Published at 14:08, Friday, 25 May 2012

Teenagers expect to earn more than twice the average wage by the time they hit 35 – but only five per cent of parents share their optimism, a report has revealed.

Young people between the ages of 12 and 19 believe they will earn an average of £56,000, well over the average wage of £24,316 for people in their 30s, according to the Royal Bank of Scotland’s MoneySense Research Panel.

On the other hand, most parents believe teenagers will be earning about £25,000 by their mid-30s, with only five per cent sharing their optimism that they can earn £56,000.

And some 59 per cent believe their children will be worse off than them in future.

The most optimistic teens were in England, where they expect a future pay packet of £57,200, while in Northern Ireland young people hope for just £39,600. In Wales and Scotland the figure was £46,600 and £53,600 respectively.

The generational gulf might be down to a lack of communication – it was found that 80 per cent of parents do not prioritise discussions about money with their children and nearly two-thirds felt unqualified to do so. This is despite seven in 10 teens wanting to learn about finance from their parents.

Andrew Cave of RBS group community affairs said: “RBS believes it’s more important than ever to educate young people about money in the classroom. Every child should leave school armed with the ability to manage their money and the skills to make the best financial decisions for their future.”

The survey showed that young people are aware of their personal finances, with 90 per cent keeping track of their money and 37 per cent saving for the future. Expectations of debt among teens were higher. Only 12 per cent expected to have no debt at the age of 25, compared with 24 per cent in the 2007. A third of English teens expect to owe at least £30,000 when they graduate.

Student debt is predicted to hit £53,400 on average for those starting degrees this year, according to the PUSH National Study Debt Survey.

Published by http://www.cumberlandnews.co.uk