have a bank account (75% of social group AB, compared with 65% in C and 63% in DE). The qualitative research showed that some young people used a credit union rather than a bank: [I save at a credit union because] you can t take it out unless you need it. [Shannon, 15, Derrylin] Young people were then asked how they received the money they were given in the previous month. The majority (89%) received that money in cash, a third (36%) received it into their bank account, while a quarter (25%) received credit for their mobile phone and 8% had their mobile phone bill paid for them. Girls were more likely than boys to receive money into their bank account, and to receive mobile phone credit or have their mobile phone bill paid for them. Younger groups were slightly more likely than older groups to receive cash or mobile phone credit, while older groups were considerably more likely to receive money into their bank account (62% of year-olds, compared with 18% of year-olds), and slightly more likely to have their mobile phone bill paid. On average (mean), young people had an income of 87 per month ( 55 median). Most of that money came from their parents ( 33), from a job ( 22) or from another place ( 18). Smaller amounts were received each month, on average, from grandparents ( 7), from household chores ( 4) or from selling things ( 3). Those aged received an average of 58 per month, while those aged received considerably more ( 130). Older groups received more money each month than younger groups from a job and from another place, which may have RBS MoneySense Research Panel Report

81 included EMA, while younger groups received slightly more from grandparents and for doing household chores. Each month, young people tended to receive most of their money in cash ( 48) or into their bank account ( 32). While the average amount received in cash was similar for older and younger groups, the amount received into a bank account was very different; yearolds received an average of 4 per month into their account, while yearolds received Attitudes towards their financial situation Figure shows young people s level of agreement with four statements about their money. Figure Please say how much you agree or disagree with these statements about you. Single choice for each. Base: All NI, (953) Having their own money was important to 87% of young people, with those aged feeling more strongly than those aged (89% compared with 85%). Almost half (47%) agreed that they always had enough money (50% of year-olds, compared with 42% of year-olds; and 42% of boys, compared with 52% of girls). However, almost six out of ten (58%) felt that their money always goes too quickly, particularly girls (63%) compared with boys (54%), and those in social group DE (65%) compared with AB (53%) and C (56%). RBS MoneySense Research Panel Report

82 Just a third (32%) agreed with the statement money worries me. Those aged were more worried than those aged (42% compared with 25%). Young people were worried about avoiding debt (53%), wanting a nice lifestyle (50%), finding employment (46%), paying for university (45%) and having enough money for their future (43%). Some also worried about the possibility of having to support their family (34%). One of the boys in the qualitative research described why he sometimes worried about money: Say your friends are going out and buying stuff and then you don t have enough money for it and you re left out, it s disappointing. [Darren, 15, Derrylin] A third of young people (34%) also felt that they needed more money to be happy, and boys were more likely than girls to feel this way (38% compared with 30%). Older teenagers were more likely to feel the need for more money to make them happy (29% of year-olds, compared with 42% of yearolds). Of those who felt they needed more to be happy, the mean average amount they wanted per year was 4,900 (median average 600). Many young people felt that more money would give them more independence or allow them to save for the future, including being able to pay for more themselves (66%), saving for their future (54%), saving for university (42%) or being able to move from where they grew up (19%). Some wanted more money to protect themselves from future problems, such as potential unemployment (31%) or to help their family (28%). However, some wanted a better lifestyle, nice possessions (both 44%) or to buy a car (38%). Just 5% wanted more money so they would not have to work too hard Perception of changes to their situation Young people were asked if the adults in their house were spending more, less or the same on food, utilities, activities or trips, and holidays than the previous year. Figure shows the results. RBS MoneySense Research Panel Report

83 Figure In the last year, are adults in your house spending more, less or the same money on each of the following? Single choice for each. Base: All NI, (953) Most young people felt that their families had spent the same amount or more money over the past year on utilities (31% and 50% respectively) and on food (49% and 36% respectively). However, they thought that spending on luxuries had remained the same or reduced: for activities or days out 35% spent the same and 35% spent less, and for holidays 29% spent the same and 32% spent less. Although they reported that their family had typically spent more on essentials to run their household over the past year, young people seemed to have received the same or more pocket money over the same period (27% received more, 42% received the same and 20% received less). Those aged were more likely than those aged to have received more pocket money (34% compared with 17%), while more of the older group saw a reduction (27% compared with 16% for year-olds). Girls were more likely than boys to have had a reduction in their pocket money in the past year (24% compared with 17%). Despite most young people having stable or increased pocket money, when thinking about their own finances as a whole, 42% expected to have less money to spend in a year s time and 27% expected to have the same amount. They felt the same for their parents finances, with 41% expecting their parents to have less money to spend in a year s time and 34% expecting them to have the same amount. Boys and younger groups were slightly more optimistic about their own and their parents finances in the next year. RBS MoneySense Research Panel Report

84 Young people were then asked what, if anything, they talked to their parents about relating to money. Two thirds (67%) stated that they did talk to their parents about money. They mainly talked to their parents about the cost of food and utilities (39%), what they spend money on (33%), the amount they earn (27%), spend (29%) and save (21%) and changes to the household finances (21%). Just 13% talked to their parents about the types of bank accounts or savings accounts their parents have. Girls were more likely than boys to talk to their parents about the cost of food and utilities, what they spend their money on and the type of bank accounts and savings accounts their parents have, while boys were more likely to talk about the amount their parents earned. One boy involved in the qualitative interviews explained why he was interested in knowing his parents income: [I d like to know] whether they are earning enough to pay the mortgage [so then you know] you ll save your house. [Darren, 15, Derrylin] They were asked to state which of a list of statements were true about their parents. More than half felt that the adults at home wanted to save more money or had to watch what they spend (both 55%), 47% believed that their parents spent more on their children than on themselves and just 6% felt that they had plenty of money to buy everything they wanted. Furthermore, 38% thought that their parents worried about money. Less than half claimed that their parents talked to them about saving for their future (43%) and less than a fifth talked to their parents about how much money they have (18%) Financial behaviour Budgeting In terms of keeping track of the money they spend, young people were most likely to remember what they spend in their head (54%), look in their wallet to see what they had left (44%) or use a formal method of tracking (53%). Formal methods included keeping receipts (35%), regularly checking their bank balance (21%), reading their bank statements (18%), printing mini-statements from the ATM (14%) and logging what they spend in a notebook or spreadsheet (4%). One out of ten young people relied on their parents to keep track of their money or did not track their money at all (both 10%). Girls were more likely than boys to use formal methods of tracking their money (63% compared with 44%) and older groups were more likely than younger groups (70% of year-olds, compared with 42% year-olds). Young people suggested that they were forward planning with their finances. Around seven out of ten young people (69%) claimed that they did not spend money if they thought they would need it for something else. One boy in the qualitative interviews explained how he budgeted with his lunch money: RBS MoneySense Research Panel Report

85 If you ve got your pocket money for school, you don t want to be spending it on stuff because you need it for school, for lunch. You have to budget for that. [Darren, 15, Derrylin] A third of young people (33%) claimed that if they ran out of money, they got more from someone at home. The same boy as previously mentioned explained why being able to get more money was not always sensible. The more money you have, the more you spend. If you need something you can just ask for it. I would spend it on pointless stuff. [Darren, 15, Derrylin] Saving money Three quarters of young people (76%) saved money in the previous month; 8% saved all of their money, 18% saved most of it, 20% saved half and 30% spent most and saved some. Boys were more likely than girls to have saved some money (79% compared with 73%). Those from less affluent backgrounds (social group DE) were more likely than others to have spent all of their money in the previous month (28% of DE, compared with 16% of ABs and 18% of C). When asked to provide an approximate figure for the amount they saved each month, half (51%) provided a figure, a third (32%) said that they did not save regularly and the remaining 16% were unsure. Regular savers saved an average (mean) of 37 per month ( 20 median). Boys were more likely than girls to give a figure for how much they saved, while girls were more likely to state that they did not save regularly (37% of girls, compared with 28% of boys). The amount saved on average per month increased steadily with each age group, from 20 among 12-year-olds, to 34 among 15-year-olds, up to 104 among 18-year-olds. Those aged saved twice as much, on average, as those aged ( 57 per month compared with 25). Among savers, although some saved for shorter-term purchases planned for the next week (20%), next month (26%) or next year (25%), many were saving for their future (40%) or were unsure of what they were saving for (37%). Younger groups were more likely than older groups to be saving for something in the more immediate future. The things that young people were most likely to be saving money for included clothing (55%), to be able to socialise with friends (47%), or technology items (42%). Other popular items to save for included trips or holidays (28%), university (26%) or driving lessons (25%). RBS MoneySense Research Panel Report

86 Young people tended to look after their savings themselves at home (61%) or in their bank or building society (51%). Some young people relied on their parents to look after their savings for them (15%). Girls were more likely than boys to save money in a bank or building society (56% compared with 47%). Those aged were more likely than those aged to look after their own money at home (71% compared with 48%) or to rely on an adult at home to look after it (20% compared with 8%), while year-olds were more likely than year-olds to save money in a bank or building society (77% compared with 32%). Those in the lower social groups were least likely to save money in a bank (42% of DE compared with 58% of AB and 54% of C). According to young people, their parents (84%) and grandparents (34%) were most likely to encourage them to save money. Less than one out of ten felt that their friends (8%), teachers (8%) or the media (6%) encouraged them, and 4% claimed to encourage themselves to save. However, more than one out of ten young people (13%) felt that no-one encouraged them. Figure shows young people s attitudes towards saving money. Figure Please tell us how much you agree or disagree with the following statements. Single choice for each. Base: All, NI (953) The chart shows that young people had positive attitudes towards saving. The majority agreed that it is important to save money (90%) and a similar proportion disagreed with the statement there is no point in saving (86%), although boys were slightly more likely than girls to agree. Three fifths (61%) claimed to be saving more than they used to. In practise some found saving RBS MoneySense Research Panel Report

87 difficult; less than half (43%) found it difficult to save money or felt that they were good at saving money (47%). Boys were more likely than girls to be positive about their saving habits. Boys were more likely to save more money now than they used to (69% compared with 54% of girls), to think they were good at saving (53% compared with 42%) and to disagree with the statement I find it difficult to save money (45% compared with 34%). One boy explained why saving money was important: [It s important to save for] when you have no job and you need money later. [Noel, 15, Derrylin] When asked what advice they could give to their peers about managing their money, another boy advocated starting to save when you are young: Save as much as you can because you can t rely on your parents, you need to open an account and get a job, start putting money in [ ] If you are going to buy something that will put you in debt, think if you could wait a tiny bit longer [ ] Start saving early and get a good head start. [Darren, 15, Derrylin] Spending The mean average that young people spent in the previous month was 109 ( 80 median). Most was spent on clothes or shoes ( 34), socialising ( 25), technology ( 18), or food ( 18); while a smaller amount tended to be spent on driving lessons ( 9), sports or hobbies ( 9), and music ( 2). Girls spent more than boys on clothes, socialising and driving lessons, while boys spent more than girls on technology and sports or hobbies. On average, those aged spent more than those aged ( 129 compared with 96), and in particular spent more than younger teenagers on socialising, food and driving lessons. Young people were then tested for their knowledge of credit and debit cards. Only a third (35%) were aware that PIN stands for personal identification number. However, there was fairly good awareness of how they work, with 62% correctly identifying at least three aspects, such as a number with four figures (71%), a number that should be secret (65%) or used at the cashpoint (57%). They were then asked what you should do when you receive a new credit or debit card and were given a list of options. More than half of young people knew that a new debit card should be signed (54%) or the old card cut up (58%), but just 36% knew that you should do both. Three fifths (61%) thought that you needed to call the credit card company to activate it, and half (47%) thought that you should set a new PIN number. RBS MoneySense Research Panel Report

88 Girls and older groups had a better understanding than boys and younger groups of PIN numbers and debit cards Borrowing money and attitudes towards debt Young people were asked how important it is to consider certain factors when applying for a loan. They had a good understanding overall. More than four fifths felt that it was important to think about how much they could afford to repay (86%), the amount of time they needed to repay (85%) and the amount of money they needed to borrow (84%). They were less sure about needing to consider the APR (33% did not know) and just 22% felt that it was important to borrow as much as they could. Boys were more likely than girls to consider it important to look into the APR, while girls were more likely to consider the amount of time needed to pay back the loan and how much they could afford to pay back. Older groups were more aware than younger groups of the importance of considering the amount of money needed, the amount they could afford to repay, the time needed and the APR. When asked to imagine taking out a loan at an APR of 15%, only a third of young people (33%) correctly identified the most expensive loan duration and 45% said that they did not know. Those aged were more likely than those aged to select the correct answer. Thinking about their future, only a third of young people (32%) expected to get into debt, a quarter did not (23%) and two fifths were unsure (43%). The age group were more likely than the year-olds to expect to get into debt at some point (40% compared with 26%). To put these figures into context, young people were then asked what they considered as debt. Figure shows the results. RBS MoneySense Research Panel Report

89 Figure Which of the following would you consider as debt? Multiple choice. Base: All, NI (953) Owing money to a credit card company was seen as debt by the largest proportion of young people (74%). Almost three fifths viewed a bank loan as debt (57%), while bank overdrafts (47%), student loans (43%) and mortgages (42%) were seen as debt by less than half of all young people. Owing money to a member of their family or to a friend was considered debt by just a quarter of young people (both 26%). The majority of young people (90%) expected to have debt around the age of 25, although only 18% guessed how much that would be. 10,400 was the mean average amount they expected to owe at 25. On average, those aged expected to have almost three times as much debt as those aged by the age of 25 ( 15,400 compared with 5,300). Young people were then given a list of amounts of money and were asked which they felt would be a lot of debt to get into. More than half (56%) felt that 5,000 was a lot of debt and almost three quarters (73%) thought that 10,000 was a lot of debt. Considering that young people expected to be in 10,400 of debt by the age of 25, they may have felt that they were going to get into a lot of debt in the future. Almost three quarters of young people (72%) said that they worried about getting into a lot of debt in the future, with girls more likely to be worried than boys (76% compared with 68%). RBS MoneySense Research Panel Report

90 Young people were most worried about bank loans (37%) or credit card debt (30%), followed by student loans (19%). Just 8% would worry most about an overdraft, 3% would worry about a loan from their family and 1% about a loan from a friend. Younger groups said that they would worry most about credit card debt or a bank loan, while older groups were more likely to worry about student loans and overdrafts than younger groups. A list of statements was shown to young people and they were asked which of them best described how they felt about debt. They were most likely to agree with I would not like to get into any debt (43%), followed by getting into debt is to be expected but I will try not to get into too much (18%). A sixth of young people (14%) agreed with the more anxious statement, that getting into debt could lead to bankruptcy and 12% felt that having debt is OK as long as you pay bits back regularly. One out of ten young people (11%) were unsure which statement best described their feelings about debt, while just 1% felt that it doesn t matter if you get into lots of debt because you ll pay it off yourself eventually. Two boys from the qualitative research explained why having debt would be a worry: I feel bad [about the possibility of debt] because you might not be able to pay it off. Say two people have jobs and then one person lost their job, they might not be able to pay it off. [Michael, 15, Derrylin] It s a lot of pressure, knowing that you have it [debt], especially if you have a time limit to pay it off, like 30 days. [Noel, 15, Derrylin] However, another boy from the qualitative research was more optimistic about debt: Though, you might be able to pay it back. If you know you ll be able to pay it back, it s all right to get into debt. [Darren, 15, Derrylin] Learning about money Almost all young people surveyed (91%) felt that it was important to learn about managing their money; 61% felt it was very important. Two boys in the qualitative interviews explained why they wanted to learn about money management: [It is important to learn about money so you ll know] what you definitely need, how to budget, and buy the important things instead of stuff that you don t really need. It was mostly interesting; it is always good to know about it. RBS MoneySense Research Panel Report

91 [Noel, 15, Derrylin] [It is important to learn about money so you ll know] how it works and the interest you re getting, things like that [ ] Some banks change their interest now, having higher and lower interest. [Michael, 15, Derrylin] Seven out of ten young people (70%) felt that they knew more about money management than a year ago and 21% knew the same amount. Just 2% felt that they knew less and 8% were unsure. The majority (87%) felt that they had learnt about money management at school or at home over the past year. Almost six out of ten (56%) recalled learning about money management at school. Some young people felt that they knew more about money management through family members outside of their home (38%), from friends (24%) or through the TV or radio (17%). Boys and younger groups were more likely than girls and older groups to recall receiving money management lessons at school, while those aged over 16 were more likely to state that they had not learnt about money management at school, at home or from other sources. Half of young people (51%) would be happy to receive the same number of money management lessons at school as they currently do, and two fifths (40%) wanted more. Despite the fact that young people were amenable to receiving money management lessons at school, just a quarter (26%) felt that teachers were the best people to teach them about the subject. They were more likely to want their parents (69%) or financial experts (53%) to teach them Financial aspirations Figure (a) shows what aspirations young people had about their education. RBS MoneySense Research Panel Report

92 Figure (a) What qualifications do you think you will get during your education? Multiple choice. Base: All, NI (953) Most young people (87%) expected to achieve GCSEs and A levels (78%). Almost three fifths (58%) expected to achieve a higher education qualification, and more than half (54%) expected to get a university degree. Other qualifications that fewer young people expected to achieve included Diplomas (17%), BTECs or Nationals (15%), apprenticeships (8%) or NVQs (7%). Girls were more likely than boys to expect to achieve A levels (83% compared with 74%), a university degree (61% compared with 48%), a Diploma (20% compared with 14%) or a master s degree (19% compared with 12%), while boys were more likely than girls to expect to achieve a BTEC or National qualification (19% compared with 10%). Those aged had higher aspirations than those aged 12 15; they were more likely to expect to achieve GCSEs (91% compared with 85%), A levels (92% compared with 69%), a university degree (65% compared with 47%) a master s degree (19% compared with 13%), or a BTEC or National qualification (19% compared with 12%). However, many of those year-olds could have already achieved some of those qualifications, so it is not necessarily the case that younger pupils had lower expectations of themselves. There was a considerable difference in aspirations to achieve a higher education qualification among young people from more affluent backgrounds. Those in RBS MoneySense Research Panel Report

93 social group AB were more likely to expect to achieve a university degree than C and DE (67% compared with 53% of C, and 50% of DE). Young people who expected to go to university were asked how much money they thought they would owe by the end of their course. A third (35%) expected to owe up to 15,000, around three fifths (59%) expected to owe up to 30,000 and seven out of ten (70%) thought they would owe up to 50,000, while a fifth (19%) were unsure. Girls were more likely than boys to be unsure how much they might owe, while those aged tended to expect to owe more after university than younger teens. More than a quarter of young people (27%) expected to be able to start paying back university debts while they were still studying and 18% thought they would be able to do so as soon as they finished university, while 18% had not thought about it. Younger groups were more likely than older groups to think that they would be able to repay their debts while they were still at university, while those over 16 were more likely to expect to start paying them off further down the line; when they were earning enough money, when they were 25 or when they were 30. Young people were then asked if they expected to own their own business in the future. Almost a third (30%) expected to have their own business, with year-olds more likely to aspire to this than year-olds (36% compared with 21%). The industries that they most expected to work in were sport and leisure (13%), design and technology (13%), engineering, or hair and beauty (both 10%). Boys were more likely than girls to expect to own a business based on sports, design and technology, or engineering. The average expected earnings at each life stage were: 10,900 (mean) when finishing education (median 10,000) 21,700 (mean) at the age of 25 (median 20,000) 39,600 (mean) at the age of 35 (median 30,000) However, many young people found this a difficult question to answer and only around a third provided an expected salary figure for each life stage. One boy in the qualitative interviews described what he thought would be a good salary: [A good salary would be] 18,000, then build up [ ] If you were married and both people were earning that, it would not be too bad. [Michael, 15, Derrylin] When asked about their aspirations, 12% of young people were unsure which career they aspired to in the future. No significant differences were seen in the proportion of boys and girls who were unsure. However, younger pupils were more likely to select don t know compared with pupils in the older age group. Overall, there was a large variety in the types of careers and professions that young people aspired to, with the most frequently named careers being teacher RBS MoneySense Research Panel Report

94 (12%), and medical practitioner or doctor (5%). Other choices given by young people were careers in engineering, hairdressing and law (all at 4%). Substantial differences were seen in the careers that boys and girls aspired to. Some of the careers that girls were more likely to hope for than boys included teaching (17% compared with 8%), becoming a medical practitioner or doctor (7% compared with 2%), hairdressing (8% compared with 0%) or working as a lawyer (6% compared with 2%). Some of the career choices that boys were more likely to aim for included engineering (8% compared with 1%), working in the armed forces (6% compared with 1%) or being a sports player (6% compared with 1%). Substantial differences could also be seen in the types of careers that young people aspired to at different ages. Those aged 12 to 15 were more likely to select a number of careers including hairdressing (7% compared with 1%), playing sports (5% compared with 1%) or entertainment (4% compared with 1%) while some of the careers that those aged 16 to 19 were more likely to aspire to included becoming business professionals (4% compared with 2%), working in engineering (7% compared with 3%) or joining the armed forces (6% compared with 2%). Young people were also asked what they thought the average salary was for different careers. The results are shown in Figure 5.7.7b. RBS MoneySense Research Panel Report

95 Figure 5.7.7b How much do you think people in the following careers earn, on average? Open numeric. Base: All who provided a figure, shown in brackets beside each job type, NI The chart shows that on average, footballers were perceived to earn by far the highest salary ( 4.1million), with X Factor winners ( 912,000) and gold medal Olympians ( 422,700) perceived to be the next highest earners. Professionals such as lawyers and accountants were expected to earn six-figure salaries, while hairdressers, waiters and bus drivers were expected to earn 15,000 or less. Young people were asked when they expected to be able to leave home, buy a car, buy a house, have a family and retire. Three quarters (74%) expected to be able to buy a car by the age of 21 and 90% by 25. A slightly smaller proportion expected to be able to leave home by 21 (61%), although similarly to buying a car, 90% thought they would do so by 25. Half (52%) thought that they would buy a house by the age of 25 and 85% thought this was possible by 30. More than a quarter (28%) expected to have a family by the age of 25, while three quarters (74%) expected to do so by the age of 30. A quarter (24%) expected to be able to retire by the age of 65 and 71% thought they would be able to retire by 70. Those aged had higher expectations than those year-olds of being able to afford to leave home, buy a car, buy a house and have a family at a younger age. Thinking about the type of financial products they would need in the future, around 8 out of 10 young people expected to need a bank account (84%), savings (83%) or insurance (80%), and around 6 out of 10 thought they would RBS MoneySense Research Panel Report

96 need a pension (63%), mortgage (65%), credit or debit cards (both 57%). Just a quarter (26%) anticipated needing a loan and less than one out of six (13%) thought they would need an overdraft. RBS MoneySense Research Panel Report

97 5.8 Republic of Ireland This section details the findings among the 380 young people aged surveyed in the Republic of Ireland. Data has been weighted by socio-economic group, gender and year group to support analysis which is proportionally representative Current financial situation Young people were asked where they had received money from in the past month. The results are shown in Figure Figure Thinking about all the money you have had in the last month, where (or how) did you get the money? Multiple choice. Base: All, ROI (380) The main source of income for young people was their parents; 86% received money from them in the previous month, either as pocket money (50%) or less formally (59%). Around one third (31%) received money from another family member, almost half (45%) earned their own money (mainly through chores at home or through a part-time job) and a fifth (20%) received money from a RBS MoneySense Research Panel Report

98 birthday or other celebration event. One out of ten young people borrowed money in the previous month. One boy in the qualitative interviews described where he received money from: Housework, pocket money, that s about it. [Daire, 15, Castlebar] Girls were more likely than boys to receive money from their parents as pocket money or otherwise (90% compared with 81%), or from another family member (36% compared with 26%). Conversely, boys were more likely than girls to have received money for doing chores outside of the home (15% compared with 7%), by borrowing money (16% compared with 5%) and by selling things (8% compared with 2%). Those aged were more likely than those aged to receive money from an adult at home (64% compared with 54%), from another member of their family (39% compared with 21%), to get paid for doing chores at home (35% compared with 20%) or to have received birthday money (27% compared with 11%). Older groups were more likely than younger groups to have earned their own money through a part-time job in the previous month (53% of yearolds, compared with 43% of year-olds). Less than two thirds of young people (62%) had a bank account. The qualitative research showed that some young people had a credit union account instead of a bank account because their parents had one. In terms of the forms of money received in the previous month, more than nine out of ten young people (91%) received money as cash. A quarter (24%) received credit for their mobile phone, 2% had their mobile phone bill paid for them, and less than a fifth (17%) received it into their bank account. Some young people received gift vouchers in the previous month (7%). Girls were more likely than boys to receive gift vouchers (10% compared with 4%). Younger groups, aged years, were considerably more likely than older groups, aged years, to receive mobile phone credit (33% compared with 12%) and slightly more likely to receive gift vouchers (10% compared with 4%) or to not receive any money (3% compared with 0%). On average (mean), young people received 110 per month ( 55 median). They received the most from parents ( 55), from a job ( 24) or from grandparents ( 11) and received smaller amounts each month, on average, from household chores ( 7) or from selling things ( 5). Girls, on average, received considerably more pocket money than boys ( 72 compared with 37), while boys earned more from a job ( 41 compared with 8) or by selling things ( 9 compared with 0). RBS MoneySense Research Panel Report

99 Those aged received an average of 84 per month, while those aged received considerably more ( 141). Older groups received more money each month than younger groups from their parents ( 67 compared with 44) and from a job ( 40 compared with 10). When asked how they usually received their money, the majority tended to come in the form of cash ( 73) or into their bank account ( 25), with a small amount received as mobile phone credit ( 4). While those aged received a similar amount of money in cash to those aged 12 15, they received considerably more money into their bank account each month than the younger group ( 45 compared with 7) Attitudes towards their financial situation Young people were asked about their attitudes towards money. Figure shows the results. Figure Please say how much you agree or disagree with these statements about you. Single choice for each. Base: All, ROI (380) Almost all young people expressed that having their own money was important to them (91%). Almost half (46%) agreed that they always have enough money, with girls more likely than boys to disagree (36% compared with 26%), and those aged more likely than those aged to disagree (36% compared with 25%). However, half (51%) felt that their money always goes too quickly, particularly older groups (57% of year-olds, compared with 46% of year-olds). Encouragingly, only a quarter (25%) agreed with the statement money worries me, though girls were considerably more likely to worry than boys (31% RBS MoneySense Research Panel Report

100 compared with 19%). Young people were worried about getting into debt (46%), having enough money for their future (40%), wanting a nice lifestyle (35%) or finding employment (31%). Some worried about paying for university (20%) or the possibility of having to support their family in the future (19%). A third of young people (32%) claimed that they needed more money to be happy. Of those who felt they needed more to be happy, three quarters (75%) wanted an extra 100 or less per month. Many young people felt that more money would give them more independence or allow them to save money, including being able to pay for more themselves (48%), saving for their future (41%) or saving for university (23%). Some wanted more money to deal with potential financial difficulties, such as the possibility of unemployment (16%), or to help their family (23%). However, almost half wanted more money so they could have nice possessions (48%), a better lifestyle (32%), or could buy a car (24%). Just 9% wanted more money to be able to leave where they grew up and 7% wanted more money to avoid having to work too hard. When asked if they needed more money to be happy, one boy in the qualitative interviews explained how you might feel differently at different times: Not all the time. Sometimes you can be happy without money but a lot of times you need money to be happy as well. [Daire, 15, Castlebar] Perception of changes to their situation Young people were asked if the adults in their house were spending more, less or the same on food, utilities, activities or trips, and holidays than the previous year. The results are shown in Figure RBS MoneySense Research Panel Report

101 Figure In the last year, are adults in your house spending more, less or the same money on each of the following? Single choice for each. Base: All, ROI (380) Most young people felt that their families had spent the same amount or more money over the past year on utilities (41% and 27% respectively) and on food (52% and 31% respectively). Girls were more likely than boys to believe that their families were spending more money on food (42% compared with 20%). However, young people thought that spending on luxuries had remained the same or reduced: for activities or days out, 35% spent the same and 41% spent less, and for holidays 31% spent the same and 42% spent less. Around half of the young people surveyed had received the same amount of pocket money as the previous year (47%), while more than a quarter (29%) received less and just 17% had received more. Girls were more likely to report a reduction in their pocket money (34% compared with 24% of boys). Those aged were more likely than those aged to have received more pocket money (22% compared with 12%), while the older group saw their pocket money stabilise (53% compared with 41%). When thinking about money from all sources, almost two fifths expected there to be less money for both them and for their parents to spend in a year s time (both 38%). Around a third of young people expected to have the same amount to spend (35% for them and 31% for their parents). Just a fifth expected they and their parents would have more money to spend in a year s time. Boys were more optimistic than girls about their own finances in the next year, with 25% expecting to have more money in a year s time compared with 12% of girls. Those aged were similarly optimistic, with 23% expecting to have more money to spend in a year compared with 15% of year-olds. RBS MoneySense Research Panel Report

102 Young people were then asked what, if anything, they talked about to their parents relating to money and two thirds (65%) mentioned at least one aspect. The most common aspects discussed were the cost of food and utilities (28%), what they spend money on (25%), the amount they earn (27%), the amount they spend and save (both 19%) and changes to the household finances (17%). Just 13% talked to their parents about the types of bank accounts or savings accounts their parents have. There was a considerable difference in discussions between parents and children about money dependent on their social background. Those in social group DE were less likely than those in social groups AB or C to talk to their parents about what they spend money on (11% of DEs, compared with 33% of ABs and 30% of Cs), or how much they spend (10% of DEs, compared with 29% of ABs and 21% of Cs). One boy involved in the qualitative interviews explained why he talks to his parents about the household finances: I ask [my parents] about the bills so I know for the future. [Jacob, 16, Castlebar] They were asked to state which of a list of statements were true about their parents. Almost half felt that the adults at home had to watch what they spend (47%) or wanted to save more money (44%). Around a third mentioned that they speak to their parents about saving money for their future (35%), or felt that their parents spent less on themselves than on their children (33%). Furthermore, 28% thought that their parents worried about money. It was less common for young people to talk to their parents about the amount of money they have (20%) and very few felt that their parents have plenty of money to buy everything they want (6%). Young people aged were more likely than those aged to say that their parents talk to them about saving money for their future (42% compared with 30%) Financial behaviour Budgeting When asked about how they keep track of the money they spend, young people were most likely to remember what they spend in their head (58%), look in their wallet to see what they had left (38%), or use a formal method of tracking (38%). Formal methods included regularly checking their bank balance (10%), reading their bank statements (8%), logging spending in a notebook or spreadsheet (6%), and printing mini-statements from the ATM (3%). More than a quarter of young people (28%) kept receipts from their purchases to help them ascertain how much money they had. However, 8% relied on their parents to keep track of RBS MoneySense Research Panel Report

103 their money and 11% admitted that they did not keep track of the money they spent. Boys were more likely than girls to check their bank balance regularly (17% compared with 3%) or to print a mini-statement from the ATM (6% compared with 1%), while girls were more likely than boys to use a spreadsheet or notebook to log their spending (10% compared with 3%). Older teenagers used more methods than younger teenagers for tracking their money. Those aged were more likely than those aged to remember what they had spent in their head (65% compared with 52%), check their bank balance regularly (14% compared with 7%), read their bank statement (12% compared with 4%) and print a mini-statement from the ATM (6% compared with 2%). Younger groups were more likely to rely on logging their spending in a notebook or spreadsheet (9% of year-olds, compared with 3% of year-olds). Those from more affluent backgrounds were more likely to track their money by keeping receipts for things that they bought (34% of ABs and 33% of Cs, compared with 18% of DEs). Young people were asked about the extent to which they agreed with two statements about their own budgeting. More than two thirds (68%) claimed that they did not spend money if they thought they would need it for something else, with boys being more likely to agree with this statement than girls (79% compared with 58%). However, a fairly high proportion (39%) did not seem to need to budget to any great extent, as they felt that if they ran out of money, they could just get more from someone at home. Girls were more likely than boys to agree with this statement (47% compared with 31%). Saving money Almost three quarters of young people (73%) saved money in the previous month; 5% saved all of their money, 17% saved most of it, 25% saved half and 27% spent most and saved some. Boys were more likely than girls to have saved some money in the previous month (78% compared with 68%), while girls were twice as likely as boys to have spent all of their money (30% compared with 16%) year-olds were more likely than12 15-year-olds to have spent all of their money in the previous month (30% compared with 17%). Those from less affluent backgrounds (social group DE) were less likely than those in social group AB to have saved most of their money in the previous month (12% of DEs, compared with 26% of ABs). When asked to provide an approximate figure for the amount they saved each month, half (48%) provided a figure, a third (36%) said that they did not save regularly and the remaining 16% were unsure. Regular savers saved a mean average of 46 per month ( 25 median). Girls were more likely to state that they did not save regularly (41% of girls, compared with 31% of boys). RBS MoneySense Research Panel Report

104 Many young people were saving for an unspecified goal, stating either that they were saving for their future (37%) or that they were not sure what they were saving for (35%). However, some saved for shorter-term purchases planned for the next week (15%), next month (20%) or next year (18%). Girls (42%) and younger groups (44% of year-olds) were more likely than boys (29%) and older groups (23% of year-olds) to be saving but unsure what they were going to spend the money on. Conversely, boys were more likely than girls to be saving for something in the more immediate future, either next month or within the next year. The things that young people were most likely to be saving money for included clothing (54%), to be able to socialise with friends (43%) or for technology items (40%). Other things that some young people saved for included trips or holidays (24%), sports equipment or lessons (20%), or university (15%). Around one out of ten young people saved for driving lessons or car costs (11%), music (9%), or seasonal or celebratory gifts such as Christmas presents (9%). Girls were more likely than boys to save for clothes or shoes (75% compared with 41%) or seasonal gifts (19% compared with 3%), while boys were more likely than girls to be saving for technology items (50% compared with 21%) or for sports equipment or lessons (29% compared with 4%). When asked where they save their money, young people showed that they were equally likely to look after their savings themselves at home (57%) or in their bank or building society (57%). A small proportion of young people relied on their parents to look after their savings for them (10%). Boys were more likely than girls to look after their money at home (66% compared with 47%) and the same was true for year-olds compared with year-olds (64% compared with 48%). However, year-olds were more likely than year-olds to save their money in a bank or building society (70% compared with 46%). Young people were most likely to feel encouraged to save money by their parents (81%) or their grandparents (21%). A small proportion felt encouraged to save money by their siblings (7%), friends or teachers (both 5%), the media (4%) or themselves (4%). However, more than one out of ten young people (12%) felt that no-one encouraged them. They were then asked the extent to which they agreed or disagreed with five statements about saving money. The results are shown in Figure RBS MoneySense Research Panel Report

105 Figure Please tell us how much you agree or disagree with the following statements. Single choice for each. Base: All, ROI (380) Figure shows that young people had positive attitudes towards saving. The majority agreed that it is important to save money (87%) and a similar proportion disagreed with the statement there is no point in saving (81%). More than half (56%) claimed to be saving more than they used to. In practise some found saving difficult; less than half (44%) found it difficult to save money or felt that they were good at saving money (47%). Boys tended to have more positive attitudes towards saving money than girls did. Girls were more likely than boys to disagree that it is important to save money, to disagree that they save more than they used to and to disagree that they were good at saving. Girls were also more likely than boys to agree that I find it difficult to save money and There is no point in saving money. Younger groups found that their saving behaviour had improved recently; year-olds were more likely than year-olds to agree that they were saving more than they used to (61% compared with 50%). Those from less affluent backgrounds tended to have more negative attitudes towards saving money; DEs were more likely to disagree that it is important to save money (16% compared with 2% of ABs and Cs). Those in social group DE RBS MoneySense Research Panel Report

106 were also more likely to feel that there is no point in saving money (just 63% of DEs disagreed, compared with 81% of ABs and 92% of Cs). Spending The mean average that young people spent in the previous month was 147 ( 85 median). Most of their money was spent on clothes or shoes ( 44), socialising ( 31), food ( 28) or technology items ( 23). Smaller amounts tended to be spent on sports or hobbies ( 15), driving lessons ( 6), and music ( 4). Boys typically spent more money than girls on technology ( 38 compared with 7) and sports or hobbies 23 compared with 7). Those aged were more likely than those aged to spend more than 200 per month (25% compared with16%), and they spent more on clothes ( 53 compared with 37), socialising ( 40 compared with 24) and food ( 35 compared with 21). Young people were then questioned about their knowledge of credit and debit cards. Half (49%) selected that PIN stands for personal identification number. Although few chose incorrect statements about PIN numbers, only a third (36%) were able to correctly identify at least three aspects of how they work. Young people were most likely to know that a PIN is a number with 4 figures (55%) or a number that should be secret (49%). There was lower awareness that it would be used at the cashpoint (30%) or used with a debit card (27%). There was also fairly low awareness of the tasks that should be undertaken when receiving a new debit card. Less than half of young people knew that a new debit card should be signed (43%) or the old card cut up (44%) and just a quarter (24%) knew that you should do both. Half thought that you should set a new PIN number or thought that you needed to call the card company to activate a new debit card (both 48%). A further one in ten thought that you should buy something with your new debit card or were unsure (both 10%) Borrowing money and attitudes towards debt Young people showed a good understanding of considerations when applying for a loan. More than four fifths felt that it was important to think about how much they could afford to repay (87%), the amount of time they needed to repay (84%) and the amount of money they needed to borrow (83%). However, less than two thirds of young people felt that they needed to consider the APR (63%). Just 23% felt that it was important to borrow as much money as they could. Although older groups were more likely than younger groups to be aware of some important considerations when borrowing money, such as the importance of the APR (69% of year-olds, compared with 57% of year-olds), they were more likely to want to borrow as much as they could (32% compared with 16%) and to disagree that the time taken to pay back the loan was important (10% compared with 1% of year-olds). RBS MoneySense Research Panel Report

107 When asked to imagine taking out a loan at an APR of 15%, only a third of young people (36%) correctly identified the most expensive loan duration and a third (32%) said that they did not know. Thinking about their future, less than a third of young people (31%) thought that they would get into debt, less than a third did not (30%) and more than a third (36%) were unsure. Just 4% claimed not to know what debt is. The age group were less likely than the group to know whether or not they would get into debt in the future (41% compared with 29% were unsure). To put these figures into perspective, young people were then asked what they considered as debt. Figure (a) shows the results. Figure (a) Which of the following would you consider as debt? Multiple choice. Base: All, ROI (380) Owing money to a credit card company was seen as debt by the largest proportion of young people (63%). Almost half viewed a bank loan as debt (47%) and slightly fewer (42%) felt that a mortgage should be considered as debt. Only around a third of young people considered bank overdrafts (33%) or student loans (30%) as debt. Although owing money to a friend (26%) or to a member of their family (25%) was considered to be debt by the smallest proportion of young people, these are similar figures to those who felt that overdrafts and student loans were debt. Boys were more likely than girls to consider a loan from a bank (54% compared with 41%) or a mortgage (52% compared with 31%) as debt. Older groups also had a better understanding than younger groups of debt; year-olds were more likely than year-olds to consider a bank loan (60% compared with RBS MoneySense Research Panel Report

108 36%), mortgage (54% compared with 32%), overdraft (42% compared with 26%) or student loan (43% compared with 18%) as debt. Almost nine out of ten young people (89%) expected that they might be in debt around the age of 25, although only a quarter (24%) guessed how much that would be. Girls were more unsure than boys (71% compared with 59%), while boys were more likely to think that they would have no debt at 25 (15% compared with 7%). Those aged were more likely than those aged to expect to owe nothing at the age of 25 (15% compared with 8%). One out of six young people (60%) expected to owe less than 1,000 at the age of around 25 and three quarters (78%) expected to owe less than 10,000. Although boys were more likely than girls to expect to have no debt, boys who did expect to owe money gave higher figures than girls (60% of boys suggested a figure between 1,000 and 100,000, while 81% of girls expected to owe between 51 and 999). Young people were then given a list of amounts of money and were asked which they felt would be a lot of debt to get into. Two fifths (42%) felt that 5,000 was a lot of debt, three fifths (59%) thought that 10,000 was a lot of debt, and three quarters (75%) felt the same about 50,000. Boys and older groups were more likely than girls and younger groups to select the higher amounts (up to 50,000); for example 80% of boys and 70% of girls considered 50,000 to be a lot of debt. Almost three fifths of young people (57%) worried about getting into a lot of debt in the future (14% worried a little and 44% worried a lot ). Girls were more likely to be worried than boys (64% compared with 52%) and year-olds were more likely to be worried than year-olds (62% compared with 52%). When asked what type of debt would worry them most, the highest proportion by far were concerned about bank loans (54%). A considerably smaller proportion would worry about credit card debt (15%) or a student loan (10%). A loan from a friend (8%) or a family member (7%), or an overdraft (6%) were the least concerning types of debt to young people. Older groups were more concerned than younger groups about student loans (16% compared with 6%) and loans from their family (11% compared with 4%). A list of statements was shown to young people and they were asked which of them best described how they felt about debt. Figure (b) shows the results. RBS MoneySense Research Panel Report

109 Figure (b) Which of the following statements best describes how you feel about debt? Single choice. Base: All, ROI (380) Young people were most likely to agree with the statement that I would not like to get into any debt (34%), followed by getting into debt is to be expected but I will try not to get into too much (20%). A sixth of young people (16%) felt that having debt is OK as long as you pay bits back regularly, while a similar proportion were more cautious and agreed that getting into debt could lead to bankruptcy (15%). More than one out of ten young people (12%) were unsure which statement best described their feelings about debt, while just 3% felt that it doesn t matter if you get into lots of debt because you ll pay it off yourself eventually. Those aged were more likely than those aged to feel that they would not like to get into any debt (39% compared with 28%), while the year-olds were more likely to agree that getting into debt is to be expected but I will try not to get into too much (28% compared with 13%) Learning about money Nine in ten young people surveyed (90%) felt that it was important to learn about managing their money, with more than half (55%) stating that it was very important. Worryingly, 15% of those in social group DE were not sure if learning about money management was important or not (compared with 3% of ABs and 2% of Cs). One boy in the qualitative interviews explained why he felt it was important: RBS MoneySense Research Panel Report

110 If you don t know [how to manage your money] you might mess up later in life. If you don t save properly or understand how banks work. [Gerald, 16, Castlebar] Two thirds of young people (66%) felt that they knew more about money management than a year ago and 22% knew the same amount. Just 3% felt that they knew less and 8% were unsure. All those who felt that they knew less were aged Those in social group DE were more likely than others to feel unsure about whether they knew more or less about money management (17% compared with 4% of ABs and 5% of Cs). Most young people (84%) felt that they had learnt about money management at school or at home over the past year. Three fifths (60%) remembered learning about money management at school. Some young people felt that they were educated about money management through family members outside of their home (33%), from friends (22%) or through the TV or radio (13%). Girls were more likely than boys to recall learning about money management from school and home while older groups were more likely to recall learning from someone at home. Girls were also more likely to report learning through magazines (9% compared with 0% of boys). Three fifths of young people (60%) wanted the same number of money management lessons at school as they currently had, a third (32%) wanted more and just 8% wanted less. Girls were more likely to be satisfied with the number of money management lessons at school. Although most young people were happy to receive money management lessons at school, only a third (35%) felt that teachers were the best people to teach this subject. They were more likely to want their parents (62%) or financial experts (34%) to teach them, and a minority (6%) wanted to learn from their friends. Boys were more likely than girls to prefer learning from financial experts or their friends Financial aspirations Figure (a) shows the aspirations that young people had about their education. RBS MoneySense Research Panel Report

111 Figure (a) What qualifications do you think you will get during your education? Multiple choice. Base: All, ROI (380) In general, expectations were not very high among young people about the qualifications they might achieve. More than half of young people (56%) expected to achieve a Junior Certificate and almost two thirds (63%) expected to achieve a Leaving Certificate. More than half (54%) expected to achieve higher education qualification of any kind, although less than half thought that they would achieve a university degree (47%). A quarter expected to achieve a master s degree (25%) and 12% a PhD. Other qualifications that fewer young people expected to achieve included Diplomas (18%), FETAC levels 1 5 (11%), FETAC level 6 or an Advanced Certificate (10%), or apprenticeships (10%). Those aged had higher aspirations than those aged 16 19; they were more likely to expect to achieve FETAC level 6 qualifications or an Advanced Certificate (13% compared with 6%) and higher education qualifications (60% compared with 46%). There was a considerable difference in aspirations to achieve a higher education qualification among young people from more affluent backgrounds. Those in social groups AB and C were more likely to expect to achieve a university degree than DEs (51% and 53% respectively, compared with 33% of DEs) and the same pattern emerged for achieving any higher education qualification (58% of ABs and 62% of Cs, compared with 38% of DEs). RBS MoneySense Research Panel Report

112 Those who expected to go to university were asked how much money they thought they would owe by the end of their course. Two fifths (39%) expected to owe up to 10,000, almost half (48%) expected to owe up to 15,000, three fifths (56%) expected to owe up to 30,000 and almost two thirds thought they would owe up to up to 50,000 (64%). A fifth (20%) were unsure. Girls tended to expect to owe more money after university than boys. When asked when they might start to repay their university debt, a third of young people (32%) expected to be able to start paying back university debts while they were still studying and 17% thought they would be able to do so as soon as they finished university. More than a quarter (27%) had not yet thought about it. Boys were more likely than girls to think that they could start repayments as soon as they finished university, or to admit that they had not yet thought about it, while girls were more likely to be unsure. Older groups were considerably more likely than younger groups to think that they would be able to start to repay their debts as soon as they finished their course. One boy from the qualitative interviews explained how he was hoping to avoid getting into debt at university: I can t avoid [debt] but I have an agreement with my granddad, he s going to pay for everything so I can study, he s going to cover it but if I was to do it myself, I d go into debt. [Jacob, 16, Castlebar] Young people were then asked if they expected to own their own business in the future and more than a third (36%) said that they hoped to do so. The industries that they most expected to work in were hair and beauty (16%), food and drink (14%) or sport and leisure (11%). Girls aged were most likely to hope to start a hair and beauty business, or a food and drink business, while boys were more likely than girls to expect to own a business based on sport and leisure. The average expected earnings at each life stage were: 16,300 (mean) when finishing education (median 5,000) 31,400 (mean) at the age of 25 (median 20,000) 60,300 (mean) at the age of 35 (median 40,000) However, many young people found this a difficult question to answer and only around two fifths provided an expected salary figure for each life stage. Boys felt more able to have a guess at the expected salaries, while girls were more likely to say they did not know. Some uncertainty was also seen when young people were asked about their future career aspirations. Around one in five (18%) young people in the Republic of Ireland were unsure of what they intended to do, with younger pupils most likely to be unsure (23% of those aged 12 to 15, compared with 11% of those aged 16 to 19). RBS MoneySense Research Panel Report

113 Over one in ten pupils (14%) aspired to become a teacher in the future, with the next most popular career choices being veterinarian (8%), hairdresser, sports player or medical practitioner (all at 6%). Girls were more likely to aspire to become veterinarians (12% compared with 5%), hairdressers (11% compared with 2%) or nurses (3% compared with 0%), or to aspire to work in entertainment (3% compared with 0%). They were also more likely to provide the broad answer that they wanted a good job (6% compared with 0%). Boys were more likely to aspire to become sports players (12% compared with 0%), secondary teachers (4% compared with 1%) or airline pilots (3% compared with 0%). Pupils and students aged 16 to 19 were more likely than younger pupils to aspire to become veterinarians (13% compared with 5%), to want to work with children and young people (9% compared with 2%) or to aim to become airline pilots (2% compared with 0%). Young people were also asked what they thought the average salary was for different careers. The results are shown in Figure (b). Figure (b) How much do you think people in the following careers earn, on average? Open numeric. Base: All who provided a figure, shown in brackets beside each job type. ROI Note: Figures have been rounded to the nearest 100. RBS MoneySense Research Panel Report

114 Figure (b) shows that on average, young people expected footballers to earn by far the highest salary ( 5.4million), and X Factor winners and gold medal Olympians were perceived to be the next highest earners (both 1.2 million). Professionals such as doctors, lawyers and accountants were expected to earn six-figure salaries, while hairdressers, waiters and bus drivers were expected to earn 26,000 or less. Girls and those in social group DE were least able to estimate the average salary of a range of jobs. For example, 53% of boys and only 21% of girls estimated the salary for a waiter or waitress. Finally, young people were asked when they expected to reach certain life stages, including leaving home, buying a car, buying a house, having a family and retiring. Around seven out of ten young people expected to be able to leave home (69%) or buy a car (68%) by the age of 21 and around nine out of ten expected to do both by 25 (90% to leave home and 87% to buy a car). A third (34%) thought that they would buy a house by the age of 25 and 78% hoped this would be possible by 30. A fifth of young people (20%) expected to have a family by the age of 25, while three fifths (62%) expected to do so by the age of 30. Just a third of young people (35%) hoped to retire by the age of 65 and three quarters (76%) thought they would do so by 70. Boys were more focused than girls on buying a car at a younger age; 92% of boys and 83% of girls thought they would do so by the age of 25. Girls, on the other hand, were more likely than boys to expect to have a family by the age of 21 (8% compared with 3%). Thinking about the type of financial products they would need in the future, around 8 out of 10 young people expected to need savings (81%) and around a three quarters thought they would need insurance (75%) or a bank account (71%). Around 6 out of 10 thought they would need a pension (62%) or a credit card (56%) and half anticipated needing a mortgage (50%). A smaller proportion of young people expected to need a debit card (41%), loan (29%) or overdraft (16%). RBS MoneySense Research Panel Report

115 6. MoneySense Research Panel: Trends in responses This section looks at the responses of young people to the research questions over time. It aims to identify patterns in the data and differences between groups, with a particular focus on gender, age, socio-economic group (SEG) and country among those aged 12 to 19. In order to explore the trends across data collected from 2007 through to 2011, the dataset was weighted by gender, age, location and socio-economic group. The approach to weighting was developed in order to take into account the nontracking nature of the survey (individual cohorts of young people responding to the survey each year), changes to the sample and changes to the survey questions over five years, as well as to maximise comparison across the dataset. Therefore, the data presented in this section needs to be read as separate to the dataset used to report on 2011 findings earlier in the report. Statistically significant differences in the proportion of respondents answering a question in a specific way in the years between (usually) 2007 and 2011 were tested across the dataset. However, this could not be used to show the overall direction of the difference. At the overall level, significance testing was carried out to ascertain which proportion or average (mean) score in each year differed from those in each other year. 24 This was not, however, repeated for each of the different socio-economic groups. The main thrust of this section is to look for general patterns in the data over time, specifically exploring changes in patterns of responses and reviewing any evidence of year-on-year changes. It also examines whether there was a narrowing or widening gap between proportions of young people in different groups, such as boys and girls, or older and younger respondents. The table below provides the sample size of young people in each year, including a breakdown of the number of respondents in each of the demographic groups used in the analyses. 24 The Chi Square test in the statistics software package SPSS 18 was used to show where there was a significant difference in the proportion of respondents answering a question in a specific way in the between (usually) 2007 and However, this cannot be used to show the overall direction of the difference. At the overall level, significance testing was carried out to ascertain which proportion or average (mean) score in each year differed from those in each other year. RBS MoneySense Research Panel Report

116 Unweighted sample size of MoneySense respondents : distribution by gender, age, socio-economic group and country N % N % N % N % N % Gender Boy 3, , , , , Girl 3, , , , , Age band , , , , , , , , , , Socioeconomic AB 1, , , , , C 2, , , , , group DE 2, , , , , Country England 5, , , , , Wales , , Scotland 1, , , , , TOTAL 6, , , , , Current financial situation Where young people get their money from Young people were asked where (or how) they got their money. To examine this over the five-year period we looked at combined measures of: pocket money (including other money from an adult at home) and earnings from any job or chores that they did; money they borrowed from friends and family; and money from a bank or building society. Figure 6.1 (a): Percentage who received pocket money (including other money from an adult), by age group Base, All: 2007 (6,871); 2008 (9,213); 2009 (9,985); 2010 (12,159); 2011 (11,704). RBS MoneySense Research Panel Report

117 Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) There was a fairly consistent level of pocket money (including other money from an adult) received by respondents over the five years, with more girls than boys receiving pocket money in each year. However, Figure 6.1 (a) shows that between 2007 and 2011 the proportion of younger (12 15) respondents who received pocket money decreased whereas the proportion of older (16 19) respondents who received pocket money increased. By 2011 the gap in percentages receiving pocket money by age was at its narrowest. Figure 6.1 (b): Percentage who received pocket money (including other money from an adult), by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) Figure 6.1 (b) shows that between 2007 and 2009, a very similar proportion of young people in all three countries received pocket money, but from 2010 the proportion started to decline among young people living in Wales, reaching a low of 74% in 2011 compared with 83% in both England and Scotland. Fewer young people earned their own money from either a part-time job or from doing chores in the home or for another family member in 2011 than in 2007, though proportions were at their lowest in RBS MoneySense Research Panel Report

118 Figure 6.1 (c): Percentage who earned their own money, by gender and SEG Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). This decline was evident by gender, age and socio-economic group, but Figure 6.1 (c) shows that it was most striking among boys (55% to 45%) and those from more affluent backgrounds (59% to 49% among AB). RBS MoneySense Research Panel Report

119 Figure 6.1 (d): % who earned money their own money from a part-time job by age and gender Base, All: 2007 (6,871); 2008 (9,213); 2009 (9,985); 2010 (12,159); 2011 (11,704). Base, Males: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Females: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12-15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16-19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Young people earning money through jobs decreased over time. This decline was apparent across all age, gender and social groups although the largest decline was among year olds (47% in 2007 to 36% in 2011). Figure 6.1 (e): Percentage who earned their own money, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016). Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666). RBS MoneySense Research Panel Report

120 Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022). A steady decline in the number of young people earning their own money was evident in England, and even more so in Scotland (from 54% in 2007 to 44% in 2011), but in Wales proportions fluctuated from 45% in 2007, to a low of 41% in 2008, and then a high of 50% in 2011 (Figure 6.1 (e)). Figure 6.1 (f): Percentage who borrowed money, by SEG Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). The proportion of young people who borrowed money from family, friends or a building society declined substantially between 2007 and 2011, with the steepest decline occurring between 2009 and As with earnings, this overall decline was evident across both genders, and all age and socio-economic groups. However, an increase in borrowing between 2010 and 2011 was particularly evident for older respondents (from 12% in 2010 to 17% in 2011) and those living in England (from 13% in 2010 to 15% in 2011). Figure 6.1 (f) shows the percentages of young people who borrowed money by SEG, with the slight increase in borrowing in 2011 being evident across all three groups Young people with bank accounts There was a year-on-year decline in the proportion of young people with their own bank account. The decline was particularly marked for boys and younger respondents. Figure 6.1 (g) shows that in 2007, 82% of boys and 79% of girls had a bank account, compared with 73% of boys and 75% of girls in RBS MoneySense Research Panel Report

121 Figure 6.1 (g): Percentage with a bank account, by gender Base, All: 2007 (6,871); 2008 (9,213); 2009 (9,985); 2010 (12,159); 2011 (11,704). Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Figure 6.1 (h) shows that although far more young people have a bank account once they reach age 16, there was a decline in the overall proportion of young people with a bank account over the five-year period. Figure 6.1 (h): Percentage with a bank account, by age group Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) RBS MoneySense Research Panel Report

122 Interestingly, while there has been a steady decline in the proportion of year-olds with a bank account since 2007, the decline was slower among year-olds. Although those in socio-economic group AB were the most likely to have a bank account in each year between 2007 and 2011, the decline was slightly less pronounced among young people in SEG C than young people in SEGs AB or DE. Figure 6.1 (i): Percentage with a bank account, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) Looking at location, whereas a steady year-on-year decline was evident among young people in England, the lowest proportion with a bank account in Wales was recorded in 2009 and in Scotland in In 2011, around three quarters of all young people had a bank account, with the highest proportion being in Wales (75%), and the lowest in England (73%). Within England, young people in the South West were among the most likely to have a bank account in 2007 and remained so in 2011 (85%). However, young people in Yorkshire had also been among the most likely to have a bank account in 2007 (84%), but had become by far the least likely in 2011 (59%) Type of money received The overwhelming majority of young people (98 to 99%) received some money in the month prior to interview in each year between 2007 and They were asked to say how they had received the money. RBS MoneySense Research Panel Report

123 Cash remained the firm favourite form to receive money in each year for respondents in each age, socio-economic and gender group. The proportions that received cash increased year-on-year between 2007 and 2011, with the biggest increase occurring between 2007 and 2008, and among boys and those aged over 16. The proportion of young people aged who received cash increased from 87% in 2007 to 89% in 2010 and For those aged over 16, it increased from 69% in 2007 to 80% in Figure 6.1 (j) shows that in 2007, the highest proportion of young people who received cash lived in Wales, but by 2011 they were the least likely (82%) due to a steady year-on-year increase between 2007 and 2011 in England, and between 2007 and 2010 in Scotland. Figure 6.1 (j): Percentage who received money as cash, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) This increase in cash was mirrored by a sharp reduction in the percentage of young people who had money paid directly into their bank account between 2007 and 2008, with levels only slightly increasing thereafter or levelling off. RBS MoneySense Research Panel Report

124 Figure 6.1 (k): Percentage who had money paid directly into their bank account, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) Figure 6.1 (k) shows that biggest decline was among young people living in Scotland (from 48% in 2007 to 36% in 2011). Older respondents aged over 16 were far more likely to have had money paid directly into their bank account than young people aged 12 15, but the overall decline between 2007 and 2011 was more apparent among those aged over 16. RBS MoneySense Research Panel Report

125 Figure 6.1 (l): Percentage who had money paid directly into their bank account, by age group and gender Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Boys had been more likely than girls to have money paid directly into their bank account in 2007, but were less likely in each year from 2008 to 2011 (Figure 6.1 (l)).young people in SEG AB were most likely to have money transferred to them in this way in each year, and they also showed the smallest overall decline between 2007 and 2011; young people in SEG DE were the least likely and had the biggest overall decline between 2007 and Just 6% of young people had money paid into an online bank account in 2011, just 1% more than in This was lower for young people living in Wales and Scotland (4%). This type of money transfer reached a high of 7% overall in 2009, with the increase being particularly apparent among boys (8%) and older respondents aged over 16 (11%, though the figure was as high as 17% for those aged 18). However, the decline that occurred between 2009 and 2010 was evident across all age and socio-economic groups, though a slight increase in 2011 was also evident across all groups. Vouchers were received by 9% of all young people in 2007 and 2011, with a peak of 11% in They were more popular among girls and younger respondents in each year. The proportion of year-olds who received a voucher declined from 13% in 2007 to 10% in 2011, but increased among those aged over 16 from 3% to 6%. This could reflect the increased popularity of giving itunes and other online vouchers to older teenagers. Young people in England and SEG A were most likely to receive a voucher in 2011, but the decline in RBS MoneySense Research Panel Report

126 young people receiving vouchers was most apparent in Scotland: 10% in 2007, 14% in 2009 and 7% in Figure 6.1 (m): Percentage who received mobile phone top-up or credit, by gender and SEG Base, All: 2007 (6,871); 2008 (9,213); 2009 (9,985); 2010 (12,159); 2011 (11,704). Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). Between 2009 and 2010 there was a very noticeable decline in the proportion of young people in the survey receiving top-up credit for their mobile phone, with an equally steep decline between 2010 and More girls and younger respondents received this form of money in each year, but the decline was also most apparent among these groups of respondents. This change was also apparent across all socio-economic groups, although the decline started earlier for those in SEG DE (see Figure 6.1 (m)) Amount of money received The average amount of money received by young people in a month fell considerably between 2008 and 2009 from to 74.38, increased to in 2010, but then fell again to in 2011 or 65% of the 2008 average. This pattern and overall reduction was felt in all country, age and socioeconomic groups but was most apparent for younger respondents (age 12 15), those in SEG AB and those who lived in Scotland, who received 57 58% of their 2008 average. Those feeling the least reduction in the average amount of money they received were older (age 16 19) respondents (70% of the 2008 average), and those who lived in Wales (75% of the 2008 average). Although both boys and girls received around two thirds of their 2008 average in 2011 (65% for boys, and 64% for RBS MoneySense Research Panel Report

127 girls), girls were the only group to receive less (on average) in 2011 than in 2009, albeit only marginally ( in 2009, and in 2011). Overall, cash and payment into a bank or building society accounted for more than 90% of all money received in each year. Receipt of cash made up around half of all money received, with payment into a bank account around making up 40%. However, in 2011 there was slightly more money received as cash (50% in 2008, and 53% in 2011) and slightly less being paid into a bank account (41% in 2008, and 37% in 2011). This was the pattern for both boys and girls and across socio-economic groups. Figure 6.1 (n): Percentage of money received in cash or paid directly into a bank account, by age group Age 12 Age Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Figure 6.1 (n) shows that younger respondents (12 15) were the most likely to receive money as cash in each year, and this was increasingly the case over the four-year period (from 61% to 72% of all money received). Older respondents (16 19) received the same amount of their money as cash in 2008 and 2011, and both groups received slightly less into their bank account in 2011 than in Attitudes towards their financial situation Having enough money In 2010, 46% of young people felt they needed more money to be happy. This reduced to 39% in Older respondents (16 19) were the most likely to feel they needed more money to be happy in both years: 56% in 2010, and 48% in Those in SEG DE had the lowest reduction in the proportion who felt that they needed more over the two years, declining from 46% to 43%. For those who did need more money to be happy, around a quarter did not know how much they needed, with this increasing from 24% in 2010 to 28% in 2011 and being highest among girls in both years (30% in 2010, and 32% in 2011). RBS MoneySense Research Panel Report

128 Among those who gave a figure, the amount they needed also decreased over time. This data was available for all five years of the study, with the proportion of young people thinking that up to 50 would be enough increasing from 33% in 2007 to 46% in 2011, and the proportion of young people thinking that over 500 was necessary to be happy decreasing from 17% in 2007 to 10% in However, 2010 did see a return to the high of This increase in the proportion of young people thinking that they needed over 500 in 2010, and the subsequent reduction in 2011, was apparent for all groups. The young people were asked how much they agreed or disagreed with three statements relating to money in each survey year. The proportion who strongly agreed or agreed with the statement I always have enough money over time reflected a U-shaped distribution, being lower in 2007, 2010 and 2011 than in 2008 and Figure 6.2 (a): Percentage who agreed or disagreed I always have enough money, by gender Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). This relationship was found in each gender, age and SEG, with more boys than girls agreeing they always had enough money in each year. Figure 6.2 (a) shows that the proportion of boys and girls who strongly disagreed or disagreed with the statement increased year-on-year to a high of 26% and 30% respectively in 2010, though there was a slight dip in the proportions disagreeing in This same pattern was stronger among younger than older respondents, and among those in SEG DE. The proportion of respondents who strongly agreed or agreed with the statement My money always goes too quickly showed a general decline between 2007 RBS MoneySense Research Panel Report

129 and More girls than boys agreed in each year, and more boys than girls disagreed in each year. However, fewer girls and boys agreed in 2011 than in any previous year. A greater number of respondents aged over 16 also agreed with the statement in each year over time, although the level of agreement among older respondents showed the sharpest decline over the five years (from 62% in 2007 to 54% in 2011). Figure 6.2 (b): Percentage who agreed or disagreed that My money always goes too quickly, by SEG Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). Figure 6.2 (b) shows differences by socio-economic group. We can see that in each year with the exception of 2010, a higher proportion of respondents in SEG DE agreed with the statement, and an increasingly high proportion of those in SEG AB disagreed. The proportion of young people who agreed that Money worries me increased over the five years from 24% in 2007, to reach a high of 29% in Girls worried more about money, with a higher proportion of girls than boys agreeing that money worries them in each year (27% to 21% in 2007, and 33% to 24% in 2011). RBS MoneySense Research Panel Report

130 Figure 6.2 (c): Percentage who agreed Money worries me, by age group Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Figure 6.2 (c) shows that more of the older (16 19) than younger (12 15) respondents also agreed that they worried about money in each year, with the difference in the proportion agreeing increasing slightly over time. Differences by SEG were small, and proportions that agreed or disagreed remained fairly consistent over time. Figure 6.2 (d): Percentage who agreed Money worries me, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) RBS MoneySense Research Panel Report

131 Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) However, in Figure 6.2 (d) we can see that a higher proportion of young people in England, and even more so in Wales, were increasingly worried about money in comparison with young people in Scotland. Differences were widest in 2011: 32% in Wales, 29% in England and 23% in Scotland. In both 2010 and 2011 more than 80% of young people strongly agreed or agreed with the statement that It s important to me to have my own money (86% in 2010, and 85% in 2011), and just 3% of young people disagreed with the statement. Older respondents were the most likely to agree in both years 91% in 2010, and 90% in Keeping track of money The most popular way that respondents kept track of the money they had spent was to remember what I have spent in my head. This increased over time from 49% in 2007 to 52% in 2010 and More boys than girls relied on such an informal tracking method in each year, though the proportion increased for both genders and both age groups between 2007 and Formal methods of keeping track of money keeping receipts, checking bank balances, printing a mini-statement, reading a bank statement, logging what had been spent in a notebook or spreadsheet were employed by more than half of all respondents in each year, with the highest level (59%) in In all groups there was a notable dip in the use of formal tracking methods in 2008 and then a slight dip in More girls than boys used formal methods in each year between 2007 and 2011, with the proportion increasing over the five-year period from 58% to 63% among girls (highest at 64% in 2010), but reducing slightly from 54% to 53% among boys. RBS MoneySense Research Panel Report

132 Figure 6.2 (e): Percentage who used formal methods to track spending, by gender and SEG Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). Older respondents were far more likely than younger respondents to have used formal methods, although fluctuations in the proportion of young people who used them were apparent over time. Among younger respondents a slow but steady rise was in evidence, reaching a high of 50% in Figure 6.2 (e) shows that there was an increase over the five-year period in all SEGs, but the increase was least apparent in SEG DE. The proportion not keeping track has essentially halved over the five-year period from a high 20% in 2007 to 10% in both 2010 and RBS MoneySense Research Panel Report

133 Figure 6.2 (f): Percentage who did not keep track of money spent, by gender and age group Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) This level of decline was evident in all gender, age (Figure 6.2 (f)) and socioeconomic groups, although there was a slight increase in some groups between 2010 and RBS MoneySense Research Panel Report

134 Figure 6.2 (g): Percentage who did not keep track of money spent, by country Base, England: 2007 (5,969); 2008 (7,999); 2009 (8,679); 2010 (10,562); 2011 (10,016) Base, Wales: 2007 (347); 2008 (464); 2009 (499); 2010 (614); 2011 (666) Base, Scotland: 2007 (554); 2008 (750); 2009 (807); 2010 (982); 2011 (1,022) Understanding financial products and services In 2010 and 2011, young people were asked what they should do when they receive a new debit or credit card. They had to select from a list of options. Reassuringly, less than 1% thought they should tell a friend their PIN number and only 6% did not know what they should do this was higher among younger than older respondents (8% to 4%) and those in SEG DE (7% compared to 4% of ABs and Cs). Over half of all respondents thought that they should phone the bank to activate the card (55% in 2010, and 56% in 2011) and just under half thought they should set a new PIN number (47% in 2010, and 49% in 2011). Six in ten knew to sign the new card (59% in 2010, and 61% in 2011) and cut up the old card (60% in both 2010 and 2011). Girls and respondents in SEG AB were more likely than other groups to know that they should cut up their old card, or that they should sign their new card. RBS MoneySense Research Panel Report

135 Figure 6.2 (h): Percentage knowing what to do when they receive a new credit or debit card, by age group Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Figure 6.2 (h) shows that older respondents were more likely than younger respondents to know that they should cut up their old card and sign the new card, whereas younger respondents were more likely to say they should phone up the bank or card company to activate the new card and to set a new PIN number. 6.3 Financial behaviour Purchasing behaviours In each year between 2008 and 2011 young people were asked about the amount of money they spent on a variety of goods clothes or shoes, technology (electronic games, DVDs, etc.), socialising, music, food, sports and hobbies, and (if over 17) driving lessons. The total amount of money spent by young people decreased year-on-year between 2008 and 2011, from an average of to (76% of the 2008 average), with steep reductions in average spends occurring after To compare like-for-like in terms of money spent, the amount spent on sports and hobbies, and driving lessons, in 2010 and 2011 were excluded from further comparisons, as these had not been asked about in previous years. As a result, the average amount spent in 2010 reduced further to and to in % of the average amount spent in 2008, with young people spending less in 2011 on all types of goods that they were asked about. RBS MoneySense Research Panel Report

136 Boys spent more than girls in each year and also reduced the average amount they spent over time less than girls in each separate category. In 2011, the average amount that boys spent was (68% of what they spent in 2008) compared with spent by girls (63% of what they spent in 2008). Figure 6.3 (a): Average amount of money ( ) spent by young people, by gender and age group Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465). Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240). Figure 6.3 (a) shows that older respondents spent more on average than younger respondents in each year, and although they spent less in 2010 than in 2008, the amount they spent over time had reduced by less than the average spent by younger children. In 2011, older children spent 70% of what they had spent in 2008 ( , down from ), compared with the 63% spent by younger children ( 83.43, down from in 2008). Young people in all socio-economic groups spent less over time, with average amounts spent reducing the most in SEG DE (from in 2008, to in 2011) and the least in SEG C (from in 2008, to in 2011). The larger (on average) amount of money spent by boys in each year was primarily accounted for by the money that they spent on technology. RBS MoneySense Research Panel Report

137 Figure 6.3 (b): Proportion of total money spent on different things in 2008 and 2011 by gender Boys 2008: average Girls 2008: average Boys 2011: average Girls 2011: average Base, Boys: 2008 (4,607); 2011 (5,852). Base, Girls: 2008 (4,607); 2011 (5,852). In Figure 6.3 (b) we see that this amounted to 30% of all money that boys spent in 2011, compared with the 6% of the total money spent by girls. Looking at age, younger respondents also spent more of their money on technology and games in each year (20%, compared with 14% for older respondents in 2011), and older respondents spent more on socialising (28%, compared with 20% for younger respondents in 2011). Although young people spent less money year-on-year between 2008 and 2011 on average, the proportion of the money they spent on the different types of goods was very consistent. For example, in 2011 boys spent an average of RBS MoneySense Research Panel Report

138 34.36 on clothes, which amounted to 27% of all of the money they spent. Girls spent an average of on clothes, which was 42% of all of the money they spent. In 2008, the comparable proportion for boys was 29%, and for girls 44% Attitudes to spending Young people were asked about attitudes towards spending between 2007 and 2011; specifically, how much they agreed or disagreed with the statements: I don t spend money on stuff if I think I might need the money for something else, and If I run out of money, I can just get more from someone at home. Around two thirds of young people in all groups across each year strongly agreed or agreed that they did not spend money if they thought they might need the money for something else, although the proportion had increased slowly over the five-year period. Among boys, the increase was from 65% in 2007 to 69% in Among girls, the comparable increase was from 64% to 70%. The biggest increase in agreement was observed among older (age 16 to 19) respondents: from 67% in 2007, to 76% in Among younger (age 12 to 15) respondents the observed increase was only 3% (from 63% to 66%). One third of young people strongly agreed or agreed that If I run out of money, I can just get more from someone at home. Compared with the initial agreement expressed in 2007, more young people expressed agreement in all groups in each year between 2008 and 2010, but in 2011 the proportions who agreed decreased in most groups to be nearer to 2007 agreement levels. In each year more girls, older teenagers (aged 16 to 19) and those in SEG DE agreed. However, the largest increase in the proportion agreeing was found among respondents in SEG AB 26% agreed in 2007, and 34% in The corresponding rates for SEG C were 32% and 30%, and in SEG DE 35% agreed across both years. Boys, younger respondents and those in SEGs AB and C were most likely to express disagreement Saving behaviours Around three quarters of young people saved some part of their money in each year. The proportion was very stable over time for boys, staying at 76%, though it increased year-on-year for girls from 70% in 2007 to 77% in An increased proportion of both younger and older respondents saved some part of their money over the five-year period. The increase was particularly evident among year-olds, rising from 72% to 80%, compared with an increase from 73% to 75% among year-olds. RBS MoneySense Research Panel Report

139 Figure 6.3 (c): Percentage who saved some part of their money, by SEG Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). In Figure 6.3 (c) we can see that while young people in SEG AB were most likely to have saved something in each year, the percentage of young people who saved increased the most in SEG C between 2007 and Figure 6.3 (d): Percentage who spent or saved all of their money, by gender Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). RBS MoneySense Research Panel Report

140 Figure 6.3 (d) shows that more boys than girls saved all of their money in each year, but the proportions were stable and closer to each other from 2009 (10% to 7%) than they had been in 2007 (13% to 8%). Younger respondents were also more likely to have saved all their money in each year. There were no differences by SEG. More girls than boys spent all of their money in each year up to 2010, but again the gap between the proportions had narrowed over time. In 2011, more boys than girls spent all of their money (19% to 18%). Girls also showed the biggest decline in the proportion spending all of their money over the five-year period, with an 8% decrease in those spending all of their money from 2007 to Older respondents (16 19) were also more likely than younger respondents to have spent all of their money in 2007, but by 2009 more younger (12 15) than older respondents spent all of their money (24% to 22% in 2007, and 17% to 19% in 2011). Looking at patterns by SEG, young people in SEG AB were the least likely to have spent all of their money in each year, but the gap between SEGs was narrower in each year than it had been in In 2010 and 2011, respondents were asked if they saved regularly. More than half of all respondents did, although there was a slight decrease from 58% in 2010 to 56% in More boys than girls saved in each year (58% to 51% in 2010; 56% to 50% in 2011). Looking at regular savers by age and SEG, not only did younger respondents and those in SEG AB save more than older respondents and those in SEGs C and DE in each year, but a higher percentage of these respondents saved in 2011 than in For example, in SEG AB, 57% saved regularly in 2010, and 59% in Comparable figures for SEG C fell from 55% to 52%, and for SEG DE from 54% to 50%. More than three quarters of young people felt that their parents encouraged them to save, a quarter their grandparents, 8 9% friends, and less than 5% either a teacher or someone on TV or writing in the newspapers. In 2009, 15% of young people felt no-one encouraged them to save, and this increased to 17% in More female and younger respondents, and those in SEG AB, felt their parents encouraged them to save, although the gender gap had decreased between 2009 (74% to 81%) and 2011 (77% to 79%). More boys, younger respondents and those in SEG A thought that their grandparents encouraged them to save, whereas more boys, older respondents and those in SEG DE were the most likely to report that no-one encouraged them to save in each year. RBS MoneySense Research Panel Report

141 6.3.4 Saving for the future When young people saved money, more than 70% saved to buy something in the relatively near future (between a week and a year) in each year between 2008 and 2011, although the proportion had declined to 72% from a higher level of 78% in There was a sharp drop in the percentage who saved for their longer-term future and a sharp increase in the proportion who had not saved anything in 2010 across all age, social and gender groups. The highest percentage of young people who had saved each year was among older (16 19) respondents (40% in 2008, and 45% in 2011), and the biggest increase occurred in Wales where saving for the future increased from 31% in 2008 to 39% in The percentage of respondents who had not saved any money also increased between 2008 and 2011 in all age, socio-economic and gender groups, but in this case the biggest increase was among those living in Scotland: from 12% in 2008 to 17% in In 2010 and 2011, young people who were saving for something in the relatively near future (between a week and a year) were asked what they were saving for: clothes or shoes, technology (DVDs, games consoles, etc.), music, socialising, sports equipment or lessons, equipment or lessons for other hobbies, driving lessons, a holiday, to move out of home, or for college or university. Slightly more young people were saving for college, moving out of home, a holiday, socialising or for clothes in 2011 than in Girls (62% in 2010; 65% in 2011) were far more likely than boys (43% in 2010; 44% in 2011) to be saving for clothes, whereas boys were more likely than girls to be saving to buy equipment or lessons for some kind of sport or other hobby. Boys were also far more likely than girls to be saving for technology (62% to 20% in 2010; 61% to 20% in 2011). Younger (12 15) respondents were also more likely to be saving for some kind of technology or music (23% in 2010; 21% in 2011) than older (16 19) respondents (12% in 2010; 10% in 2011), whereas more girls (43% in 2010; 46% in 2011) and older respondents (42% in 2010; 47% in 2011) were saving to go out with friends and general socialising than boys (32% in 2010; 35% in 2011) and younger respondents (35% in 2010; 37% in 2011). More of the older than younger respondents (32% to 10% 2010; 33% to 12% 2011) were also saving for driving lessons. Just under a quarter of all young people were saving for a holiday (22% in 2010; 24% in 2011), but this was highest at a third among older respondents (34% in 2010; 36% in 2011) and girls (28% in 2010; 29% in 2011). Those in Scotland were most likely to be saving for a holiday, with the gap between countries increasing over the two years: 27% compared with 22% in England in 2010; 31% RBS MoneySense Research Panel Report

142 compared with 23% in England in Conversely, the proportion saving to socialise increased between 2010 and 2011 in England (38% to 41%) and Wales (36% to 42%) but decreased slightly in Scotland (38% to 37%). Although no more than 10% of young people were saving to move out of home in any age, gender or socio-economic group, the biggest increase in saving between 2010 and 2011 was in the percentage saving for college or university, which rose from 23% to 28%. This was naturally higher among older respondents in both years (35% in 2010; 40% in 2011). However, it was also higher among girls than boys, although the gap between genders had decreased (19% to 28% in 2010; 25% to 31% in 2011). More young people in England and Wales were saving for college or university than in Scotland, with an increase in the difference between 2010 (18% in Scotland, 22% in Wales, 24% in England) and 2011 (20% in Scotland, 28% in Wales and England) Attitudes to saving More boys than girls, and more and younger than older respondents, strongly agreed or agreed with the statement that I save more money now than I used to, in each year. Figure 6.3 (e): Percentage who strongly agreed or agreed that I save more money now than I used to and I think I m good at saving money, by gender Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Figure 6.3 (e) shows that more boys than girls also strongly agreed or agreed with the statement I think I m good at saving money in each year, although the proportion of boys agreeing with this statement declined over the five years. RBS MoneySense Research Panel Report

143 A similar proportion of respondents in most groups either strongly agreed or agreed that they saved more than they used to in both 2011 and 2007, allowing for some small fluctuations, although there was a reduction among those in SEG DE agreeing over this time period (62% in 2007, and 59% in 2011). More respondents living in Wales (66% in 2010 and 2011) either strongly agreed or agreed that they saved more than they used to compared with those living in England or Scotland (62% in 2010, and 61% in 2011). A lower proportion of boys, younger respondents and young people in all SEGs and countries strongly agreed or agreed that they were good at saving in 2011 than in 2007, though the decline was most pronounced among those living in Scotland: from 53% to 46%, compared with 51% to 48% in England and Wales. There was also a significant decline in agreement among those in SEG DE, from 50% to 45%. This resulted in an increased difference in agreement by SEG in 2011 compared with previous years. The vast majority (around 80%) of young people strongly disagreed or disagreed that There is no point in saving money in each and every year with proportions remaining overwhelmingly stable, despite small fluctuations over time in all age, social and gender groups. There was evidence of an SEG gradient, and this figure was consistently lowest among young people in SEG DE (85% of ABs, 81% of Cs and 79% of DEs in 2007; 86% of ABs, 82% of Cs and 78% of DEs in 2011). Similarly high proportions of young people strongly agreed or agreed that I think it is important to save. This was higher among boys than girls in 2007 (86% to 82%), but proportions were identical in 2010 (84%) and 2011 (85%). Figure 6.3 (f): Percentage who strongly agreed or agreed I think it s important to save, by age group RBS MoneySense Research Panel Report

144 Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465). Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240). Over the five-year period, older respondents (Figure 6.3 (f)) and those in SEG AB were the most likely to have agreed that it was important to save in each year, although the gap between groups was narrowest in 2011 (87% of ABs and 82% of DEs in 2007; 87% of ABs and 85% of DEs in 2011). More boys than girls strongly disagreed or disagreed that I find it difficult to save in each year, as did more respondents in SEG AB. However, the percentage who disagreed declined in all groups over the five-year time period. For example, it declined from 51% to 45% among boys, from 47% to 42% among young respondents, and from 50% to 46% among those in SEG AB. The biggest reduction in disagreement was among respondents in Scotland, with a decline from 50% to 40%, which resulted in more agreeing (41%) than disagreeing that they found it difficult to save for the first time in The proportion of young people who saved some of their money in a bank or building society was lower in 2011 than in 2007 (59% and 62%, respectively). More boys than girls saved with a bank in 2007, but more girls than boys saved with a bank in each year from A far higher proportion of older than younger respondents saved with a bank in each year, though the proportion in both groups was lower in 2011 than in 2007, with the reduction being more apparent among older respondents (from 50% to 47% of those aged 12 15; from 84% to 78% of those aged 16 19). Figure 6.3 (g): Percentage who saved money in a bank, by SEG RBS MoneySense Research Panel Report

145 Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). In Figure 6.3 (g) we can see that more respondents in SEG AB saved money in a bank in each year between 2007 and 2011 than those in SEGs C and DE. The gap in the proportion who saved between SEGs was also slightly wider in 2011 than it had been in between 2008 and 2010, though this was a long way from the much wider margin seen in This increased gap was due to fewer C and DE respondents saving with a bank in 2010 and 2011 from a high in The proportion of young people who saved money at home in some way (piggy bank, wallet, etc.) increased in all social, age and gender groups. More girls than boys had looked after their money at home in 2007 (58% to 50%), with a bigger increase among boys resulting in identical proportions who had looked after their money at home in 2011 (63%). Younger respondents were much more likely to save money at home in each year than older respondents (65% compared with 36% in 2007; 70% compared with 51% in 2011). Fewer respondents in SEG AB were likely to save money at home. Having an adult at home look after their money was the least cited option when young people were asked where their money was kept (12% in 2007, and 13% in 2011). Across SEGs, respondents in group DE were most likely to have had an adult at home who looked after their money in each year, as were younger respondents (16% compared with 8% of older respondents). 6.4 Financial behaviours at home Talking about money Young people were asked if they talked about various aspects of money with the adults in their home, from how much they earn, spend and save to how much RBS MoneySense Research Panel Report

146 things cost and the sort of bank accounts they have. Around a third of all respondents never talked about things relating to household money, although this declined from 33% in 2010 to 29% in 2011, with only marginal differences across age, gender and SEG. Young people were most likely to talk to adults about what they spend money on (36% in 2010; 39% in 2011) and how much food and utility bills cost (33% in 2010; 38% in 2011). They were least likely to discuss the type of bank accounts the adults have (18% in 2010; 19% in 2011). With the exception of earnings and savings, more older (age 16 19) than younger (age 12 15) respondents discussed changes to the amount of money available to the household (26% compared with 18% in 2010; 28% compared with 19% in 2011), how much is spent on food and bills (37% compared with 31% in 2010; 42% compared with 35% in 2011) and the kind of bank accounts the adults have (21% compared with 16% in 2010; 23% compared with 17% in 2011). Fewer respondents in SEG AB talked with adults about how much money they spent and how much they spent on food and utility bills. Fewer respondents in Scotland talked about each of the different aspects of money, and a larger proportion never spoke about anything to do with household money with adults (32% in England, 38% in Wales and 40% in Scotland in 2010; 28% in England, 31% in Wales and 35% in Scotland in 2011) Trends in saving Around half of all young people felt that the adults in their home wanted to save more money (51% in 2010; 50% in 2011), and watched how much they spent (53% in 2010; 49% in 2011). More than four in ten felt that the adults spent more on their children than themselves (43% in 2010; 42% in 2011), and more than a third felt that the adults worried about money (37% in 2010; 36% in 2011). Just 12% in 2010 and 10% in 2011 felt that there was plenty of money to buy everything we want. This was highest at 14% among respondents in SEG AB in both years. Girls were more likely than boys to think adults wanted to save more or watched how much they spent, with gender differences being particularly apparent in the proportion feeling adults worried about money (42% to 32% in 2010; 41% to 30% in 2011), and that adults spend more on their children than on themselves (50% to 36% in 2010; 49% to 36% in 2011). Apart from feeling that adults wanted to save more, younger respondents were less aware of what adults thought about money than older respondents. Differences were most pronounced in relation to thinking that adults watched what they spent or whether they were worried about money (35% to 40% in 2010; 33% to 41% in 2011). Fewer young people in Scotland also felt that adults worried about money (37% in England, 39% in Wales and 29% in Scotland in 2010; 37% in England, 37% in Wales and 31% in Scotland in 2011). RBS MoneySense Research Panel Report

147 6.4.3 Trends in spending From 2009 to 2011, the young people were asked whether during the last year they thought the adults in their home were spending more, the same or less money on food, activities and days out, holidays, and utility bills. They could also opt for don t know. Between 2009 and 2010, there was an increase in the proportion of young people who didn t know whether adults in their home were spending more, the same or less money in each of the four categories, with a slight increase again in 2011 for food and utilities (7% in 2009 and 11% in 2011 for food; 12% in 2009 and 17% in 2011 utilities). For both food and utilities, there was a u shape in the proportions who thought adults were spending more, decreasing in 2010 before increasing again in 2011 to either come close to or exceed 2009 levels (41% in 2009 and 39% in 2011 for utilities; 32% in 2009 and 34% in 2011 for food). This pattern in the data was in evident across all groups, with more girls than boys thinking that adults were spending more, as well as more respondents in SEG DE. More older than younger respondents felt that adults were spending more on utilities (42% to 40% in 2009; 44% to 37% in 2011). A steady 15 16% of young people in all groups thought that the adults in their home were spending more on activities and days out, though differences were most apparent by age with more younger (age 12 15) respondents thinking that adults spent more in each year (17% compared with 12% of older respondents in 2009; 18% compared with 12% of older respondents in 2011). Less than a quarter of young people thought that more was being spent on holidays in each year (24% in 2009, 22% in 2010 and 23% in 2011), though this was higher among girls, those in SEG AB and younger respondents. It was highest in each year among respondents in Scotland, with differences across countries being widest in This was largely due to lower proportions thinking that more was being spent on holidays in Wales, with a decline from 27% in 2009 to 20% in Comparable figures for 2011 were 23% in England and 27% in Scotland. A third of young people in each year felt that the adults were giving them more pocket money or allowance than they had received a year before, and 12% did not know. There was no difference by gender, but respondents in SEG AB were most likely to report that they received more in each year. Differences were most apparent between the age groups (37% of those aged and 27% of those aged in 2009 said that they were receiving more; similarly, 36% of those aged and 27% of those aged in 2011). A higher proportion of young people in each year in Scotland also thought they received more pocket money or allowance than they had a year ago, increasing from 36% in 2009 to 37% in Conversely, the proportion declined from 31% in 2009 to 26% in 2011 among respondents living in Wales Spending in the future From 2009, young people were also asked whether they thought there would be more, the same or less money for either themselves or adults in their home to spend in a year s time. Across all groups there was a decrease in the proportion RBS MoneySense Research Panel Report

148 who thought that there would be more money for either themselves or adults to spend, and an increase in the proportion who thought there would be less money to spend. Figure 6.4 (a) Percentage thinking more money would be available for adults and themselves in the future, by gender Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Figure 6.4 (a) shows this decline, and also demonstrates that boys were more likely than girls to think more money would be available in the future in each year, with the decrease in the proportion who thought more money would be available also being most evident among those in SEGs DE (32% to 23% for adults, 42% to 33% for themselves). More girls than boys, and more older than younger respondents, thought that less money would be available for themselves to spend in each year, although the proportions increased over time in all groups. The proportion of young people thinking there would be less money for adults to spend in the home steadily increased between 2009 and 2011 (22% to 30%). 6.5 Borrowing money and attitudes towards debt Attitudes towards debt A steady 2% to 3% of all young people did not know what debt was in each year between 2007 and This was coupled with an increase in the proportion of young people thinking that they would have future debt, and a steady decrease in the proportion of young people thinking they would not have future debt. RBS MoneySense Research Panel Report

149 Figure 6.5 (a): Percentage who anticipated future debt, by gender and age group Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465). Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240). Over the five-year period of the survey, Figure 6.5 (a) shows the increase in the percentage of respondents answering that they would have debt in the future. The biggest increase was among older respondents, with those anticipating future debt increasing year-on-year from 36% in 2007 to 47% in The corresponding increase among younger (aged 12 15) respondents was from 25% in 2007 to 29% in Girls were more likely than boys to say that they would get into debt in the future from 2010 onwards. They were also more likely to say that they did not know if they would have future debt in each year, while boys were more likely to say they would not get into future debt in each year. The observed increase in anticipating debt over the five-year period fluctuated across SEGs, but was consistently higher among those in group AB, and was higher for all groups in 2011 than in Young people were asked to identify what they thought of as a debt from a list of options: owing money to a credit card company, a student loan, a mortgage for a house, a bank loan, owing money to a family member or a friend, or having an overdraft on a bank account. More identified each of the options as a debt in 2011 than in Nearly three quarters thought owing money to a credit card company was debt (72% in 2010; 74% in 2011), and more than half thought that a bank loan was debt (54% in 2010; 59% in 2011). Least likely to be identified as RBS MoneySense Research Panel Report

150 a debt was owing money to either a family member or a friend (32% in 2010; 34% in 2011). In both years, boys were less likely than girls to identify owing money to a credit card company and an overdraft as debt (68% to 75% in 2010 and 70% to 77% in 2011 for credit card; 45% to 53% in 2010 and 50% to 55% in 2011 for an overdraft). However, differences were most apparent by age. Figure 6.5 (b) Percentage identifying different aspects of money as a debt in by age group Base, Age 12 15: 2007 (4,322); 2008 (5,744); 2009 (6,198); 2010 (7,573); 2011 (7,148). Base, Age 16 19: 2007 (2,413); 2008 (3,181); 2009 (3,525); 2010 (4,203); 2011 (4,171). Figure 6.5 (b) shows that older respondents were the most likely to identify all of the options as a debt, with differences being most pronounced for a student loan and an overdraft. Fewer young people living in Scotland identified a student loan as a debt in both years. The proportions identifying a student loan as a debt were 44% in England, 42% in Wales and 33% in Scotland for 2010; and 51% in England, 49% in Wales and 41% in Scotland for Young people in each year between 2007 and 2011 thought that 50,000+ was a lot of debt. Figure 6.5 (c): Percentage who agreed that amounts between 10 and 50,000+ were a lot of debt in each year, RBS MoneySense Research Panel Report

151 Base: 2007 (6,735); 2008 (8,968); 2009 (9,774); 2010 (11,851); 2011 (11,357). Similarly, very low proportions felt that 10 and 50 were a lot of debt in each year, but increasing proportions year-on-year thought that anything from 100 upwards to 50,000 was a lot of debt (Figure 6.5 (c)). The biggest increase was in the proportions who agreed that 1,000 (+11%), 5,000 (+10%) or 10,000 (+9%) was a lot of debt to get into. RBS MoneySense Research Panel Report

152 Figure 6.5 (d): Percentage agreed that 5,000 or 10,000 was a lot of debt in each year, by age group Base, Age 12 15: 2007 (4,321); 2008 (5,765); 2009 (6,233); 2010 (7,626); 2011 (7,178). Base, Age 16 19: 2007 (2,414); 2008 (3,202); 2009 (3,542); 2010 (4,226); 2011 (4,179). Differences by age group were the most apparent, with more older than younger respondents thinking that 1,000, 5,000 and 10,000 were a lot of debt in each year over the five-year period (Figure 6.5 (d)). Respondents in SEG AB were more likely to think that 5,000 and 10,000 were a lot of debt in each year, but the gap between SEGs was narrower in 2007 (e.g. percentages who that 10,000 was a lot of debt were 77% of ABs, 74% of Cs and 70% of DEs in 2007; 81% of ABs, 80% of Cs and 78% of DEs in 2011). There was more agreement that 20,000 was a lot of debt among all gender, age and SEGs Attitudes towards future debt More than half of all young people reported that they did not know whether they would be in debt at around age 25 in each year between 2007 and Over the five years there was an increase in the proportion who had thought about the amount of debt they would have by age 25 (20% in 2007, with a high of 29% in 2010, and 26% in 2011) and a steady decrease in the proportion who reported that they would have no debt (24% in 2007, and 12% in 2011 for all groups). RBS MoneySense Research Panel Report

153 Figure 6.5 (e): Percentage who thought they would be in a certain amount of debt around age 25, by gender and age group Base, Boys: 2007 (3,367); 2008 (4,456); 2009 (4,846); 2010 (5,870); 2011 (5,656). Base, Girls: 2007 (3,369); 2008 (4,469); 2009 (4,878); 2010 (5,905); 2011 (5,663). Base, Age 12 15: 2007 (4,322); 2008 (5,744); 2009 (6,198); 2010 (7,573); 2011 (7,148). Base, Age 16 19: 2007 (2,413); 2008 (3,181); 2009 (3,525); 2010 (4,203); 2011 (4,171). Boys, older respondents and those in SEG AB were the most likely to have thought about the amount of debt they would be in by age 25 in each year between 2007 and Figure 6.5 (e) shows the greatest increase over time was among older respondents. Conversely, boys were also more likely than girls to have reported that they would have no future debt by age 25 in each year. Boys seemed to hold more decisive opinions about how they saw debt in their future, whereas a higher proportion of girls reported that they did not know if debt would play a role in their future (64% in 2010, and 68% in 2011). RBS MoneySense Research Panel Report

154 Figure 6.5 (f): Percentage who thought they would not have any debt at age 25, by country Base, England: 2007 (5,849); 2008 (7,752); 2009 (8,465); 2010 (10,240); 2011 (9,690) Base, Wales: 2007 (339); 2008 (447); 2009 (481); 2010 (584); 2011 (641) Base, Scotland: 2007 (547); 2008 (726); 2009 (778); 2010 (949); 2011 (986) From 2008, fewer respondents in Scotland had thought about the amount of debt they would be in at age 25 and more felt that they would not have any debt at all (Figure 6.5 (f)). When looking at the specific amount of debt that the young people who gave a figure envisaged they would have at age 25, the proportion who reported debt below 1,000 or between 10,000 and 100,000 increased across all groups between 2007 and 2011, most notably within the higher debt category. Anticipated debt between 1,000 and 10,000 or above 100,000 therefore decreased. Older respondents and those in SEG AB were the most likely to predict debt over 10,000 in every year. Younger respondents and those in SEG DE were most likely to anticipate debt up to 1,000. Figure 6.5 (g) shows the proportions anticipating different levels of debt in 2007 and 2011 by age. RBS MoneySense Research Panel Report

155 Figure 6.5 (g): Amount of debt young people thought they would be in at age 25, 2007 and 2011 by age group Age in 2007 Age in 2007 Age in 2011 Age in 2011 Base, Age 12 15: 2007 (757); 2011 (1,323). Base, Age 16 19: 2007 (564); 2011 (1,298). Over the four years between 2007 and 2011, an increasing proportion of young people either worried about money or did not know if they worried about money and a decreasing proportion did not worry about money. RBS MoneySense Research Panel Report

156 Figure 6.5 (h): Percentage not worried about having a lot of future debt, by gender and age group Base, Boys: 2007 (3,367); 2008 (4,456); 2009 (4,846); 2010 (5,870); 2011 (5,656). Base, Girls: 2007 (3,369); 2008 (4,469); 2009 (4,878); 2010 (5,905); 2011 (5,663). Base, Age 12 15: 2007 (4,321); 2008 (5,765); 2009 (6,233); 2010 (7,626); 2011 (7,178). Base, Age 16 19: 2007 (2,414); 2008 (3,202); 2009 (3,542); 2010 (4,226); 2011 (4,179). Figure 6.5 (h) shows a year-on-year decline in the proportion of young people who did not worry across all groups, with the sharpest decline occurring between 2009 and Those most likely not to worry in each year were boys, and the least likely not to worry were girls. The biggest decline in the proportion who did not worry was among respondents in SEG AB. For those worried about being in a lot of debt in the future, credit cards and having a bank loan were the types of debt that most young people worried about in each year between 2009 and Around a third worried about each of these the most. A student loan and an overdraft were the next most worried about. Just 3% worried about debt to a family member or a friend, and a further 3% were not worried about any of these debts. Girls worried more than boys about credit card debt (36% to 30% in 2009; 36% to 33% in 2011) or having a student loan (15% to 11% in 2009; 21% to 16% in 2011); boys were more worried about a bank loan (39% to 30% in 2009; 33% to 29% in 2011). In terms of age, older respondents were also more worried about credit card debt, but differences were most pronounced for student loans (18% to 10% in 2009; 25% to 15% in 2011). Younger respondents were more worried about RBS MoneySense Research Panel Report

157 having a bank loan, although differences had narrowed over time (37% to 29% in 2009; 32% to 29% in 2011). Figure 6.5 (i): Percentage worried about having a student loan, by country Base, England: 2009 (5,377); 2010 (6,981); 2011 (6,628) Base, Wales: 2009 (323); 2010 (411); 2011 (456) Base, Scotland: 2009 (479); 2010 (569); 2011 (620) Figure 6.5 (i) shows that respondents in England were more worried about having a student loan, and that differences between countries had increased over time. Twice as many respondents in England were worried about a student loan in 2011 than in Scotland. More respondents in SEG AB were also worried about a student loan (15% of ABs, and 13% of Cs and DE in 2009; 23% of ABs, 19% of Cs and 16% of DEs in 2011). Respondents in 2010 and 2011 who knew what debt was were asked how they felt about debt, and to select from five statements. More younger than older respondents (13% to 6% in 2010; 15% to 7% in 2011) and those in SEG DE responded that they did not know how they felt about debt, with differences increasing slightly over time (8% of ABs, and 11% of Cs and DEs in 2010; 8% of ABs, 12% of Cs and 14% of DEs in 2011). Younger respondents were also more likely to feel that getting into debt could lead to bankruptcy (15% compared with 11% of those aged in 2010; 15% compared with 10% of those aged in 2011). Only 2 3% of respondents in all groups felt that it doesn t matter if you get into lots of debt because you ll pay it off yourself eventually, whereas around four in 10 felt that I would not like to get into any debt. Differences were slight across groups, with the lowest level of agreement at 39% for younger (age 12 15) respondents, and the highest at 44% for older (age 16 19) respondents in One in five of all respondents felt that getting into debt is to be expected but I RBS MoneySense Research Panel Report

158 will try to not get into too much, but this was higher among older than younger respondents (26% to 17% in 2010; 25% to 17% in 2011), those in England (20% in 2011, compared with 16% in both Wales and Scotland) and in SEG AB (24% in 2011, compared with 20% of Cs and 17% of DEs) Attitudes to further education and related debt Young people were very positive about the qualifications they thought they would gain, with more than three quarters having or anticipating GCSEs, and around half anticipating tertiary education qualifications (degree, HNC/HND, master s degree or PhD). There was a rise in the proportion who thought they would get a GCSE or tertiary education qualification over the five-year period between 2007 and 2011, with the highest proportion often reported in 2009 before steadying or reducing slightly in 2010 and However, the 2011 level was always higher than that recorded in Figure 6.5 (j): Percentage who thought they would gain a tertiary level qualification, by gender and age group Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852). Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852). Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) The increase in expectations for gaining GCSE or tertiary education qualifications was evident across most groups. However, Figure 6.5 (j) shows that the most substantial increases for anticipating tertiary education qualifications were among older respondents and girls (despite a 5% decline among older respondents in 2011). Understandably, in each year it was the younger respondents who were the least likely to think of themselves achieving tertiary education qualifications. RBS MoneySense Research Panel Report

159 Figure 6.5 (k): Percentage who thought they would gain a tertiary level qualification, by SEG Base, SEG AB: 2007 (1,488); 2008 (1,995); 2009 (2,163); 2010 (2,633); 2011 (2,534). Base, SEG C: 2007 (3,078); 2008 (4,128); 2009 (4,473); 2010 (5,447); 2011 (5,243). Base, SEG DE: 2007 (2,306); 2008 (3,090); 2009 (3,349); 2010 (4,078); 2011 (3,926). Respondents in SEG AB were also the most likely to have expected to achieve GCSE or tertiary education qualifications in each year. The proportion who thought that they would gain a tertiary level qualification increased over time in groups AB and C, but declined in 2011 from a high in 2010 among those in group DE, almost returning to the low level recorded in 2007 (Figure 6.5 (k)). Among those who thought they would gain tertiary education qualifications, anticipated levels of debt following time spent studying at university was explored. The overall proportion of young people who did not anticipate debt following university was 6% in 2007, declining to 3% in The proportion who did not know what level of debt they might have declined from a high of 23% in 2008, before stabilising at 17% from There was a big change in the amount of anticipated debt following university in Between 2007 and 2010, there was a year-on-year increase in the proportion of young people anticipating debt in excess of 10,000, 20,000 and 30,000. However, in 2011 there was a decline in the proportion who felt they would have debt in excess of 10,000 and a substantial increase in the proportion anticipating more than 30,000 in debt at the end of their studies. RBS MoneySense Research Panel Report

160 Figure 6.5 (l): Percentage who anticipated 30,000+ debt after their time at university, by gender and age group Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852) Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852) Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) This pattern of change was apparent across all age, gender and socio-economic groups. Older respondents (age 16 19) were the most likely to anticipate debt in excess of 30,000 (Figure 6.5 (l)) following their time at university. The other notable difference was by country: the percentage anticipating 30,000+ debt increased from 8% in 2007 to 33% in 2011 in England, whereas the increase in Scotland was 4% to 8% and from 6% to 12% in Wales (Figure 6.5 (m)). RBS MoneySense Research Panel Report

161 Figure 6.5 (m): Percentage who anticipated 30,000+ debt after their time at university, by country Base, England: 2007 (3,144); 2008 (4,158); 2009 (4,922); 2010 (6,160); 2011 (5,724) Base, Wales: 2007 (164); 2008 (195); 2009 (205); 2010 (274); 2011 (345) Base, Scotland: 2007 (312); 2008 (414); 2009 (436); 2010 (449); 2011 (493) 6.6 Learning about money Attitudes towards financial literacy There was a slight decline in the proportion of young people who thought they knew more about managing their money than one year ago over the five-year period between 2007 and 2011 (from 69% to 66%). This was the case across all groups by gender, age and SEG. More older than younger respondents felt they knew more about managing money in each year, though again the gap was at its narrowest in 2010 (65% to 66%). Looking across socio-economic groups, respondents in SEG AB were the most likely to report they knew more about managing money in each year, and those in SEG DE were the least likely in each year. (72% of ABs, 70% of Cs and 67% of DEs reported that they knew more in 2007; with 70% of ABs, 66% of Cs and 64% of DEs reporting this in 2011.) In each year, around 18% of all young people did not learn how to manage their money at home or school. There was, however, some evidence from the data that more young people were learning about how to manage their money at school, or both at school and home, over time (41% in 2008; 46% in 2011). However, a greater proportion still learnt at home, or both at school and home (71% in 2008; 67% 2011). Younger respondents were more likely than older respondents to say they had been taught about managing money at school (42% compared with 38% in 2008; 49% compared with 43% in 2011). An increasing proportion of older respondents reported that they did not learn about how to manage their money at all (21% of RBS MoneySense Research Panel Report

162 16 19-year-olds, compared with 17% of year-olds in most years). More boys learnt at school only (13% compared with 8% of girls in 2008; 16% compared with 11% of girls in 2011), and more girls learnt at home only, though the gap had narrowed over time (45% to 37% in 2008; 36% to 35% in 2011). Around four in ten young people in each year between 2008 and 2011 felt that they should have more lessons in school to do with money management, with more girls than boys thinking this, and more of those in SEG AB. In 2009, 44% of those in SEG AB, 39% in C and 37% in DE wanted more money management lessons in school. In 2011 the equivalent figures were 45% for ABs, 40% for Cs and 35% for DEs. In 2010 and 2011, young people were asked if they had learnt about how to manage their money from other sources, not including home or school. A third mentioned another family member, just under a quarter a friend (more so in SEG DE in both years: 24% of DEs, compared with 21% of Cs and 20% of ABs in 2011), and 16% learnt from the TV or radio. The latter was slightly higher among those in SEG AB (17% of ABs, compared with 16% of Cs and 14% DEs in 2011). More than a third had not learnt about money management from any other source, and this was higher among girls than boys (37% to 34% 2010; 39% to 37% in 2011), older respondents compared with younger (39% to 34% in 2010; 42% to 36% in 2011) and those in SEG DE compared with ABs and Cs (37% to 34% in 2010; 40% to 35% in 2011). Respondents in 2010 and 2011 were also asked how important it was for them to learn about managing money. Encouragingly just 5 6% did not think it was important and a further 5% did not know in each year. There was also a shift from quite to very important, with this being apparent across all age, gender and socio-economic groups. In 2010, 37% of all respondents thought learning about money management was quite important and 51% very important. In 2011, the corresponding figures were 31% for quite and 59% for very. 6.7 Financial aspirations Attitudes towards future earnings Young people were asked how much they expected to earn when they had just finished their university education, at age 25, and at age 35. More than half of respondents highest at 71% among girls in did not know and so did not give any anticipated earnings for any of the three life stages. For those who did have an idea about their future earnings, the proportion who expected to earn more than 10,000, 20,000 or 30,000 increased year-on-year between 2007 and RBS MoneySense Research Panel Report

163 Figure 6.7 (a): Percentage who expected to earn 20,000+ by age 25, by gender and age group Base, Boys: 2007 (1,898); 2008 (2,425); 2009 (2,781); 2010 (2,813); 2011 (2,655). Base, Girls: 2007 (1,169); 2008 (1,695); 2009 (1,895); 2010 (1,923); 2011 (1,788). Base, Age 12 15: 2007 (1,937); 2008 (2,635); 2009 (2,938); 2010 (2,919); 2011 (2,674). Base, Age 16 19: 2007 (1,130); 2008 (1,486); 2009 (1,738); 2010 (1,818); 2011 (1,769). Boys and older respondents were the most likely to expect to be earning more than 20,000 when they had just finished their education, at age 25 (Figure 6.7 (a)), and at age 35. The gender gap in expected future earnings decreased from For example, 62% of boys and 46% of girls expected to be earning 20,000+ by age 35, compared with 79% and 70% in A higher proportion of older than younger respondents also expected to be earning 20,000+ or 30,000+ at each projected life stage. Respondents in SEG AB were also the most likely to anticipate 20,000+ or 30,000+ earnings in each year, and those in group DE were the least likely. The gap between SEGs was widest in RBS MoneySense Research Panel Report

164 Figure 6.7 (b): Percentage who expected to earn 30,000+ by age 35, by SEG Base, SEG AB: 2007 (704); 2008 (938); 2009 (1,092); 2010 (1,131); 2011 (1,049). Base, SEG C: 2007 (1,340); 2008 (1,753); 2009 (2,010); 2010 (1,916); 2011 (1,939). Base, SEG DE: 2007 (1,035); 2008 (1,351); 2009 (1,522); 2010 (1,544); 2011 (1,357). In 2007, 45% of respondents in SEGs AB and C anticipated earning 30,000+ when they were 35, compared with 39% of DE respondents. In 2011, the proportions had increased in all SEGs and were now 68% of ABs, 59% of Cs and 49% of DEs Attitudes towards leaving home and buying their first home Around two thirds of all respondents in each year expected to have left home by age 21, and more than 85% by age 25. In 2011, 92% of respondents expected to have left home by age 30. RBS MoneySense Research Panel Report

165 Figure 6.7 (c): Percentage who expected to have left home by age 21 and bought their own home by age 25, by age Base, Boys: 2007 (3,436); 2008 (4,607); 2009 (4,992); 2010 (6,080); 2011 (5,852) Base, Girls: 2007 (3,436); 2008 (4,607); 2009 (4,993); 2010 (6,080); 2011 (5,852) Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) In each year, it was the older respondents who were by far the least likely to have expected to have left home by age 21 (Figure 6.7 (c)), reflecting the reality of the relatively short gap in time before they reached 21 years of age. The proportion of older respondents who expected to have left home by age 21 increased sharply in 2009 before dropping substantially in 2010 and increasing very slightly in Fewer than 20% of young people in each year expected to have bought their own home by the time they were 21, as did more than 50% of young people in each year by age 25 (this was lowest at 53% in 2010). More than 80% of young people in each year expected to have bought their own home by age 30. Respondents living in England were the least likely to expect to have bought their home by age 21, 25 or 30, though differences had reduced by age 30. Those living in Wales were most likely to think they would have bought a home by age 21 and 25 in 2007 and 2008, but from 2009 this position was taken by respondents in Scotland. (The figures were 62% in Wales, 58% in Scotland and 56% in England for 2008; and 57% in Wales, 60% in Scotland and 54% in England for 2011.) There were no differences across socio-economic groups. Younger respondents were consistently the most likely to think they would have bought their own home by age 21 or age 25 (Figure 6.7 (c)), and older respondents year-on-year were the least likely to have expected to have bought RBS MoneySense Research Panel Report

166 their home before they were 30. Year-on-year, more girls than boys expected to have left home by age 21 (68% to 63% in 2007; 70% to 64% in 2011), and girls were also slightly more likely to expect to buy their home by age 25 (57% to 53% in 2011) Attitudes towards buying their first car Respondents were also asked about the age that they expected to have bought their first car. More boys than girls expected to have bought a car by age 21 (73% to 69% in 2007; 70% to 67% in 2011) in each year, but gender differences had disappeared by age 30, when 90% thought they would have bought a car. Again, older respondents were less likely than younger respondents to think that they would own a car by the time they were 21, 25 or 30. Figure 6.7 (d): Percentage who expected to have bought a car by age 21 or age 25, by age Base, Age 12 15: 2007 (4,416); 2008 (5,952); 2009 (6,407); 2010 (7,872); 2011 (7,465) Base, Age 16 19: 2007 (2,455); 2008 (3,261); 2009 (3,578); 2010 (4,287); 2011 (4,240) Among younger respondents the proportion who expected to have bought a car by age 21, 25 or 30 increased slightly over the five-year period, whereas Figure 6.7 (d) shows the proportion who expected to have bought a car by age 21 had decreased among older respondents. RBS MoneySense Research Panel Report

167 6.8 Summary The overall patterns and trends in the data over time were overwhelmingly apparent in all age, gender and socio-economic groups. If a proportion went up overall between 2007 and 2011, the proportion generally went up in all groups between 2007 and However, what differed in the data was the actual proportion of respondents within each group answering a question in a particular way. As we have observed, the disparity in proportions between gender, age, socio-economic group and country was often significant. There were clear trends across gender, age, socio-economic group and country. These trends are summarised below. Boys vs. Girls More boys than girls had a bank account in 2007 and 2008, but more girls had a bank account between 2009 and Girls were more likely to use formal tracking methods to keep an eye on their money, whereas more boys did not keep track of their money at all. More girls also knew what to do if they received a new credit or debit card from a bank. Girls were more likely to earn their own money and to feel that they did not have enough money, that it always went too quickly and that they needed more money to be happy. However, on average boys spent more money than girls, and proportionally far more of their money on technology. Girls were more likely to spend all of the money they had, with the largest proportion going on clothes. Boys were better at saving, and more boys saved all of their money. They were, however, more likely to think that no-one at home encouraged them to save. Boys were more likely to be saving for equipment or lessons for sport or other hobbies; girls for socialising with friends and clothes. More girls worried about money and thought that less would be available for both adults and themselves in the future. They seemed more aware of how adults felt, particularly that adults in their home were worried about money and that they watched what they spent. Girls were particularly worried about credit card debt and having a student loan, while more boys said that they would not get into debt and they were less likely to worry about any future debt they may get into. More girls anticipated gaining tertiary level qualifications and expected higher levels of post-university debt. Girls were more likely to see themselves leaving home by the time they were 21, but more boys thought they would have bought a car and a house at an earlier age than girls. Boys were also more likely to anticipate higher future earnings, though the gender gap has narrowed. Younger (12 15) vs. Older (16 19) Younger children were more likely to receive pocket money, and older respondents to earn their own money. However, the proportion of younger respondents receiving pocket money decreased over the five years, while the RBS MoneySense Research Panel Report

168 proportion for older respondents increased. Although the proportion of young people with a bank account declined in each year, far more of the older respondents had a bank account, and they had proportionately more of the money they received paid directly into their bank account. They were also more likely to keep track of their money formally. Older respondents received more, spent more and had made less of a reduction to the relative amount they spent between 2007 and 2011 than younger respondents. They were also more inclined to believe they needed more money to be happy and that their money went too quickly, although the proportion thinking this declined over the five years. Older respondents showed they had more financial awareness then younger children, and also that they were worried about money; more of the younger respondents did not know how they felt about debt. A greater proportion also discussed how much adults were spending on food and utilities in the home, and if there were any changes to the household finances. A greater proportion of the younger respondents saved money at home and felt encouraged to do so by their parents and grandparents; more of the older respondents saved money in a bank and felt it was important to save money for the future. Younger respondents were spending money on, and saving money for, music, technology and games; older respondents were saving and spending money on their friends and socialising, but the biggest increase was in the proportion saving for college and university. More of the older respondents understood that debt was more of a future reality, could correctly identify different types of financial transactions as being debt, and were particularly worried about future student loans. Far more of the older respondents anticipated achieving tertiary level qualifications, although there had been a decline in They were most likely to see post-university debt in excess of 30,000 and had a better grasp of future earning levels, when they were likely to be able to leave the parental home, and when they were likely to be able to buy a house or car in the future. Younger respondents were far more likely to see themselves leaving home and buying a house or car at a younger age than older respondents. Socio-economic groups: AB, C, DE Respondents in SEG AB showed the sharpest decline in proportions earning their own money over time, but were the most likely to have a bank account and to have a higher proportion of the money they received paid straight into their bank account. They also had most knowledge about what to do when a new credit or debit card was received. Those in SEG DE were the least likely to use formal methods to track their money, with the gap by SEG increasing. They also showed the biggest decline in the average amount of money spent in a month over time, expressed the most disagreement that they had enough money to spend, and the most agreement that money went too quickly. RBS MoneySense Research Panel Report

169 Respondents in SEG AB were the least likely to spend all of their money, and the most likely to save regularly and to be encouraged to save by an adult at home. Those in SEG DE were the least likely to save any part of their money in each year or to be encouraged to save by an adult in their home, but they were the most likely to save some money with an adult at home and the least likely to have money paid straight into their bank account. Respondents in SEG AB knew more about managing their money and also wanted more lessons in school than they currently received on money management. Fewer respondents in SEG AB talked with adults in their home about what was spent on either food or utility bills; more young people in SEG DE thought the adults in their home were spending more money and that less would be available in the future for both adults and themselves to spend. They worried the most about money, but increasing proportions of AB respondents also worried over time, with student loans being a particular concern in AB respondents were most likely to have thought about the amount of debt they might have by the time they reached age 25, with DE respondents not knowing or thinking they would have debts of less than 1,000. More young people in SEG AB thought they would have debts in excess of 10,000 and that future debt was to be expected. More AB respondents saw GCSE and tertiary qualifications in their future, and DE respondents were the least likely to think that they would obtain tertiary qualifications, with proportions actually declining between 2010 and A higher proportion of young people in SEG AB anticipated post-university debt in excess of 30,000, but also post-university earnings of 20,000 or 30,000, at age 21, 25 or 35. Those in SEG DE were least likely to anticipate debt at this level, with the gap between SEGs being widest in Country There were some notable differences between young people living in the three countries, with much related to being a student. More young people in England and Wales were saving for college and university, with an increased gap in comparison with Scotland in 2011, where more young people were saving for a holiday. More respondents in England were worried about having a student loan, and thought that getting into debt in the future was to be expected. Fewer young people in Scotland identified a student loan as a debt. There was a steady increase in the proportion of young people in England who expected to have a 30,000+ debt after university between 2007 and 2010, but this increased massively in The comparative increase in Scotland was very moderate. The amount of young people who had borrowed money was also up in England in 2011, and fewer young people in England expected to have bought their own home by the age of 21, 25 or even 30, though the gap had narrowed considerably by this point. The biggest increase in saving for the future was observed among young people living in Wales; the biggest increase in not saving any money was among young RBS MoneySense Research Panel Report

170 people in Scotland. The proportion receiving pocket money had decreased and the proportion earning money had increased in Wales, where young people were increasingly worried about money. The steady decline in the proportion of young people using formal methods to keep track of their money was also most apparent in Wales, although a higher proportion had a bank account in 2011 than in 2007, which resulted in little differentiation between countries. The proportion who worried about money had actually declined somewhat in Scotland, as did the proportion who thought that adults in their home worried about money. They were, however, the least likely to talk about different aspects of household money with adults in their home. Although the proportion that thought they would have no debt in the future declined among young people in all three countries, this was observed the least among those in Scotland where the highest proportion also felt they would have no debt at all by age 25. RBS MoneySense Research Panel Report

171 7. Test and control findings This section explores the differences between the RBS test group and the control group. 7.1 Background In order to test the impact of the MoneySense programme, teachers were recruited to administer the survey to their students according to the following criteria: Test: Students who had received at least two MoneySense lessons within the past two years (either led by their teacher or by an RBS/NatWest coach). Control: Students who had not received at least two MoneySense lessons within the past two years, but may have used other personal finance education (PFE) resources. 7.2 Sample profile The data reported is a combination of pupils who completed the survey in 2009, 2010 and Owing to the smaller population of students in Years 12 and 13 (S5 and S6 in Scotland), and the fact that the test group needed to have received a minimum of two MoneySense lessons, a comparable sample between test and control groups could not be found for this age group. Therefore, the data shown in the test and control analysis is based on students aged years who were in Years 8 11 (S1-S4 in Scotland) in Great Britain. The data was weighted by gender, age, socio-economic status and region, to ensure that the two groups were comparable. The following tables show the breakdown of the sample by region, age, social group and gender. RBS MoneySense Research Panel Report

172 Figure Test and control sample: Region Single response. Base: All pupils aged in 2009, 2010 and 2011 (28,934) Test Control Unweighted Base 14,687 14,247 North West 11% 10% North East 7% 8% Yorkshire 8% 8% West Midlands 9% 9% East Midlands 10% 9% East of England 7% 8% South West 10% 11% South East 11% 16% London 14% 8% Wales 5% 5% Scotland 7% 8% Figure Test and control sample: Age Single response. Base: All pupils aged in 2009, 2010 and 2011 (28,934) Test Control Unweighted base 14,687 14, % 20% 13 26% 25% 14 25% 25% 15 24% 25% 16 5% 5% Figure Test and control sample: Social group Single response. Base: All pupils aged in 2009, 2010 and 2011 (28,934) Test Control Unweighted base 14,687 14,247 AB 22% 22% C 45% 45% DE 34% 34% Figure Test and control sample: Gender Single response. Base: All pupils aged in 2009, 2010 and 2011 (28,934) Test Control Unweighted base 14,687 14,247 Male 50% 50% Female 50% 50% 7.3 Findings Receiving money Pupils in the RBS test group were more likely to receive pocket money than those in the control group (63% compared with 61%). The control group were RBS MoneySense Research Panel Report

173 seen to be more likely than test pupils to receive money from a part-time job, or through selling things (significantly higher by 1% for both activities). They were also more likely receive money from an adult at home (63% compared with 61%) or from another family member (38% compared with 37%). Young people in the test group were more likely to report having a bank account than those in the control group (68% compared with 67%) although pupils in both groups were seen to receive a similar monthly income ( 57). Test group pupils were more likely to have bills paid for their phone (4% compared with 3%), while young people in the control group were more likely to receive money as cash (90% compared with 88%) or as mobile top-up credit (26% compared with 23%). Control group pupils were more likely to report that they were now receiving less pocket money than then had one year ago (14% compared with 12% in the test group). Test group pupils, on the other hand, were more likely to say that their allowance had stayed the same (38% compared with 37% in the control group) Keeping track of their money When asked how they keep track of the money that they have spent, young people in the test group were more likely than those in the control group to report checking their bank balance regularly (19% compared with 18%), reading their bank statement (17% compared with 15%) or printing a mini-statement from the ATM (10% compared with 9%). While these differences may appear small, these differences have been subject to significance testing and proven to be statistically significant, 25 showing that pupils who had used the MoneySense programme appeared more active in using the above methods to keep track of their finances. MoneySense pupils who took part in the qualitative interviews also indicated that they were familiar with keeping track of the money that they put into their bank accounts. I ve got a bank book that tells me how much money goes in and comes out. [Oliver, 13 London] Teachers that we spoke to who had been involved in the MoneySense programme in their school also provided positive feedback regarding the lesson that concerns checking account balances. Yes they really particularly like the one where they come up with the ATM and they go and put their card in, because you even have to put your card in a set way. It teaches them about the PIN number and they can see their money, because a lot of them thought you had to go to the bank. [Michelle, Business Education Teacher, Scotland] 25 Differences are reported at the 95% confidence level, i.e. with 95% confidence that the result exists within the population. RBS MoneySense Research Panel Report

174 7.3.3 Knowledge of credit and debit cards and debt Young people were asked to demonstrate their understanding of some financial terms and services, including what a PIN is. Test group pupils were more likely than those in the control group to correctly identify a PIN as a personal identification number (33% compared with 27%) and were also more likely than test group pupils to select all of the correct answers from the options provided (13% compared with 11%). Control group pupils were more likely to correctly identify that a PIN has four figures (68% compared with 67%). However, they were also more likely to select incorrect options; that a PIN is a credit card number (37% compared with 34%), or that it is a bank account number (34% compared with 31%). Pupils who took part in the qualitative groups also demonstrated an understanding that they should try to keep their PIN number secure. [I learnt] how to use the ATM when you re older and how to be safe and keep your PIN number from other people who could be looking over your shoulder to get your PIN. [Jack, 13, Scotland] When asked what action they should take when they received a new credit or debit card, a higher proportion of young people in the control group appeared less clear. 8% claimed that they did not know, compared with 7% of test group pupils. Young people who took part in the survey were also asked to indicate what they should consider when taking out a loan. Test group pupils were more likely to identify that it was very important to consider the amount of money that they needed (41% compared with 39%). Interestingly, test group pupils were also more likely to claim that it was very important to borrow as much as they could (9% compared with 8%) and that it was not at all important to consider how much they could afford to pay back (1% compared with 0%), indicating that borrowing money should remain an important focus for future MoneySense lessons. Control group pupils were less confident in approaching this question, being more likely to select that they did not know whether they should consider borrowing as much as they could (18% compared with 16%) or the APR they were offered (35% compared with 32%). This group were also more likely to feel that it was quite important to consider the amount of money that they needed (37% compared with 35%). Pupils were also asked to indicate which of three loan terms (12, 24 or 36 months) would be the most expensive to pay back at an APR of 15%. Control group pupils were more likely to indicate that they did not know (51% compared RBS MoneySense Research Panel Report

175 with 47%), while test group pupils were more likely to select the correct answer of 36 months (32% compared with 29%), or to a lesser extent, to select 12 months (15% compared with 14%) Spending While differences in spending in the previous month were seen to be slight, test group pupils did spend more on sports and hobbies (activities and equipment), spending 13 compared with the average control group figure of 11. In contrast, control group pupils were more likely than those in the test group to spend a higher amount (over 51) on technology (10% compared with 9%). Pupils in the qualitative groups explained how using the MoneySense activities had helped them to develop their budgeting skills. The first time I tried the interactive thing on the website for budgeting, I spent all the money. Miss told me to do it again, to get a better one. When I d done it, I had quite a bit of money left. [Nathan, 13, Manchester] You need to know how much you re making. You need to know how much you can spend. [Alison, 12, London] Saving Control group pupils were more likely that those in the test group to claim that they had saved most of the money that they had received in the previous month (21% compared with 19%). They were also more likely to claim that they now save more money than they used to (63% compared with 62%). In terms of where this money is saved, control group pupils used a range of methods and were more likely than those in the test group to save money by keeping it at home (68% compared with 65%) or in a piggy bank (3% compared with 2%). Test group pupils were more likely to report saving their money in a bank or building society (49% compared with 47%). Those in the test group appeared more likely to receive encouragement to save. Test group pupils were more likely than those in the control group to claim that their teachers or people in the media encouraged their saving (a difference of 2% and 1% respectively). Young people in the control group appeared more likely to receive encouragement from grandparents (33% compared with 31%). Test group pupils showed a positive attitude towards their own saving, and were more likely than those in the control group to agree strongly with the statement I think I m good at saving money (14% compared with 13%). They were also more likely to disagree with the statement I find it difficult to save money (43% compared with 42%). RBS MoneySense Research Panel Report

176 Pupils who had received MoneySense lessons and participated in the qualitative interviews often said that they felt that saving was important. Because if you did not have any money, if you did not have anything saved up, if something happened and you needed to buy something, you would not be able to buy it. [Kirsten, 14, Scotland] MoneySense pupils from the qualitative interviews also indicated that the MoneySense lessons had helped them to realise the importance of saving. You learn that it s quite important to save up money because if you don t have money when you re older, you could be in quite a lot of trouble, and you learn about budgeting. [Nimrah, 13, Scotland] Level of concern about money Some differences could be seen in the level of concern that young people had about money. Pupils who had received MoneySense lessons were more likely to disagree (but not strongly disagree) with the statement Money worries me (28% compared with 27%). In addition, those in the control group were more likely to be indifferent about the importance of having their own money (14% compared with 12%). Pupils who had received MoneySense lessons appeared to have a broader understanding of the term debt. This group were more likely to consider owing money to family and friends as debt than control group pupils (a 2% difference). Pupils we spoke to in the qualitative research also demonstrated a broad understanding of the term debt. Alison, 12, London: Interviewer: Alison: I think debt can vary. It can be anything. It could be owing someone 50 pence or owing someone 50,000. Do you see both of those amounts as debt? Yes. You still owe someone money. And it doesn t have to always be money. You could owe them something else. Pupils who had not received MoneySense lessons were less worried about getting into a lot of debt in the future; 28% of these pupils claimed that they were not worried, while 26% of the test group claimed this. In terms of their attitudes to debt, young people in the test group were more likely to feel that getting into debt was to be expected, but that they would try not to get into too much (17% compared with 16%), while control group pupils were more likely to select don t RBS MoneySense Research Panel Report

177 know when asked to respond to a range of attitudinal statements concerning debt (14% compared with 13%). Some of the MoneySense pupils that we spoke to in the qualitative interviews also reported that debt needn t necessarily be a cause for concern if handled sensibly. These young people demonstrated a pragmatic approach to the idea of being in debt in the future. It s natural for people. It s going to come up. People expect to get into debt some time in their lives. [Nathan, 13, Manchester] Among those who considered that they knew what debt was, pupils in the control group were more likely to consider 5,000 to be a lot of debt (57% compared with 55%). When asked to consider the amount of debt that they anticipated that they might have at 25 years old, control group pupils were more likely than those in the test group to select that they would have none (18% compared with 16%). Among those who provided a suggested figure for their anticipated debt, control group pupils were more likely to provide a number within the range of 101 and Future expectations Those in the RBS test group were more likely than the control group to think that they will have the same amount of money to spend in a year s time (33% compared with 32%). Those in the control groups appeared slightly more polarised in their views; they were more likely overall to expect that there would be more money for both them and for adults at home to spend in a year s time (19% compared with 18% of the test group). However, at an overall level, they were also more likely to feel that there would be less money for both them and for the adults at home to spend (16% compared with 15%). When asked whether the adults in their house were spending more, less or the same on a list of items over the last year, pupils in the test group were more likely to claim that the adults in their homes were spending less on food, and activities or trips (a 1% difference), and more on holidays (26% compared with 24%). Those in the control group indicated that the adults in their homes had been spending more on utilities in the last year (37% compared with 36%) Those in the test group were more likely to report that the adults at home felt that they now had to watch what they spent (51% compared with 49%), while those in the control group were more likely to claim that the adults at home spent less on themselves than on their children (42% compared with 41%). Control group pupils were also more likely to report that adults at home spoke to them about saving money for their future (20% compared with 19%). RBS MoneySense Research Panel Report

178 In terms of pupils expectations surrounding qualifications and careers, test group pupils were more likely than those in the control group to expect to achieve A levels (58% compared with 55%), a university degree (46% compared with 43%), a master s degree (17% compared with 15%) or a PhD (12% compared with 11%). Young people in the control group were more likely to expect to achieve BTEC/National qualifications (26% compared with 22%), NVQs (10% compared with 9%), Highers (5% compared with 4%) or to be unsure (14% compared with 13%). Among those pupils who expected that they would attend university, young people in the test group were more likely to think that they might owe between 10,001 and 15,000 when they had finished their course. Those in the control group were more likely to think that they would owe a higher amount (over 20,000; 27% compared with 25%). Regarding when they expected to pay this money back, the control group appeared less clear on this aspect, being more likely to state that they hadn t thought about it (21% compared with 19%). They were also more likely than the test group to indicate that they would never expect to start paying this money back (2% compared with 1%). Pupils who took part in qualitative groups often demonstrated that they were thinking ahead regarding the debts that they might acquire at university. For some of these pupils, saving money was important in order to help to reduce student debt. If you want to go to university it costs a lot of money. Sometimes you have to take out a student loan. You have to save up for that. [Callum, 13, London] With the student loan [ ] I m not going to uni this year coming, I m going the year after, so I m thinking in the next year to just literally save practically a student loan so then I don t [ ] I won t be in debt, if you know what I mean. Save a decent amount. So then I can pay that off straight away, and then just have less to worry about. [Felicity, 18, Cardiff] Perhaps related to the fact that they felt that they were less likely to go to university, pupils in the control group expected to leave home before pupils in the test group; 71% expected to have left home by age 21, compared with 70% of test group pupils. In terms of expected future salaries, no differences were seen in the average salary that pupils in the test and control groups expected to earn when they finished their education, at age 25, and at age 35. Test group and control group pupils were also asked to indicate the average salaries that they thought various professions received. The mean amounts provided at this question were again seen to be similar for both groups, although the average salary that test group pupils estimated teachers to earn was higher than that estimated by control group pupils ( 28,700 compared with 26,100). RBS MoneySense Research Panel Report

179 Pupils were asked to consider what future career they aspired to. Test groups pupils were more likely to aspire to become business professionals (4% compared with 3%) or product and clothing designers (3% compared with 2%). Control group pupils were more likely to hope to be medical practitioners or doctors (6% compared with 5%), to work with children (2% compared with 1%), or to be pharmacists (1% compared with 0%). When asked if they expected to own their own business in the future, control group pupils were more likely that test group pupils to say that they would not (34% compared with 33%). MoneySense pupils that we spoke to also demonstrated that they were aware of the complexities of starting a business and that they had learnt about this through the MoneySense programme. It teaches you how hard it is to set up a business, running it all, and what resources you need. [Oliver, 13, London] There were also some differences in the industries that these businesses would be focused on. Among those who felt that they would own their own business, control group pupils were more likely to report that their businesses would concern hair and beauty (10% compared with 8%), while test group pupils were more likely to report that their businesses would focus on the automotive industry (3% compared with 2%), or that they were not sure (10% compared with 7%). Some differences could also be seen between the two groups in the types of financial services and products that young people expected to need in their futures. While control group pupils were more likely to think that they would need a bank account (possibly because they were less likely than the test group to already have one), savings, insurance or a credit card (each with a difference of 3% compared with the test group), those in the test group were more likely to think that they would need an overdraft (14% compared with 12%) Learning about managing money Young people in the test group were more likely to claim that they had learnt about money management at school, or both at home and at school. Those in the control group were more likely to have learnt about money management at home only, or not to have learnt about it from either place. Figure shows the weighted responses to this question (bold text indicates significant differences). RBS MoneySense Research Panel Report

180 Figure In the last year, have you learnt about how to manage your money at school or from someone at home? Base: All test and control in 2009, 2010 and 2011 Test Control Unweighted base 14,687 14,247 At home 30% 39% School and home 37% 32% At school 19% 11% Neither school nor home 14% 18% At school (combined) 56% 43% Young people were also asked to indicate more specifically which sources they had learnt money management from (respondents were shown a list of options). The test group indicated that they had learnt this from a range of sources, and they were more likely to recall learning how to manage their money from TV and radio (17% compared with 16%), their school or teacher, the Natwest and RBS websites, and the MoneySense website. Pupils in the control group were more likely to recall learning from the BBC website (1% compared with 0%). They were also more likely to answer that they had not learnt how to manage their money from any of these sources (36% compared with 34%). When asked who they felt the best person was to teach them about money, control group pupils were more likely to select my parents (75% compared with 70%), while those who had received MoneySense lessons were more likely to select my teacher (26% compared with 20%). Both the test and control groups were equally likely to feel that it was important for them to learn about money (88%). However, control group pupils appeared more polarised than test group pupils in their views regarding whether they felt they should have more lessons on money management. While those pupils who had received MoneySense lessons were more likely than control group pupils to say that they wanted the same amount of lessons in the future (50% compared with 47%), control group pupils were more likely to say that they wanted more (39% compared with 37%), or that they wanted less (14% compared with 13%). Pupils who took part in the qualitative groups indicated that they felt money management was an important topic for them to learn about. The two pupils below both emphasised the importance of learning about money in order to help them in the future. I think it s important, because if you don t know about money, the future is unsure. You might end up spending it all. [Kahiem, 13, Manchester] [ ] you need to know something about money to get through life, because money s a big thing in life. [Lewis, 13, Scotland] RBS MoneySense Research Panel Report

181 7.3.9 Conclusion Comparing the results from the test and control samples indicates that taking part in at least two MoneySense for Schools lessons can help to develop young people s understanding of, and attitudes towards, personal finance. Young people who had received lessons using the MoneySense for Schools website were more likely to keep track of their money by checking their bank balances and to show a positive attitude towards their own ability to save. They were also more likely than those who had not taken part in MoneySense lessons to be able to correctly identify what a PIN was. Perhaps as a result of their understanding of financial processes and services, pupils who had received MoneySense lessons were also more likely to disagree that money worries them. RBS MoneySense Research Panel Report

182 7.4 Test and control: Northern Ireland This section explores the differences between the RBS test group and the control group among pupils in Northern Ireland Background In order to test the impact of the MoneySense programme, teachers were recruited to administer the survey to their students according to the following criteria: Test: Students in Northern Ireland who had received at least two MoneySense lessons within the past two years (either led by their teacher or by an RBS/NatWest coach). Control: Students in Northern Ireland who had not received at least two MoneySense lessons within the past two years, but may have used other personal finance education (PFE) resources Sample profile The data reported includes pupils in Northern Ireland who completed the survey in Owing to the smaller population of students in Years 12 and 13, and the fact that the test group needed to have received a minimum of two MoneySense lessons, a comparable sample between test and control groups could not be found for this age group. Therefore, the data shown in the test and control analysis is based on students aged who were in Years 9 14 in Northern Ireland. The data was weighted by gender, age and socio-economic status, to ensure that the two groups were comparable. The following tables show the breakdown of the sample by age, social group and gender. RBS MoneySense Research Panel Report

183 Figure (a) Test and control sample: Age Single response. Base: All pupils aged in 2009 in Northern Ireland in 2011 (757) Test Control Unweighted base % 14% 13 23% 27% 14 23% 25% 15 24% 23% 16 12% 11% Figure (b) Test and control sample: Social group Single response. Base: All pupils aged in 2009 in Northern Ireland in 2011 (757) Test Control Unweighted base AB 17% 17% C 51% 51% DE 32% 32% Figure (c) Test and control sample: Gender Single response. Base: All pupils aged in 2009 in Northern Ireland in 2011 (757) Test Control Unweighted base Male 50% 50% Female 50% 50% RBS MoneySense Research Panel Report

184 7.4.3 Test and control: Northern Ireland findings Receiving money Pupils in the control group were more likely than those in the test group to receive money from an adult at home or through pocket money (90% compared with 85%). When asked how they received the money, control group pupils were more likely to claim to receive money relating to the cost of their phones. They were more likely to both receive mobile top-up credit (32% compared with 24%) and to have bills paid for their phones (8% compared with 2%) than pupils in the test group. This group were also more likely in general to claim to receive higher amounts each month in cash ( 50 compared with 42). In terms of pocket money, young people in the control group claimed to receive higher amounts from adults at home ( 34 compared with 27) and from grandparents ( 10 compared with 8). However, they were more likely than test group pupils to claim that they were now receiving the same amount of money as they were one year ago (43% compared with 34%), while test group pupils were more likely to be unsure (14% compared with 9%). Keeping track of their money Pupils in the test and control sample demonstrated no significant differences in how they kept track of their money, with 45% of test and 44% of control group pupils using one or more formal methods. However, an indicative (nonsignificant) difference could be seen in the percentage of test group pupils who claimed to keep receipts (40% compared with 34% of control group pupils). Knowledge of credit and debit cards, and loans When asked to indicate what a PIN number was (from a list of options), test group pupils were more likely to identify that this was a number with four figures (74% compared with 66%), while control group pupils were more likely to think that this number had eight figures (4% compared with 1%). Control group pupils were more likely to identify that a PIN is used with a debit card (50% compared with 40%). Overall, however, test group pupils were more likely to identify at least one correct answer from the listed options (92% compared with 87%). When asked what action they should take when receiving a new credit or debit card, no difference was seen in the percentage of test and control pupils who claimed that they should both sign the new card cut up their old one. However, control group pupils appeared more likely to understand that they should cut up their old card (56% compared with 49%), while test group pupils were more likely to be unsure (10% compared with 6%). Pupils were asked to indicate how important it is to consider a number of specified aspects when applying for a loan. Control group pupils were seen to be more likely to claim that it was quite important to consider the APR they were RBS MoneySense Research Panel Report

185 offered (28% compared with 21%), while test group pupils were more likely to claim that they did not know whether they should take this into consideration (42% compared with 33%). Control group pupils were also more likely to incorrectly identify 12 months as the most expensive duration for a loan with an APR of 15% (21% compared with 14%) when asked to choose from 12, 24 or 36 months. Spending When asked how much they had spent on items in various categories in the previous month, differences in average amounts spent between the test and control groups were seen to generally be slight. However, control group pupils were more likely to have spent more on average on music ( 3 compared with 2). Test group pupils were more likely to claim not to have spent any money on technology (60% compared with 51%) or music (82% compared with 75%), but were more likely to have spent a higher amount on food (2% compared with 0% of control group pupils claimed to have spent between 200 and 500 on food in the previous month). Those in the control group were more likely to claim not to have spent any money on activities and equipment for sports or hobbies (65% compared with 56%), while test group pupils were more likely to have spent between 1 and 25 on these items (36% compared with 25%). Saving Pupils were asked to indicate how much of their money they had saved over the previous month. Pupils in the RBS test group were more likely to claim to have saved most of their money (20% compared with 14% in the control group). They also appeared to be more likely to be saving without a specific item in mind, with 41% of this group claiming to be saving without yet knowing what for, compared with 32% of the control group. When asked where their money was saved, test group pupils were more likely to claim that they saved it in a piggy bank or money box at home (8% compared with 3%), while around one third of both groups claimed to keep their money in a bank of building society (34% of test group pupils compared with 36% of control group pupils no significant difference). Attitudes towards saving between the two groups were seen to be similar, although control group pupils were more likely to disagree with the statement that I find it difficult to save money (41% compared with 36%). While both groups appeared to receive similar levels of encouragement to save from a range of sources (e.g. parents), control group pupils were more likely to claim that their grandparents encouraged them to save (42% compared with 34%). RBS MoneySense Research Panel Report

186 Level of concern about money Pupils were asked to indicate their level of agreement with a range of attitudinal statements relating to money, so that we could better understand their attitudes and concerns around their finances. Test group pupils were more likely to claim to neither agree nor disagree that their money always goes too quickly (25% compared with 18%), and to also be indifferent to the idea that money worries them (38% compared with 29%). Control group pupils, on the other hand, were more likely to disagree (though not strongly) that money worried them (30% compared with 21%). When asked whether adults at home were spending more, less or the same amounts of money on various items than one year ago, control group pupils were more likely to claim that they were spending the same on food (49% compared with 41%). No differences could be seen in terms of the types of things that both groups considered to be debt (e.g. a mortgage, or owing money to a family member). However, test group pupils were more likely to anticipate having a higher average amount of debt when they were 25 years old ( 7,536 compared with 3,672 for control group pupils). Test group pupils were also more likely to consider 5,000 a lot of debt to get into (60% compared with 53%). No differences were seen in the percentages of test and control group pupils who claimed to worry about getting into debt in the future. Future expectations When asked if they expected themselves or the adults at home to have more or less money to spend next year, no differences were seen in the test and control group pupils expectations. While no differences were seen in the proportion of test and control group pupils who felt that they needed more money to be happy, among those who felt that they needed more money to be happy, the reasons for this differed. Test group pupils were more likely to want a better lifestyle (52% compared with 39%), while control group pupils were more likely to want to save for their future (57% compared with 39%), to save for university (37% compared with 23%) or to buy a car (39% compared with 16%). In terms of the expectations pupils held regarding their future qualifications and careers, RBS test group pupils were more likely to expect that they would not have any qualifications (4% compared with 0%), while test group pupils were more likely to expect to achieve diplomas (19% compared with 12%), BTECs or Nationals (16% compared with 11%), a PhD (10% compared with 3%), or a HNC or HND (5% compared with 2%). Control group pupils were also more likely to claim that they were not sure (12% compared with 7%). Among those who planned to go on to university, control group pupils were more likely to expect to owe up to 1,000 (including fees) upon finishing university (7% compared with 1% of the test group) while test group pupils were more likely to RBS MoneySense Research Panel Report

187 expect to owe between 30,001 and 50,000 (15% compared with 7% of the control group). However, no differences were seen in the time periods over which pupils expected to start paying this money back. When asked how much money they expected to earn when they had just finished their education, control group pupils were more likely to expect to earn between 20,001 and 30,000 (8% compared with 2% of the test group) while test group pupils were more likely to expect to earn less than 100 (20% compared with 9% of the control group). Pupils were also asked to indicate the salaries that they estimated a range of professions to earn per year, on average. The average figures provided by young people in the test and control groups were seen to be similar, although control group pupils were more likely to provide a significantly higher figure for computer programmers ( 64,700 compared with 30,000). In terms of the future career expectations, test group pupils were more likely to aspire to work in the armed forces (5% compared with 2%), to work as a primary teacher (5% compared with 1%), or to be a fitness instructor (3% compared with 0%). Control group pupils were more likely to want to be carpenters or joiners (3% compared with 0%), or scientists (2% compared with 0%). Some differences could also be seen in the times at which pupils expected to be able to embark upon key milestones such as buying a house. Control group pupils were more likely to think that they would buy a house between the ages of 19 and 21 (17% compared with 11%). Young people in the test group were more likely to be unsure of when they would have a family (10% compared with 6%). When asked if they expected to own their own business in the future, control group pupils were more likely to think that they would (39% compared with 29%), while test group pupils were more likely to be unsure (34% compared with 27%), although no differences were seen in the industries in which these pupils expected their businesses to be focused. In the qualitative interviews, pupils often demonstrated an awareness of the complexities that running a business may involve, which could explain why this group appeared to be more unsure about whether they would do this in the future. Don t rush into starting a business. Get plenty of advice and experience before you start your own business. Work for someone for a couple of years and then go out on your own business. [Michael, 15, Derrylin] Young people were also asked to consider the types of financial services that they expected to need in the future. Control group pupils were more likely to think that they would need a credit card (67% compared with 56%) and a mortgage (62% compared with 51%). RBS MoneySense Research Panel Report

188 Learning about managing money Young people in the RBS test group were more likely to claim to have learnt about money management at school than those in the test group (28% compared with 16%). Test group pupils were also more likely to claim that their teacher was the best person to teach them about managing their money (36% compared with 25%). Control group pupils were more likely to have learnt about money management at home only, and not school (31% compared with 24%), or to claim that they had not learnt about it either at home or at school (13% compared with 8%). No differences were seen in the percentages of test and control pupils who thought it was important for them to learn about managing their money, or in the number of lessons that pupils wanted to have in the future. Conclusion The findings from the test and control analysis indicate that participating in the MoneySense lessons can help to develop young people s understanding of money management. Pupils who had taken part in lessons using the resources were more likely to identify at least one correct answer relating to what a PIN is and were also more likely to know that old debit cards should be cut up when new ones are received. Pupils who had taken part in MoneySense lessons also demonstrated good saving habits, being more likely to have saved most of the money they had received in the last month and to practice saving as a matter of course, rather than with a specific item in mind. RBS MoneySense Research Panel Report

189 7.5 Qualitative impacts of the MoneySense programme We interviewed young people to find out more about how their use of the MoneySense programme. This section explores how the programme has impacted upon their attitudes and behaviours concerning personal finances Understanding the importance of money Many of the young people who took part in MoneySense interviews explained that the MoneySense lessons had helped them to think more carefully about their money. When asked to give advice to their peers about money, pupils demonstrated a sensible attitude towards money management, emphasising the importance of saving and understanding that there was a difference between essential and unnecessary expenditure. Save as much as you can because you can t rely on your parents, you need to open an account and get a job, start putting money in If you are going to buy something that will put you in debt, think if you could wait a tiny bit longer Start saving early and get a good head start. [Darren, 15, Derrylin] Cut down on their unnecessary expenditure [ ] Things they don t need really, to save more money. [Daire, 15, Castlebar] Learning how the financial system works Pupils spoke about learning a wide range of information through taking part in MoneySense lessons. One area in which young people appeared to have improved their confidence was in understanding how banks operated, both on a practical level (e.g. how one might use a bank branch) and on a more conceptual level (e.g. what an interest rate was). [MoneySense lessons] taught us something new because I did not know how to use the machines. Now if you walk into a bank, you won t look stupid asking, What do you do here? [Lewis, 13, Scotland] [ ] try and avoid getting a loan for something that you don t really need, if you need a loan getting the best rate of interest. [Gerald, 16, Castlebar] As was seen last year, the activity in which pupils used a virtual cash machine also remained popular and was seen to be enlightening by pupils, who spoke positively about what they had learnt. RBS MoneySense Research Panel Report

190 I did not know much about the ATM machine, I just thought you put your card in, press some buttons then get your money out, but you realise how it works. [Lewis, 13, Scotland] Understanding how businesses work One MoneySense lesson in particular which many pupils spoke positively about was about setting up their own business. Young people who took part in the qualitative interviews explained that learning about the various aspects that need to be considered when setting up a business had improved their understanding of how businesses operate as well as helping them to develop their own personal money management skills. We had a 1,000 budget. There were certain things we could have, and it showed us how much it would cost. To have a celebrity come along, it would cost 400, but to tell family and friends about it would not cost anything. So it taught us about budgeting, but also about profit and income. [Alison, 12, London] Discussing finance The young people that we spoke to varied in the amount that they spoke to adults at home about finances. While some pupils claimed to talk frequently with their parents about household finances, others indicated that they would like to do this more often. However, the MoneySense lessons were seen to encourage pupils to talk with their parents about money and spending. I kind of pay loads of attention to bills and stuff coming into my house. Usually my mum, like, shows me letters of her bills, and I do pay lots of attention because she says, One day you ll have to deal with this stuff, too. [Hamza, 18, Cardiff] The last time I talked to my mum [about finances] was after I d had my first lesson about money. [I said] I got an award. I said, I found out that money isn t that hard. [Nathan, 13, Manchester] Some pupils who took part in the qualitative interviews also indicated that they spoke to their parents about their own finances, with parents often keeping track of how much money they (the pupils) had left to spend. I ve only ten pounds on me right now, but I don t know how much I ve got in my bank, my mum knows that. [Aisha, 14, Scotland] As well as discussing finances at home, some of the teachers that we spoke to noted that, as a result of using the MoneySense materials, pupils were often RBS MoneySense Research Panel Report

191 encouraged to discuss finance within school, and to ask teachers for further information regarding financial processes and institutions. [ ] In terms of getting them to talk about finance as a topic of conversation, yes. They ll come up to me and ask about how businesses work and how banks work. [Using the materials] has certainly made it more of a topic of conversation. [Joe, Head of Every Child Matters Faculty, London] The lessons were also seen to encourage pupils to empathise more with their families financial situations, now that they felt that they were more aware of the different bills and taxes that their parents were likely to pay. It was interesting, because I knew a bit about it before, but then I understood it fully. Now I know how my mum and dad feel with managing their finances with tax bills and electricity bills, and what normal taxpayers have to pay. [Max, 12, London] Opening bank accounts After taking part in the MoneySense lessons, some pupils that we spoke to had decided to open their own bank account. Often this was related to pupils wanting to be more independent and gain ownership of their own money. I already had one [bank account] as well. I don t really use it. It s my mum and dad putting money in it for me for when I m older and when I leave, but I wanted to have one on my own so I opened one after the lessons with RBS. [Nimrah, 13, Scotland] One teacher also described how her class had all opened back accounts after a discussion concerning the fact that wages are usually paid into an account. My fourth years [ ] every single one of them opened an account, but that was the transition group. The reason they did it was because they thought they re going to leave school and none of them had a bank account. We spoke about, when we were sat working, that your wages get paid in the bank. [Michelle, Business Education Teacher, Scotland] Being a clever consumer Taking part in MoneySense lessons was seen to help pupils to understand how to make the most of their money, and how to understand exactly how much they have available to spend. RBS MoneySense Research Panel Report

192 We looked at tax on payslips, before you can even see how much money you have. [ Managing Your Money also taught me to] look around and see what else you can find. Look in different shops for the same thing, but cheaper. [Shannon, 15, Derrylin] Some pupils also demonstrated that they were able to see past advertising that encouraged them to order products in advance of payment. [Catalogues and clothes companies] offer you great deals and stuff. Buy now, pay later. That sounds attractive, and you think, Oh, I can save up the money to pay it back by then. In reality it never happens. [Courtney, 17, Cardiff] Conclusion A number of qualitative impacts of the programme could be seen. Pupils were seen to have increased confidence in dealing with the practical, day-to-day aspects of banking and some pupils had also begun talking to family members or school staff as a result of taking part in a MoneySense lesson. Pupils also demonstrated that they understood the value of money emphasising the need to save money and to reduce their spending on unnecessary items in order to ensure that they were in the best possible financial situation for their futures. RBS MoneySense Research Panel Report

193 8. Comparison between countries This section compares the findings from England, Scotland, Wales and Northern Ireland. The sample for the Republic of Ireland was not comparable by age group to the other countries, so it has not been included in this analysis. 8.1 Sample The data from each country was weighted to ensure comparability. The data for each country therefore comprises 50% boys and 50% girls. Countries were also weighted to contain the same proportion of young people in each year group. Despite this, Scotland had a slightly younger sample, with a higher proportion of 12-year-olds than other countries (20% compared with 10 14% for others). Conversely, England and Northern Ireland had a higher proportion of year-olds than Scotland (37% and 40% compared with 30% respectively). Northern Ireland had a lower proportion of young people in the test group than other countries (25% compared with 50% in England, 51% in Wales and 45% in Scotland). RBS MoneySense Research Panel Report

194 8.2 Key differences Current financial situation Respondents were asked how they had received money in the previous month. The results across the four countries are shown in Figure Figure Thinking about all the money you have had in the last month, where (or how) did you get the money? Multiple choice. Base: All, 2011 (England=10,630, Wales=612, Scotland=1,063, NI=366) Note: Responses over 3% are shown Respondents in Wales were less likely than those in the other countries to receive pocket money or money from their parents (76%, compared with 82% in England and Scotland, and 84% in Northern Ireland). However, those in Wales were more likely to earn money through a part-time job (24%, compared with RBS MoneySense Research Panel Report

195 18% in Scotland and 16% in Northern Ireland). Respondents in Wales (11%) and Northern Ireland (15%) were more likely than those in England (8%) and Scotland (6%) to receive Education Maintenance Allowance. Respondents in England were least likely to receive pocket money from grandparents (63% received none, compared with 54 57% of those in Wales, Scotland and Northern Ireland). Those in England were more likely that those in Northern Ireland to have a bank account (75% compared with 66%). When receiving money, respondents in England were more likely than those in Scotland or Northern Ireland to receive it straight into their bank account (44%, compared with 35% and 36% respectively) or into an online account (6%, compared with 4% and 2% respectively). Those in Northern Ireland were more likely than others to receive money as mobile phone credit (25%, compared with 16% in England and 14% in Wales and Scotland) Attitudes towards their financial situation When asked if they needed more money to be happy, those in England were more likely than those in Scotland to say yes (40% compared with 36%). Figure shows why they felt the need for more money. RBS MoneySense Research Panel Report

196 Figure Why do you feel you need more money to be happy? Multiple choice. Base: All who needed more money to be happy (England=4,264, Wales=233, Scotland=380, NI=124) English students were more likely than Scottish students to want more money for their future (59% compared with 51%) or to save for university (40% compared with 32%), which is logical, as Scottish students do not pay university fees while fees for English university students are rising. The Scottish sample was slightly younger than the English sample, so these may have been less immediate issues for many of them. Those in England were more likely than those in Wales to want more money for a better lifestyle (47% compared with 35%). RBS MoneySense Research Panel Report

197 Those in Scotland were least likely to agree with the statement money worries me (22%, compared with 29% in England, 30% in Wales and 32% in Northern Ireland). The cost of university was a key factor. Respondents in England were more likely than those in Scotland to attribute the cause of their money worries to the prospect of paying to go to university (51% compared with 39%), or the prospect of having to support their family (40% compared with 30%). However, English teenagers were also more likely than Scottish teenagers to worry because they wanted a nice lifestyle (60% compared with 50%) Perception of changes to their situation Those in England and Northern Ireland were more likely to feel that their families had spent less on activities and days out over the past year compared with those in Scotland and Wales (30% in England and 35% in Northern Ireland, compared with 25% in Wales and 24% in Scotland). There was a similar picture for holidays; those in England (27%) and Northern Ireland (32%) were more likely than those in Scotland (23%) to report that their families had spent less. Northern Irish respondents were more likely than others to feel that their families had spent more money on utilities over the past year (50%, compared with 40% in England and Wales and 39% in Scotland). Perhaps relating to the fact that there was a higher proportion of younger groups in Scotland than in the other countries, those in Scotland (37%) were more likely than those in England (32%), Wales (28%) and Northern Ireland (27%) to say that their pocket money had increased over the past year. Respondents in Northern Ireland had the most negative outlook about both their own and their family s financial state in a year s time; a third (32%) expected themselves and their parents to have less money to spend, compared with 19% of respondents in England, 17% in Wales and 18% in Scotland. Scottish teenagers were least likely to talk to their families about money; 36% claimed that they never talk about things relating to household finances, compared with 28% in England and 29% in Wales. Respondents in England were more likely than those in Scotland to talk to their parents about how much money they spend, the cost of food and utilities, and changes to the amount of money in the household. This is likely to relate to the younger sample in Scotland than in other countries. Those in Northern Ireland were least likely to talk to their parents about how much they earn or the type of bank or savings accounts that the adults have. RBS MoneySense Research Panel Report

198 Respondents were then asked how their parents felt about money and Figure shows the results. Figure Which of the following is true for the adults at home? Multiple choice. Base: All, 2011 (England=10,630, Wales=612, Scotland=1,063, NI=366) Perhaps because they were less likely to talk to their families about household finances, Scottish teenagers were less likely than English and Northern Irish teenagers to believe that their parents worry about money (30% compared with 36% in England and 38% in Northern Ireland). Those in England were more likely than those in Northern Ireland to think that their parents had plenty of money to buy everything they want (10% compared with 6%) Financial behaviour Respondents were asked how they monitored the amount of money they spend. The results are shown in Figure RBS MoneySense Research Panel Report

199 Figure How do you keep track of the money you ve spent? Multiple choice. Base: All, 2011 (England=10,630, Wales=612, Scotland=1,063, NI=366) In terms of budgeting, it was evident that respondents in England (59%) were more likely than those in Scotland (54%) to use formal methods of tracking their money, and in general seemed to use multiple methods of tracking. Those in England (27%) were more likely than those in Scotland (23%) and Northern Ireland (21%) to check their bank balance regularly, and more likely than those in Northern Ireland to read their bank statement (26% compared with 18%). English teenagers were also more likely than those in Scotland to check how much money they had left in their wallet (43% compared with 39%). Respondents in England continued to show a better understanding of financial issues relating to credit and debit cards. For example, two thirds (65%) knew that a PIN number was used at the cash point compared with 57 61% of those in the other countries. They were also more likely than those in Scotland to get all RBS MoneySense Research Panel Report

200 features correct (14% compared with 10%). Those in Northern Ireland (35%) and England (31%) were most likely to know that PIN stands for personal identification number, compared with 26% in Wales and 27% in Scotland. English teenagers were also more aware of tasks that should be completed when you receive a new debit card; 44% knew that the new card should be signed and the old card cut up, compared with 39% in Scotland and 36% in Northern Ireland. When asked what they did with their money in the previous month, respondents in Scotland were more likely than those in England and Wales to have spent all of their money, rather than saved any (23%, compared with 18% and 17% respectively). Conversely, those in England were more likely than those in Scotland to have saved some money in the previous month (77% compared with 72%). Respondents in Wales and Scotland (both 35%) were more likely than those in England (28%) to report being encouraged to save by their grandparents. There were no differences in the amount of money respondents saved across the countries. The only differences in what respondents saved for was in England (31%), where they were more likely than those in Scotland (23%) to save their money for university and where those in Scotland were more likely to be saving for a trip or holiday (35% compared with 25% in England). The average amount spent in total per month was similar across all countries. Those in Scotland were more likely to spend some money on music (28%) than those in England (23%) and Northern Ireland (20%). However, those in Northern Ireland ( 25) and Scotland ( 22) spent more than those in England ( 19), on average, on socialising. A higher proportion of respondents in Northern Ireland spent money in the previous month on food (86%, compared with just 78% in England and 76% in Scotland) Borrowing money and attitudes towards debt When asked what they should consider when applying for a loan, respondents in Wales had a lesser understanding than those elsewhere; 41% of respondents in England and Northern Ireland and 40% in Scotland realised that it was not important to borrow as much as they could, compared with 33% in Wales. Those in England were more likely than those in Wales to know that it was important to consider the time taken to pay back a loan (83% compared with 78%). Respondents were then asked if they expected to get into debt at some point in the future. Figure shows the results. RBS MoneySense Research Panel Report

201 Figure Do you ever think that you might get into debt in the future? Multiple choice. Base: All, 2011 (England=10,630, Wales=612, Scotland=1,063, NI=366) T hose in England (37%) and Northern Ireland (32%) were most likely to expect to get into debt in the future (compared with 30% in Wales and 24% in Scotland). Respondents were shown a list and asked which items they considered to be debt. English teenagers selected more types of debt than those from other countries. In particular, those in England (51%) were more likely than those in Wales (44%), Scotland (41%) and Northern Ireland (43%) to think of a student loan as debt. Respondents in England were also more likely to consider owing money to a friend or to a family member as debt than those in Northern Ireland (34% compared with 26% in Northern Ireland for both friends and family). Among those who thought that they might have debt when they were 25 years old, there was a mixed response to estimating how much the debt would be. Respondents in Scotland were more likely than others to think they would have no debt at 25 (19%, compared with 14% in England, 13% in Wales and 10% in Northern Ireland). Those in England were more confident in providing an estimate of their anticipated debt (25% compared with 18% in Wales, 14% in Scotland and 18% in Northern Ireland). Among those who could imagine how much debt they might have at 25, those in Scotland were more likely to expect lower amounts than those in England. For example, half (49%) of Scottish teenagers expected to owe between 100 and 9,999, compared with just a quarter (24%) of those in England; conversely, those in England were more likely to expect debts of 10,000 to 99,999 (42% compared with 21% in Scotland). When asked how much they considered as a lot of debt, those in England were more likely than those in Wales and Scotland to feel that way about 50,000 (85%, compared with 81% in Wales and 79% in Scotland). RBS MoneySense Research Panel Report

202 Respondents in Scotland were least likely to say that they worried about getting into a lot of debt in the future (62%, compared with 69% in England, 70% in Wales and 72% in Northern Ireland). They were then asked what form of debt would worry them most. Those in England (20%) and Northern Ireland (19%) were more likely than others to worry most about a student loan (the figures were 14% in Wales and 10% in Scotland). Respondents in Scotland were more worried about bank loans than those in England (36% compared with 30%). After being shown a list of statements about debt, respondents chose which one most reflected the way they felt. Those in England (20%) were more likely than those in Wales (14%) and Scotland (16%) to feel that getting into debt is to be expected but I will try not to get into too much, and were more likely than those in Scotland to feel that having debt is OK as long as you pay bits back regularly (13% compared with 10% in Scotland) Learning about money Respondents in Scotland and Northern Ireland (both 87%) were more likely to recall learning how to manage their money at home or at school in the past year than those in England (81%). English (45%) and Welsh teenagers (47%) were least likely to state that they had received lessons at school in money management, compared with 57% in Scotland and 56% in Northern Ireland. However, those in Wales (8%) and Northern Ireland (9%) were more likely than those in England to feel that they had learnt to manage their money from a sports or youth club. Learning about money management through teachers was more important for those in Scotland (28%) than those in England (23%) and Wales (20%). However, this may be owing to the younger sample in Scotland, as younger groups were keener than older groups to learn about this topic from their teachers Financial aspirations Scottish teenagers were least likely to know what qualifications they expected to achieve through their education (18% said they did not know, compared with 8 12% of others); however, this is likely to be owing to the slightly younger sample in Scotland. Those in Scotland were least likely to expect to achieve GCSEs or Standard Grades (57%, compared with 86% in England, 82% in Wales and 87% in Northern Ireland), and had a similar level of expectation of achieving a higher education qualification (49% in Scotland and 50% in Wales, compared with 57% in England and 58% in Northern Ireland). However, Scottish respondents were more likely than others to expect to achieve an HNC or HND (10% compared with 3% in England, 2% in Wales and 5% in Northern Ireland). English teenagers RBS MoneySense Research Panel Report

203 were more likely than Scottish or Northern Irish teenagers to anticipate achieving an apprenticeship (14%, compared with 9% and 8% respectively) and English (25%) and Welsh (29%) teenagers were more likely than Scottish (6%) and Northern Irish (15%) teenagers to expect to achieve BTEC or National qualifications. Respondents in Scotland were more likely than others to feel that they would not be in any debt after university (7%, compared with 3% in England, 1% in Wales and 2% in Northern Ireland), or to expect to have a small amount of debt. English teenagers expected to be in the most debt after university; 34% expected to owe more than 30,000 compared with 13% in Wales, 8% in Scotland and 20% in Northern Ireland. When asked when they expected to start paying back their university debt, those in Scotland were less likely than those in England to be able to guess when that would be, and those who did guess seemed to be less clear than those in other countries. Those in England were more likely than those in Scotland to think that they would start repayments as soon as the left university (25% compared with 19%), or when they turned 21 or 25 years old. English and Welsh teenagers were more likely than Scottish teenagers to think that they would start repayments when they earned more than 15,000 and Scottish respondents were least likely to even select the general answer that they would repay when they were earning enough (1% compared with 4% for all other countries). English respondents had considerably higher salary expectations for when they are established in their careers (at the age of 35) than those in Wales and Northern Ireland. A quarter (25%) of English teenagers expected to earn more than 50,000 at the age of 35, compared with around a sixth in Wales (16%) and Northern Ireland (14%). In terms of their future careers, a considerable number of differences could be seen between the countries. Those in Northern Ireland were the least likely to say that they did not know what their future career might be (12%), while those in Wales were the most likely to be unsure (22%). Respondents in England (6%) were more likely than those in Wales (3%) and Scotland (4%) to say that they would become a doctor or medical practitioner. They were also more likely to claim that they would enter banking or economics (3% compared with 1% for the other countries). Teenagers in Northern Ireland (12%) were more likely than those in England (8%) to want to be a teacher in the future, while those in Wales were the most likely to say that they wanted to become actors, entertainers or presenters (5%, compared with 3% in Scotland and Northern Ireland, and 4% in England). Thinking ahead to different life stages, respondents were asked at what age they expected to leave home, buy a car, buy a house, have a family and retire. In general, those in Wales and Scotland had higher expectations of being able to do each at a younger age than those in England. For example, Welsh (20%) and Scottish (23%) teenagers were more likely than those in England (16%) to anticipate buying a house by the age of 21. Respondents in Northern Ireland RBS MoneySense Research Panel Report

204 expected to leave home later than others; 29% expected to be between 22 and 25 years old, compared with 22% in England, 17% in Wales and 20% in Scotland, while those in the other countries were more likely to expect this to be between 16 and 18 years of age. When asked when they expected to buy a car, those in England were the least likely to expect to be able to do this between the ages of 16 and 18 (35%, compared with 44% in Wales, 42% in Northern Ireland and 41% in Scotland). No differences were seen between the countries in terms of when respondents expected to be able to retire. Finally, respondents were asked what financial products they expected to need in the future. The results are shown in Figure Figure Which of the following do you think you will need in your future? Multiple choice. Base: All, 2011 (England=10,630, Wales=612, Scotland=1,063, NI=366) Those in England were more certain that they would need most of the financial products listed than those in Wales. Compared to all other countries, RBS MoneySense Research Panel Report

205 respondents in England were most likely to expect to need a debit card (67%, compared with 59% in Wales, 60% in Scotland and 57% in Northern Ireland). English (81%) and Northern Irish (83%) respondents were more likely than Welsh respondents (75%) to anticipate needing savings in the future. Those in England were also more likely than those in Wales to expect to need a bank account (85% compared with 80%), insurance (79% compared with 73%) or an overdraft (17% compared with 12%). Additionally, respondents in England were more likely than those in Wales and Scotland to think that they would need a loan in the future (30%, compared with 23% and 22% respectively). RBS MoneySense Research Panel Report

206 9. National Summaries 2011 The data in this section provides summary information for each of the individual nations: Scotland, England, Wales, Northern Ireland and the Republic of Ireland. Data for each nation is weighted by socio-economic group to be representative, and also by equal gender and year groups. The data presented in this section has been re-weighted to allow for individual, nation-specific analyses. 9.1 Scotland Base=1, Current financial situation Source of money Bank accounts Type of money Income 82% received money from parents (84% of year-olds compared with 78% of year-olds). 36% received money from another family member. 45% earned their own money (39% of year-olds compared with 57% of year-olds). Younger teens more likely to get paid for chores at home (30% of year-olds compared with 23% of year-olds). Older teens were more likely to get part-time jobs (9% of yearolds compared with 39% of year-olds). Almost three quarters (73%) had a bank account. 92% of year-olds had one compared with 64% of yearolds. Those from more affluent backgrounds were more likely to have a bank account (80% of ABs and 76% of Cs, compared with 65% of DEs). Mainly received money in cash (86%). 35% received money into their bank account. Younger teens were more likely than older teens to receive money in cash, while older teens were more likely to have money transferred into their bank accounts. Some, particularly girls, received credit for their mobile phones (14%) or had their mobile phone bill paid (12%). Average income was 82 per month. Most money came from parents ( 31) or from a job ( 28). Those aged received an average of 55 per month, while those aged received considerably more ( 140). Each month, young people tended to receive most of their money in cash ( 43) or into their bank account ( 29). RBS MoneySense Research Panel Report

207 9.1.2 Attitudes towards their financial situation General attitudes Having their own money was important to 84% of young people, with those aged feeling more strongly than those aged (91% compared with 82%). 48% agreed that they always have enough money (51% of year-olds compared with 42% of year-olds). 56% felt that their money always goes too quickly; even more so for year-olds (61%) compared with year-olds (54%). Worry about money Does money make you happy? Family finances Just 22% agreed with the statement money worries me year-olds were more worried than year-olds (35% compared with 17%). Young people were worried about avoiding debt, wanting a nice lifestyle, finding employment, having enough money for their future and paying for university. Some worried about the possibility of having to help their family. 36% felt that they needed more money to be happy. Boys were more likely than girls to feel this way (41% compared with 31%). Older teenagers were more likely to feel the need for more money to make them happy (29% of year-olds compared with 51% of year-olds). The mean average amount they wanted per year was 12,302 (median average 1,200). Boys wanted more than girls; just 59% of boys compared with 76% of girls who needed more money to be happy would have been satisfied with 100 or less per month. Many wanted money for independence, including being able to pay their own way (57%), saving for their future (51%), saving for university (32%) or in case they could not get a job (24%). However, some wanted nice possessions (46%) or a better lifestyle (41%). Boys were more likely than girls to want more money for a car (40% compared with 23%) and to help their family (33% compared with 24%). Most felt that their families had spent the same amount or more over the past year on utilities (38% and 39% respectively) and food (48% and 34% respectively). However, they thought that spending on luxuries had remained the same or reduced: for activities and days out 41% spent the same and 24% spent less; and for holidays 27% spent more, 32% spent the same and 23% spent less. 32% expected to have more money to spend in a year s time, and 32% expected to have the same amount. 23% expected their parents to have more money to spend in a year s time and 35% expected them to have the same amount. 64% talked to their parents about the household finances. RBS MoneySense Research Panel Report

208 They mainly talked to their parents about what they spend money on, how much food and utilities cost, how much they earn and how much they spend and save. They were more likely to think that adults at home want to save more money (48%) or have to watch what they spend (47%), and less likely to state that their parents talk to them about how much money they have (21%) or that they have plenty of money to buy everything they want (10%) Financial behaviour How track their money Average spend Credit/ debit cards Saving behaviour 54% used formal methods such as checking their bank balance or printing a mini-statement from the ATM more so for girls and older groups than for boys and younger groups. 50% remembered what they had spent. 39% looked in their wallet to see what they had left. Their average spend was 115 per month (mean; 70 median). Boys spent 129 compared with 101 for girls (mean). Most was spent on clothes or shoes ( 39), driving lessons ( 25), socialising ( 22) and technology ( 21) year-olds spent more than year-olds ( 152 compared with 99) and spent more than younger teenagers on clothes, socialising and food. 27% of young people knew that PIN stood for personal identification number, but there was fairly good awareness of how they work, with 61% correctly identifying at least three aspects. Almost six out of ten young people knew that a new debit card should be signed (57%) or the old card cut up (58%), but just 39% knew that you should do both. 66% did not spend money if they thought they would need it for something else. 35% claimed that if they ran out of money, they could get more from someone at home. 72% saved money in the previous month; 8% saved all of their money, 20% saved most of it and 21% saved half. Regular savers saved 42 per month (mean average; 20 median average) year-olds saved a mean average of 66 per month, compared with 31 for those aged Although some saved for short-term purchases such as in the next week (18%) or next month (22%), many were saving for their future (38%) or were unsure of what they were saving for (36%). Clothing (52%) or technology items (37%), socialising (38%), and trips or holidays (35%) were most commonly saved for. Young people tended to look after their savings themselves at home (61%) or in their bank or building society (55%). RBS MoneySense Research Panel Report

209 Saving attitudes Borrowing money Learning about money According to young people, their parents (81%) and grandparents (35%) were most likely to encourage them to save. They had positive attitudes to saving: 80% disagreed with the statement there is no point in saving and 62% said that they saved more than they used to. 84% agreed that it is important to save money. In practise many found saving difficult: 40% found it difficult to save money and just 47% felt that they were good at saving money. There was a good understanding of considerations when applying for a loan: how much they can afford to repay (81%), time needed to repay (81%) and amount needed (77%). Respondents were less sure about needing to consider the APR (30% did not know). Only 36% correctly identified the most expensive APR and 44% said that they did not know. 24% thought they would get into debt in the future, 29% did not and 44% were unsure. They considered the following as debt: credit card debt (72%), bank loans (55%), overdrafts (50%), student loans (41%) and mortgages (40%). 81% expected to have debt by the age of 25, although only 14% guessed how much that would be. 22,089 was the mean average amount they expected to owe at 25 (median 1,000). 58% felt that 5,000 was a lot of debt and 70% thought that 10,000 was a lot of debt. 62% worried about getting into a lot of debt in the future, and they worried most about bank loans (36%) followed by credit card debt (34%). 66% felt they knew more about money management than a year ago. 87% learnt about money management at school or at home. 57% learnt about money management at school. 38% were taught about money management by family members outside of their home, 21% learnt from friends and 14% picked up information from the TV or radio. 53% wanted the same number of money management lessons at school as they currently had and 36% wanted more year-olds were more likely than year-olds to want more lessons (44% compared with 33%). Parents (68%) and financial experts (52%) were most welcomed to teach young people about managing money, while teachers were only chosen by 28% of young people. 91% thought it was important to learn about managing their money, and 63% felt it was very important. RBS MoneySense Research Panel Report

210 9.1.4 Financial aspirations Qualifications and university debt Salary expectations Lifestyle expectations 57% expected that they would achieve Standards and 64% expected to achieve Highers. 49% expected to achieve a higher education qualification (e.g. bachelor s degree). Expected levels of debt after going to university were: up to 5,000 (20%), up to 10,000 (31%) and up to 20,000 (48%). 29% were unsure. 27% expected to be able to start paying back university debts while they were still studying, and 19% thought they would be able to do so as soon as they finished university, while 22% had not thought about it. 29% expected to own their own business in the future 13,800 mean expected earnings when finishing education 28,700 mean expected earnings at the age of 25 53,600 mean expected earnings at the age of 35 Perception of average (mean) salaries for the following jobs: Footballer 2.9 million X Factor winner 769,900 Gold medal Olympian 420,100 Doctor 77,100 Bank teller 34,600 Firefighter 30,300 Teacher 28,900 Hairdresser 17,300 Bus driver 16,600 Waitress 15,700 70% expected to leave home by the age of 21, and 90% by % expected to be able to buy a car by the age of 21, and 90% by % expected to buy a house by the age of 25, and 86% by % expected to have a family by the age of % expected to be able to retire by the age of % did not know what career they aspired to, while 9% thought that they would be a teacher and 5% thought that they would be a lawyer or work in engineering. Around eight out of ten expected to need a bank account (84%), insurance (78%) or savings (77%) in the future; and between six and seven out of ten thought they would need a pension (67%), mortgage (61%), credit card (63%) or debit card (60%). Only a fifth (22%) anticipated needing a loan, and one out of six (15%) thought they would need an overdraft. RBS MoneySense Research Panel Report

211 9.2 England Base=8, Current financial situation Source of money Bank accounts Type of money Income 82% received money from parents (85% of year-olds, compared with 79% of year-olds). 32% received money from another family member. 44% earned their own money (41% of year-olds, compared with 50% of year-olds). Younger teens were more likely to get paid for chores at home (30% of year-olds, compared with 16% of year-olds). Older teens were more likely to get part-time jobs (11% of year-olds, compared with 36% of year-olds). Three quarters (75%) had a bank account. 91% of year-olds had one compared with 65% of yearolds. Those from more affluent backgrounds were more likely to have a bank account (80% of ABs, compared with 76% of Cs and 68% of DEs). Young people mainly received money in cash (86%). 44% received money into their bank account. Younger teens were more likely than older teens to receive money in cash, while older teens were more likely to have money transferred into their bank accounts. Some (more girls than boys) received credit for their mobile phones (16%) or had their mobile phone bill paid (12%). Average income was 83 per month. Most money came from parents ( 29) or from a job ( 29). Those aged received an average of 54 per month, while those aged received considerably more ( 133). Each month, young people tended to receive most of their money in cash ( 44) or into their bank account ( 31) Attitudes towards their financial situation General attitudes Worry Having their own money was important to 85% of young people, with those aged feeling more strongly than those aged (90% compared with 82%). 43% agreed that they always have enough money (46% of year-olds, compared with 39% of year-olds; and 46% of boys, compared with 39% of girls). 52% felt that their money always goes too quickly, particularly girls (55%, compared with 50% of boys). Just 29% agreed with the statement money worries me. RBS MoneySense Research Panel Report

212 about money Does money make you happy? Family finances year-olds were more worried than year-olds (40% compared with 23%), and girls were more worried than boys (34% compared with 24%). Young people were worried about avoiding debt, wanting a nice lifestyle, having enough money for their future, paying for university and finding employment. Some worried about the possibility of having to help their family. 40% felt that they needed more money to be happy Boys were more likely than girls to feel this way (43% compared with 38%). Older teenagers were more likely to feel the need for more money to make them happy (35% of year-olds, compared with 49% of year-olds). The mean average amount they wanted per year was 11,300 (median average 840). Boys were more likely than girls to want more than 100 per month extra (33% compared with 23%). Those aged 18+ wanted considerably more money than younger teens ( 35,100 per year compared with 1,700 to 13,200 for other ages). Many wanted money for independence, including saving for their future (59%), being able to pay their own way (57%), saving for university (40%), to help their family (34%), or in case they could not get a job (23%). However, some wanted a better lifestyle (47%) or nice possessions (39%). Most felt that their families had spent the same amount or more over the past year on utilities (35% and 40% respectively) and food (45% and 34% respectively). However, they thought that spending on luxuries had remained the same or reduced: for activities and days out 36% spent the same and 30% spent less; and for holidays 23% spent more, 30% spent the same and 27% spent less. 31% expected to have more money to spend in a year s time and 31% expected to have the same amount. 22% expected their parents to have more money to spend in a year s time, 36% expected them to have the same amount and 30% expected them to have less. Boys were more optimistic about their own and their parents finances in the next year. 72% talked to their parents about the household finances. They mainly talked to their parents about what they spend money on, how much food and utilities cost, the amount they earn, spend and save, and changes to the household finances. They were more likely to think that adults at home want to save more money (50%) or have to watch what they spend (49%), and less likely to state that their parents talk to them about how much money they RBS MoneySense Research Panel Report

213 have (24%) or that they have plenty of money to buy everything they want (10%). 36% thought that their parents worried about money Financial behaviour How track their money Average spend Credit/ debit cards Saving behaviour Saving attitudes 59% used formal methods such as checking their bank balance or printing a mini-statement from the ATM more so for girls and older groups than for boys and younger groups. 52% remembered what they had spent. 43% looked in their wallet to see what they had left. The average spend was 109 per month (mean; 70 median). Boys spent 125 compared with 94 for girls (mean). Most was spent on clothes or shoes ( 36), technology ( 20), socialising ( 19), driving lessons ( 18) and food ( 16) year-olds spent more than year-olds ( 136 compared with 94), and spent more than younger teenagers on clothes, socialising, food and driving lessons. 31% of young people knew that PIN stood for personal identification number, but there was fairly good awareness of how they work, with 65% correctly identifying at least three aspects. Around six out of ten young people knew that a new debit card should be signed (62%) or the old card cut up (60%), but just 44% knew that you should do both. Girls and older groups had a better understanding than boys and younger groups of PIN numbers and debit cards. 70% did not spend money if they thought they would need it for something else. 33% claimed that if they ran out of money, they would get more from someone at home. 77% saved money in the previous month; 8% saved all of their money, 23% saved most of it and 20% saved half. Regular savers saved 42 per month (mean average; 20 median average) year-olds saved a mean average of 60 per month, compared with 31 for those aged Although some saved for short-term purchases such as in the next week (17%) or next month (23%), many were saving for their future (43%) or were unsure what they were saving for (38%). Clothing (54%), technology items (43%), socialising (41%), university (31%) or trips and holidays (25%) were most commonly saved for. Young people tended to look after their savings themselves at home (63%), or in their bank or building society (59%). According to young people, their parents (78%) and grandparents (28%) were most likely to encourage them to save. They had positive attitudes to saving: 81% disagreed with the statement that there is no point in saving and 61% said that they RBS MoneySense Research Panel Report

214 Borrowing money Learning about money saved more than they used to. 85% agreed that it is important to save money. In practise many found saving difficult: 36% found it difficult to save money and just 48% felt that they were good at saving money. There was a good understanding of considerations when applying for a loan: how much they can afford to repay (83%), time needed to repay (83%), and amount needed (80%). They were less sure about needing to consider the APR (28% did not know). Only 37% correctly identified the most expensive APR and 44% said that they did not know. Boys and older teens were more likely than girls and younger teens to select the correct answer. 37% thought they would get into debt in the future, 24% did not and 36% were unsure. They considered the following as debt: credit card debt (74%), bank loans (60%), overdrafts (53%), student loans (51%) and mortgages (47%). 86% expected to have debt by the age of 25, although only 25% guessed how much that would be. 19,700 was the mean average amount that they expected to owe at 25 (median 5,000). 60% felt that 5,000 was a lot of debt and 74% thought that 10,000 was a lot of debt. 69% worried about getting into a lot of debt in the future, with girls more worried than boys (73% compared with 64%). Young people mainly worried about credit card debt (35%) and bank loans (30%), followed by student loans (20%). From a list of statements, young people were most likely to agree with I would not like to get into any debt (41%), followed by getting into debt is to be expected but I will try not to get into too much (20%). 66% felt they knew more about money management than a year ago. 81% learnt about money management at school or at home. 45% learnt about money management at school. 36% were taught about money management by family members outside of their home, 22% learnt from friends and 16% picked up information from the TV or radio. 47% wanted the same number of money management lessons at school as they currently had and 40% wanted more year-olds were more likely than year-olds to want more lessons (43% compared with 38%). Parents (72%) and financial experts (49%) were most welcomed to teach young people about managing money, while teachers were only chosen by 23% of young people. 90% thought it was important to learn about managing their money; 59% felt it was very important. RBS MoneySense Research Panel Report

215 9.2.4 Financial aspirations Qualifications and university debt Salary expectations Lifestyle expectations 86% expected that they would achieve GCSEs, and 71% expected to achieve A levels. 57% expected to achieve a higher education qualification (e.g. bachelor s degree). Expected levels of debt after going to university were: up to 15,000 (24%), up to 30,000 (48%) and up to 50,000 (70%). 15% were unsure. 25% expected to be able to start paying back university debts as soon as they finished university and 18% thought that they would be able to do so while they were still studying, while 15% had not thought about it. 31% expected to own their own business in the future. 13,500 mean expected earnings when finishing education 29,900 mean expected earnings at the age of 25 57,200 mean expected earnings at the age of 35 Boys expected to earn more than girls at each stage. Perception of average (mean) salaries for the following jobs: Footballer: 3.8 million X Factor winner: 652,300 Gold medal Olympian: 333,800 Doctor: 76,600 Bank teller: 44,400 Firefighter: 30,800 Teacher: 30,100 Hairdresser: 18,300 Bus driver: 15,500 Waitress: 17,300 66% expected to leave home by the age of 21, and 88% by % expected to be able to buy a car by the age of 21, and 85% by % expected to buy a house by the age of 25, and 83% by % expected to have a family by the age of % expected to be able to retire by the age of 65, and 68% by % did not know what career they aspired to, while 8% thought that they would be a teacher, 6% thought that they would be a medical practitioner or doctor, and 5% thought that they would be a lawyer. Around eight out of ten expected to need a bank account (85%), savings (81%) or insurance (79%) in the future; and between six and seven out of ten thought they would need a pension (67%), mortgage (62%), credit card (63%) or debit card (67%). Less than a third (30%) anticipated needing a loan and one out of six (17%) thought they would need an overdraft. RBS MoneySense Research Panel Report

216 9.3 Wales Base= Current financial situation Source of money Bank accounts Type of money Income 76% received money from parents (81% of year-olds, compared with 65% of year-olds). 34% received money from another family member. 49% earned their own money (43% of year-olds, compared with 60% of year-olds). Younger teens were more likely to get paid for chores at home (32% of year-olds, compared with 19% of year-olds). Older teens were more likely to get part-time jobs (12% of year-olds, compared with 46% of year-olds). Around three quarters (74%) had a bank account. 90% of year-olds had one, compared with 64% of yearolds. Young people mainly received money in cash (85%). 41% received money into their bank account. Younger teens were more likely than older teens to receive money in cash, while older teens were more likely to have money transferred into their bank accounts. Some (more girls than boys) received credit for their mobile phones (14%) or had their mobile phone bill paid (11%). Average income was 86 per month. Most money came from a job ( 36) or from parents ( 25). Those aged received an average of 53 per month, while those aged received considerably more ( 148). Each month, young people tended to receive most of their money in cash ( 49) or into their bank account ( 32) Attitudes towards their financial situation General attitudes Worry about money Having their own money was important to 85% of young people, with those aged feeling more strongly than those aged (90% compared with 83%). 43% agreed that they always have enough money (46% of year-olds, compared with 38% of year-olds; and 48% of boys, compared with 39% of girls). 55% felt that their money always goes too quickly, particularly girls (62%, compared with 48% of boys). Just 30% agreed with the statement money worries me year-olds were more worried than year-olds (42% compared with 23%). Young people were worried about avoiding debt, wanting a nice lifestyle, paying for university, having enough money for their future, and finding employment. Some worried about the possibility of having RBS MoneySense Research Panel Report

217 Does money make you happy? Family finances to help their family. 38% felt that they needed more money to be happy. Older teenagers were more likely to feel the need for more money to make them happy (35% of year-olds, compared with 44% of year-olds). The mean average amount they wanted per year was 23,900 (median average 720). Boys were more likely than girls to want more than 100 per month extra (36% compared with 26%). On average, those aged wanted considerably more money than younger teens aged ( 55,700 per year compared with 1,700). Many wanted money for independence, including being able to pay their own way (56%), saving for their future (52%), saving for university (41%), to help their family (31%) or in case they could not get a job (23%). However, some wanted or nice possessions (41%), a better lifestyle (35%) or to buy a car (32%). Most felt that their families had spent the same amount or more over the past year on utilities (36% and 40% respectively) and food (45% and 34% respectively). However, they thought that spending on luxuries had remained the same or reduced: for activities and days out, 41% spent the same and 25% spent less; and for holidays, 34% spent the same and 25% spent less. 33% expected to have more money to spend in a year s time and 31% expected to have the same amount. 23% expected their parents to have more money to spend in a year s time, 37% expected them to have the same amount and 28% expected them to have less. Boys were more optimistic about their own and their parents finances in the next year. 71% talked to their parents about the household finances. They mainly talked to their parents about what they spend money on, how much food and utilities cost and the amount they earn, spend and save. Young people were more likely to think that adults at home have to watch what they spend (50%) or want to save more money (47%), and less likely to state that their parents talk to them about how much money they have (21%) or that they have plenty of money to buy everything they want (10%). 35% thought that their parents worried about money Financial behaviour How track their 57% used formal methods such as checking their bank balance or printing a mini-statement from the ATM more so by those aged 16 RBS MoneySense Research Panel Report

218 money 19 than those aged (74% compared with 47%). 51% remembered what they had spent. 43% looked in their wallet to see what they had left. Average spend Credit/ debit cards Saving behaviour Saving attitudes The average spend was 111 per month (mean; 71 median). Boys spent 123 compared with 100 for girls (mean). Most was spent on clothes or shoes ( 38), socialising ( 21), technology ( 18), driving lessons ( 16), food ( 16), and sports and hobbies ( 12) year-olds spent more than year-olds ( 142 compared with 95), and they spent more than younger teenagers on socialising and food. Just 26% knew that PIN stood for personal identification number, but there was fairly good awareness of how they work, with 59% correctly identifying at least three aspects. Around six out of ten young people knew that when receiving a new debit card, the old card should be cut up (59%) or the new one signed (58%), but just 40% knew that you should do both. Those aged had a better understanding than those aged of PIN numbers and debit cards. 69% did not spend money if they thought they would need it for something else. 30% claimed that if they ran out of money, they could get more from someone at home. 77% saved money in the previous month; 10% saved all of their money, 20% saved most of it and 23% saved half. Regular savers saved 42 per month (mean average; 20 median average) year-olds saved a mean average of 61 per month, compared with 30 for those aged Although some saved for short-term purchases such as in the next week (15%) or next month (24%), many were saving for their future (45%) or were unsure what they were saving for (37%). Clothing (50%), technology items (44%), socialising (42%), university (28%), trips and holidays (27%), or driving lessons (25%) were most commonly saved for. Young people tended to keep their savings in their bank or building society (62%) or look after them themselves at home (57%). According to young people, their parents (79%) and grandparents (35%) were most likely to encourage them to save. They had positive attitudes to saving: 84% disagreed with the statement that there is no point in saving and 65% said that they saved more than they used to. 85% agreed that it was important to save money. In practise many found saving difficult: 33% found it difficult to save money and just 48% felt that they were good at saving money. RBS MoneySense Research Panel Report

219 Borrowing money Learning about money There was a good understanding of considerations when applying for a loan: how much they can afford to repay (80%), the amount needed (79%), time needed to repay (78%) and the APR (53%). Only 33% correctly identified the most expensive APR and 45% said that they did not know. Boys and older teens were more likely than girls and younger teens to select the correct answer. 30% thought they would get into debt in the future, 25% did not and 41% were unsure. They considered the following as debt: credit card debt (68%), bank loans (58%), overdrafts (51%), student loans (44%) and mortgages (43%). 87% expected to have debt by the age of 25, although only 18% guessed how much that would be. 14,100 was the mean average amount they expected to owe at 25 (median 500). 59% felt that 5,000 was a lot of debt and 71% thought that 10,000 was a lot of debt. 70% worried about getting into a lot of debt in the future, with girls more worried than boys. Young people mainly worried about bank loans (34%) and credit card debt (32%), followed by student loans (14%) and overdrafts (12%). From a list of statements, young people were most likely to agree with I would not like to get into any debt (41%), followed by getting into debt could lead to bankruptcy (15%), getting into debt is to be expected but I will try not to get into too much (14%) and having debt is OK as long as you pay bits back regularly (13%). 65% felt they knew more about money management than a year ago. 83% learnt about money management at school or at home. 47% learnt about money management at school. 39% were taught about money management by family members outside of their home, 22% learnt from friends and 15% picked up information from the TV or radio. 53% wanted the same number of money management lessons at school as they currently had and 35% wanted more. Parents (69%) and financial experts (48%) were most welcomed to teach young people about managing money, while teachers were only chosen by 20% of young people. 89% thought it was important to learn about managing their money, and 55% felt it was very important. RBS MoneySense Research Panel Report

220 9.3.4 Financial aspirations Qualifications and university debt Salary expectations Lifestyle expectations 82% expected that they would achieve GCSEs and 66% expected to achieve A levels. 50% expected to achieve a higher education qualification (e.g. bachelor s degree), with older groups and girls more likely to think so than younger groups and boys. Expected levels of debt after going to university were: up to 10,000 (29%), up to 15,000 (42%), up to 30,000 (67%) and up to 50,000 (77%). 19% were unsure. 25% expected to be able to start paying back university debts as soon as they finished university and 20% thought they would be able to do so while they were still studying, while 19% had not thought about it. 30% expected to own their own business in the future. 11,400 mean expected earnings when finishing education 22,200 mean expected earnings at the age of 25 46,600 mean expected earnings at the age of 35 Perception of average (mean) salaries for the following jobs: Footballer: 4.1 million X Factor winner: 706,000 Gold medal Olympian: 293,100 Doctor: 84,500 Firefighter: 34,300 Bank teller: 33,600 Teacher: 28,700 Hairdresser: 16,000 Waitress: 14,200 Bus driver: 13,100 71% expected to leave home by the age of 21, and 88% by % expected to be able to buy a car by the age of 21, and 85% by % expected to buy a house by the age of 25, and 85% by % expected to have a family by the age of % expected to be able to retire by the age of 65, and 70% by % did not know what career they aspired to, while 10% thought that they would be a teacher and 5% thought that they would be an actor, entertainer or presenter. Around eight out of ten expected to need a bank account (80%), savings (75%) or insurance (73%) in the future; and between six and seven out of ten thought they would need a pension (62%), mortgage (60%), credit card (59%) or debit card (59%). Less than a quarter (23%) anticipated needing a loan and around one in ten (12%) thought they would need an overdraft. RBS MoneySense Research Panel Report

221 9.4 Northern Ireland Base= Current financial situation Source of money Bank accounts Type of money Income 84% received money from parents (89% of year-olds, compared with 76% of year-olds). 37% received money from another family member. 47% earned their own money (43% of year-olds, compared with 53% of year-olds). Younger teens more likely to get paid for chores at home (35% of year-olds, compared with 23% of year-olds). Older teens were more likely to get part-time jobs (8% of yearolds, compared with 28% of year-olds). Two thirds (66%) had a bank account. 87% of year-olds had one, compared with 52% of yearolds. Those from more affluent backgrounds were more likely to have a bank account (75% of ABs, compared with 65% of Cs and 63% of DEs). Young people mainly received money in cash (89%). 36% received money into their bank account. Younger teens were more likely than older teens to receive money in cash, while older teens were more likely to have money transferred into their bank accounts. A quarter received credit for their mobile phones (25%) or had their mobile phone bill paid (8%), and girls were more likely than boys to be supported in this way. Average income was 87 per month. Most money came from parents ( 33) or from a job ( 22). Those aged received an average of 58 per month, while those aged received considerably more ( 130). Each month, young people tended to receive most of their money in cash ( 48) or into their bank account ( 32) Attitudes towards their financial situation General attitudes Having their own money was important to 87% of young people, with those aged feeling more strongly than those aged (89% compared with 85%). 47% agreed that they always have enough money (50% of year-olds, compared with 42% of year-olds; and 42% of girls, compared with 52% of boys). 58% felt that their money always goes too quickly, particularly girls (63%, compared with 54% of boys). RBS MoneySense Research Panel Report