Britain’s teenagers are a new generation who would prefer to save than spend a lump sum given to them on turning 18.
New research carried out for The Children’s Mutual shows that out of participating teenagers given £20,000 at the age of 18, 57 per cent said they would choose to save it. Other popular choices as to what the teenagers would do with £20,000 at 18 included, spending the money on education or putting it towards their first house.
These responsible answers were in stark contrast to what the participating teenagers’ parents predicted they would do with the money. According to the Trust Fund Generation report, 42 per cent of parents asked thought their children would spend the lump sum on material goods, and a further 19 per cent thought they would spend the cash ‘just having fun’.
The research was released by The Children’s Mutual to coincide with the third anniversary of the Child Trust Fund
and shows that today’s teenagers are much more responsible when it comes to money than their parents think. David White, chief executive of The Children’s Mutual, said: "The Child Trust Fund was launched to give every youngster in the UK a financial springboard into adulthood and to change the nation’s saving habits.
"You’ve got to give credit to our teenagers! Their parents were brought up in an environment that was all about borrowing and spending but this generation of young people has realised that saving now and spending later is a better approach. With the papers full of the credit crunch there has never been a more appropriate moment to talk about this."
According to the Children’s Mutual, Child Trust Funds have proven to be a great success and families are embracing the scheme from the child’s birth. As a result, more parents are being encouraged to save for their child’s future and in turn teach their child about the importance of saving.
Mr. White concluded: "The Government introduced the CTF to tackle child poverty, break the cycle of disadvantage and open savings and wealth ownership to all. It is now three years since the scheme went live and already one in five of the lowest income families that proactively open CTF accounts are finding the money to save into their child’s account on a monthly basis.
"By saving a little, regularly, families could be helping their children onto the first step of the property ladder, to start their own business or to leave university debt free."
© Fair Investment