'Independent' teens follow parents to bank

25 March 2004
Young workers might love the independence their own money brings them, but many follow their parents banking habits.

New research from Alliance & Leicester reveals almost three-quarters (72 per cent) of 16 to 24-year-olds who enter employment after leaving school fail to look at other options. Just 11 per cent actually investigated two or more banks.

Nearly a quarter are opting for the provider their parents use, while four out of ten stick with the account they already have.

Simon Ripton, manager of current accounts at Alliance & Leicester, said: "[Young people's] financial needs will typically be very different from those of their parents and so they owe it to themselves to make the best decision for their circumstances."

Considering 82 per cent of youngsters are reported as having said they cherish the newfound independence a salary brings, Mr Ripton feels it is "disappointing that so many young people don't give greater thought to who they bank with when they start work," and merely choose to follow in the footsteps of their elders.

Alliance & Leicester has recently created a new bank account specifically aimed at 16 to 21-year-olds. The Young Worker Current Account caters for those who can pay at least £100 into the account each month, and the opening offer comes with a six-issue subscription to a variety of magazines.