31 March 2010

Research carried out by Natwest has shown that teenagers expect to own their own home by time they reach their mid-20s and to earn more than £50,000 by their mid-30s.

The survey of 10,000 teenagers across the country also indicated their belief that they would run up just £10,000 worth of student debt by the time they graduate. However, many of those surveyed claimed they are starting to think carefully about their money, with two-thirds saying that the recession had contributed towards their improved money management skills. The reality is that, due to the rising cost of higher education, young people are left with approximately £20,000 worth of debt by the end of their courses.

The average expected salary by age 35 was £51,000, with the most optimistic teenagers based in London as they expected to earn around £63,000 by their mid 30s. This represents more than double the average salary of people in their thirties, which is £28,933.

Two-thirds of the respondents also thought they would own a house by the time they were 25. In reality, only 14% of homeowners are aged 25 or under.

Wendy van den Hende, chief executive of Personal Finance Education Group, a charity promoting personal finance in schools, said that the recession was having a clear impact on young people. Van den Hende commented: “Teenagers are very financially astute and are increasingly involved with the management of money.”

Source: Guardian

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