Scotland

Young people show money 'reality gap' says survey

Boys raising hands [Thinkstock]
Image caption The survey asked 12 to 19 year olds about their money expectations

More than half of young people in Scotland expect to be able to buy a home by 25, a survey has suggested.

About 1,300 Scottish youngsters, aged 12 to 19, were surveyed for the Royal Bank of Scotland panel.

Despite the current problems for first-time buyers, 62% of those surveyed said they expected to be able to buy their first home by the age of 25.

Jennifer Somerville from RBS said there was a "growing gap between young people's expectations and reality".

The bank started commissioning the MoneySense research panel surveys in 2007.

The latest study said the young people surveyed expected to earn on average £15,756 when first out of education, at 25 they expected to earn on average £33,769 and at 35 they expected to earn on average £54,355.

The panel found that 24% of young people anticipated getting into debt in the future and 20% worried about their finances.

It said 60% of teenagers in Scotland received pocket money and 18% had a part-time job.

Teenagers in Scotland spent £40.60 on average each month on clothes and shoes, according to the study.

Ms Somerville, RBS's regional MoneySense manager for Scotland, said: "This year's results show that local teens are taking a real interest in their money, but it is clear there's a growing gap between young people's expectations and reality, that's why it's so important that we equip them with the knowledge and skills to make considered financial decisions for their future.

"RBS has been a solid supporter of financial education in schools for the last 17 years, investing time and resources into teaching younger generations how to manage their money."

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