18 October 2010

Focused On Being Money Savvy And Independent: Today's Under 18s Are Financially Clued-Up And Eager To Work

If you want to find capable and confident money managers look no further than Britain's tweens (8 – 13 years old) and teens (14 – 18 years old), according to the M&S Money Under 18's Work and Money Survey 2010.

The survey - based on research of more than 3,000* UK under 18s - highlights that:

• A child aged 8-9 has an average monthly income of £9.70 and by 18 years of age monthly income has soared to an average of £219.  However, while the older age group 'earn' substantially more, they have to subsidise a greater range of expenses.
• Both tweens (50%) and teens (30%) save significant percentages of their income – putting many older savers to shame.
• Tweens (39%) are more likely to earn pocket money by helping out around the house than teens (29%) – possibly reflecting the older age groups propensity to look for other forms of income generating work.
• Indeed, 72% (tweens) and 87% (teens) would like to have a part-time job by the age of 18 as they feel it will teach them responsibility and help them gain employment when they are older.

Strong Savings Ethic:

The M&S Money Under 18's Work and Money Survey 2010 shows that both teens and tweens have good savings habits.  Tweens are most likely to spend most of their money on treats such as sweets and magazines (58%) but an impressive 53% of 8 – 13 year olds are saving half (50%) of their income (£7.20) in either a savings account or piggy bank.

Teenagers, who need to finance mobile phone costs (29%) and necessities such as clothes, transport or school books (22%) have higher average monthly incomes (£74.20) but still manage to save 30% of their average monthly income (£23.50) **.

Desire to Work:

For both groups, the primary source of income is "parental subsidies" or pocket money.  However, both tweens (8 – 13 year olds) and teens (14 – 18 year olds) seem worldly-wise about how to get on in life, with 80% keen to have a part-time job before they are 18.

The rising monthly income of teenagers reflects their greater propensity to work; 25% of 16-17 year olds and 30% of 18 year olds have a part time job, and 3% of 18 year olds are even running their own business.

Table 1: Top Five Ways Teens (14 – 18 years old) Earn Money:

While not all teens of 'working age' have a part-time job, many have a keen desire to find one.  Indeed, over half (56%) of 16-18 year olds surveyed have attempted to supplement their income by finding a part time job in the last six months, almost twice the number that actually have one (30% of 16-17 year olds, 31% of 18 year olds).

Money guidance from parents and grandparents:

A lot of credit for these attitudes must go to parents and grandparents who are doing a good job in teaching children about money; more than four-fifths of parents have discussed how to spend and save money with both 8-13s and 14-18s, as have 20% of grandparents. Six in ten parents have also explained what a budget is and discussed financial news and 65% of parents have helped their Tween child open a savings account.

Amanda Newman, Head of Marketing at M&S Money, commented on the findings:

The survey shows that Britain's 8-18s are clued up and motivated by money and work to a surprisingly mature extent.

They have great savings habits and a tremendously positive attitude to earning their own money both for its own sake and to gain career building and life skills.   The vast majority would like to have a part time job while still in education, although not all are finding it easy to get one at present.

It is great also to see that many parents and grandparents are giving children a good awareness of money matters by talking to them about spending and saving, and it is clearly having a benefit.

We encourage parents and grandparents who have such a key opportunity to foster good financial skills in their children, to talk about their own money and budgeting experiences to build the children's understanding even further."

ENDS

Notes to Editors

* Research undertaken by YouGov online among 3131 8-18s 17th-22nd September 2010.

** Graph showing monthly income and savings of 8-18 year olds.

For further information please call the M&S Money press office:

Simon Coughlin on 020 7992 1574 or simon.coughlin@mandsmoney.com

Lee Blackwell/Laura O'Connell on 0207 4271400 or l.blackwell@wriglesworth.com

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc, making 2010 the company's 25th anniversary.

The company is a top-ten credit card provider and the second-largest travel money retailer in the UK.  M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.