Financial awareness among young adults is improving!
Today’s young adults are more financially savvy then they were a decade ago, according to figures released today by Bacs, the industry body behind Direct Debit and Bacs Direct Credit.
When quizzed about bank accounts, bill payments and attitudes to money, young adults aged 16-24 years old, consistently showed that they had more control and were more knowledgeable about financial matters than in the past. Over the last ten years the number of young adults with a current account has increased by more than 10%
(1). In addition only 24% believe they are disorganised when it comes to bill payment compared to 34% ten years ago. Direct Debit usage has also increased within this group by 6%
(2). The figures were produced as part of the Consumer Payments Survey (CPS), an annual survey sponsored by Bacs. The survey, which began in 1988, provides a consumer based measure of financial behaviour and includes attitudes to money, banking behaviour, and Direct Debit. The fieldwork, which is representative of the UK population, is carried out by IPSOS-MORI.
In addition to historical information, the CPS also provides an insight into the general financial attitudes of today’s young adults. The survey found that 87% are aware of the balance in their current accounts, 76% check each entry on their bank statements and over half plan for the future rather then living for today (3). Further findings on the attitudes of today’s 16-24 year olds to money include:
- 93% always like to know where they stand financially
- only 26% borrow money or use a credit card rather then save for an item
- 62% pride themselves on being careful with money
- 66% always try to save some money each month
- 79% are confident about making financial decisions
Michael Chambers, Managing Director, Bacs said: “Recently there has been much speculation regarding the lack of financial skills amongst today’s young adults (4). Although financial awareness amongst this age group may not be as high as in older adults, Consumer Payments Survey data shows that this is by no means a new phenomenon.”
“It is very positive to illustrate that attitudes to money amongst young adults are improving over time. Current CPS data shows that the vast majority of 16-24 year olds do recognise the importance of basic financial management and are on top of their current accounts and saving money. This is positive news in a climate where youngsters are facing increasing financial worries such as pressures regarding student debt and rising house prices.”
For more information about Bacs and our services visit Bacs key facts.
Contact Bacs press office.
Notes
(1) 77% of 16-24 year olds now have a current account compared with 66% in 1992
(2) 36% of 16-24 year olds have a Direct Debit compared to 30% in 1992
(3) 47% of 16-24 year olds have a live for today attitude
(4) "Urgent need to help the young, says FSA", 27 March 2006
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