This section explores the findings among the 953 young people aged 12–19 surveyed in Northern Ireland. Data has been weighted by socio-economic group, gender and year group to support analysis which is proportionally representative. 5.7.1 Current financial situation
Firstly, young people were asked where they had received money from in the past month. Figure 5.7.1 shows the results.
Figure 5.7.1 Thinking about all the money you have had in the last month, where (or how) did you get the money?
Multiple choice. Base: All NI, (953)
When asked where they received money from in the previous month, 84% claimed to have received money from an adult at home, either as pocket money (56%) or less formally (68%). More than a third (37%) received money from another family member, almost half (47%) earned their own money and a quarter (26%) received money from a birthday or other celebration event. Around one out of six young people received EMA (15%) or borrowed money (16%), and 8% sold things to make money.
Boys were more likely than girls to have sold items to make money (12%
compared with 4%), while girls were more likely to have been given money by a family member outside of their home (43% compared with 32%).
Younger groups were more likely than older groups to receive money from their parents (89% of 12–15-year-olds, compared with 76% of 16–19-year-olds), or to get paid for doing chores at home (35% of 12–15-year-olds compared with 23% of 16–19-year-olds). Older groups were more likely than younger groups to have earned some money in the previous month (43% of 12–15-year-olds, compared with 53% of 16–19-year-olds) and to have had a part-time job (8% of 12–15- year-olds, compared with 28% of 16–19-year-olds).
While two thirds of young people (66%) had a bank account, 16–19-year-olds were considerably more likely to have one than 12–15-year-olds (87% compared with 52%).
Those from more affluent backgrounds were also more likely to have a bank account (75% of social group AB, compared with 65% in C and 63% in DE). The qualitative research showed that some young people used a credit union rather than a bank:
“[I save at a credit union because] you can’t take it out unless you need it.” [Shannon, 15, Derrylin]
Young people were then asked how they received the money they were given in the previous month. The majority (89%) received that money in cash, a third (36%) received it into their bank account, while a quarter (25%) received credit for their mobile phone and 8% had their mobile phone bill paid for them.
Girls were more likely than boys to receive money into their bank account, and to receive mobile phone credit or have their mobile phone bill paid for them.
Younger groups were slightly more likely than older groups to receive cash or mobile phone credit, while older groups were considerably more likely to receive money into their bank account (62% of 16–19-year-olds, compared with 18% of 12–15-year-olds), and slightly more likely to have their mobile phone bill paid. On average (mean), young people had an income of £87 per month (£55 median). Most of that money came from their parents (£33), from a job (£22) or from ‘another place’ (£18). Smaller amounts were received each month, on average, from grandparents (£7), from household chores (£4) or from selling things (£3).
Those aged 12–15 received an average of £58 per month, while those aged 16– 19 received considerably more (£130). Older groups received more money each month than younger groups from a job and from ‘another place’, which may have
included EMA, while younger groups received slightly more from grandparents and for doing household chores.
Each month, young people tended to receive most of their money in cash (£48) or into their bank account (£32).
While the average amount received in cash was similar for older and younger groups, the amount received into a bank account was very different; 12–15-year- olds received an average of £4 per month into their account, while 16–19-year- olds received £73.
5.7.2 Attitudes towards their financial situation
Figure 5.7.2 shows young people’s level of agreement with four statements about their money.
Figure 5.7.2 Please say how much you agree or disagree with these statements about you.
Single choice for each. Base: All NI, (953)
Having their own money was important to 87% of young people, with those aged 16–19 feeling more strongly than those aged 12–15 (89% compared with 85%). Almost half (47%) agreed that they always had enough money (50% of 12–15- year-olds, compared with 42% of 16–19-year-olds; and 42% of boys, compared with 52% of girls).
However, almost six out of ten (58%) felt that their money always goes too quickly, particularly girls (63%) compared with boys (54%), and those in social group DE (65%) compared with AB (53%) and C (56%).
Just a third (32%) agreed with the statement ‘money worries me’. Those aged 16–19 were more worried than those aged 12–15 (42% compared with 25%). Young people were worried about avoiding debt (53%), wanting a nice lifestyle (50%), finding employment (46%), paying for university (45%) and having enough money for their future (43%). Some also worried about the possibility of having to support their family (34%). One of the boys in the qualitative research described why he sometimes worried about money:
“Say your friends are going out and buying stuff and then you don’t have enough money for it and you’re left out, it’s disappointing.”
[Darren, 15, Derrylin] A third of young people (34%) also felt that they needed more money to be happy, and boys were more likely than girls to feel this way (38% compared with 30%). Older teenagers were more likely to feel the need for more money to make them happy (29% of 12–15-year-olds, compared with 42% of 16–19-year- olds). Of those who felt they needed more to be happy, the mean average amount they wanted per year was £4,900 (median average £600).
Many young people felt that more money would give them more independence or allow them to save for the future, including being able to pay for more
themselves (66%), saving for their future (54%), saving for university (42%) or being able to move from where they grew up (19%). Some wanted more money to protect themselves from future problems, such as potential unemployment (31%) or to help their family (28%). However, some wanted a better lifestyle, nice possessions (both 44%) or to buy a car (38%). Just 5% wanted more money so they would not have to work too hard.
5.7.3 Perception of changes to their situation
Young people were asked if the adults in their house were spending more, less or the same on food, utilities, activities or trips, and holidays than the previous year. Figure 5.7.3 shows the results.
Figure 5.7.3 In the last year, are adults in your house spending more, less or the same money on each of the following?
Single choice for each. Base: All NI, (953)
Most young people felt that their families had spent the same amount or more money over the past year on utilities (31% and 50% respectively) and on food (49% and 36% respectively). However, they thought that spending on luxuries had remained the same or reduced: for activities or days out 35% spent the same and 35% spent less, and for holidays 29% spent the same and 32% spent less.
Although they reported that their family had typically spent more on essentials to run their household over the past year, young people seemed to have received the same or more pocket money over the same period (27% received more, 42% received the same and 20% received less). Those aged 12–15 were more likely than those aged 16–19 to have received more pocket money (34% compared with 17%), while more of the older group saw a reduction (27% compared with 16% for 12–15-year-olds). Girls were more likely than boys to have had a reduction in their pocket money in the past year (24% compared with 17%). Despite most young people having stable or increased pocket money, when thinking about their own finances as a whole, 42% expected to have less money to spend in a year’s time and 27% expected to have the same amount. They felt the same for their parents’ finances, with 41% expecting their parents to have less money to spend in a year’s time and 34% expecting them to have the same amount. Boys and younger groups were slightly more optimistic about their own and their parents’ finances in the next year.
Young people were then asked what, if anything, they talked to their parents about relating to money. Two thirds (67%) stated that they did talk to their parents about money. They mainly talked to their parents about the cost of food and utilities (39%), what they spend money on (33%), the amount they earn (27%), spend (29%) and save (21%) and changes to the household finances (21%). Just 13% talked to their parents about the types of bank accounts or savings accounts their parents have.
Girls were more likely than boys to talk to their parents about the cost of food and utilities, what they spend their money on and the type of bank accounts and savings accounts their parents have, while boys were more likely to talk about the amount their parents earned.
One boy involved in the qualitative interviews explained why he was interested in knowing his parents’ income:
“[I’d like to know] whether they are earning enough to pay the mortgage
[so then you know] you’ll save your house.”
[Darren, 15, Derrylin] They were asked to state which of a list of statements were true about their parents. More than half felt that the adults at home wanted to save more money or had to watch what they spend (both 55%), 47% believed that their parents spent more on their children than on themselves and just 6% felt that they had plenty of money to buy everything they wanted. Furthermore, 38% thought that their parents worried about money. Less than half claimed that their parents talked to them about saving for their future (43%) and less than a fifth talked to their parents about how much money they have (18%).
5.7.4 Financial behaviour
Budgeting
In terms of keeping track of the money they spend, young people were most likely to remember what they spend in their head (54%), look in their wallet to see what they had left (44%) or use a formal method of tracking (53%). Formal methods included keeping receipts (35%), regularly checking their bank balance (21%), reading their bank statements (18%), printing mini-statements from the ATM (14%) and logging what they spend in a notebook or spreadsheet (4%). One out of ten young people relied on their parents to keep track of their money or did not track their money at all (both 10%).
Girls were more likely than boys to use formal methods of tracking their money (63% compared with 44%) and older groups were more likely than younger groups (70% of 16–19-year-olds, compared with 42% 12–15-year-olds). Young people suggested that they were forward planning with their finances. Around seven out of ten young people (69%) claimed that they did not spend money if they thought they would need it for something else. One boy in the qualitative interviews explained how he budgeted with his lunch money:
“If you’ve got your pocket money for school, you don’t want to be spending it on stuff because you need it for school, for lunch. You have to budget for that.”
[Darren, 15, Derrylin] A third of young people (33%) claimed that if they ran out of money, they got more from someone at home. The same boy as previously mentioned explained why being able to get more money was not always sensible.
“The more money you have, the more you spend. If you need something
you can just ask for it. I would spend it on pointless stuff.”
[Darren, 15, Derrylin] Saving money
Three quarters of young people (76%) saved money in the previous month; 8% saved all of their money, 18% saved most of it, 20% saved half and 30% spent most and saved some. Boys were more likely than girls to have saved some money (79% compared with 73%). Those from less affluent backgrounds (social group DE) were more likely than others to have spent all of their money in the previous month (28% of DE, compared with 16% of ABs and 18% of C). When asked to provide an approximate figure for the amount they saved each month, half (51%) provided a figure, a third (32%) said that they did not save regularly and the remaining 16% were unsure. Regular savers saved an average (mean) of £37 per month (£20 median).
Boys were more likely than girls to give a figure for how much they saved, while girls were more likely to state that they did not save regularly (37% of girls, compared with 28% of boys).
The amount saved on average per month increased steadily with each age group, from £20 among 12-year-olds, to £34 among 15-year-olds, up to £104 among 18-year-olds. Those aged 16–19 saved twice as much, on average, as those aged 12–15 (£57 per month compared with £25).
Among savers, although some saved for shorter-term purchases planned for the next week (20%), next month (26%) or next year (25%), many were saving for their future (40%) or were unsure of what they were saving for (37%). Younger groups were more likely than older groups to be saving for something in the more immediate future.
The things that young people were most likely to be saving money for included clothing (55%), to be able to socialise with friends (47%), or technology items (42%). Other popular items to save for included trips or holidays (28%), university (26%) or driving lessons (25%).
Young people tended to look after their savings themselves at home (61%) or in their bank or building society (51%). Some young people relied on their parents to look after their savings for them (15%).
Girls were more likely than boys to save money in a bank or building society (56% compared with 47%). Those aged 12–15 were more likely than those aged 16–19 to look after their own money at home (71% compared with 48%) or to rely on an adult at home to look after it (20% compared with 8%), while 16–19- year-olds were more likely than 12–15-year-olds to save money in a bank or building society (77% compared with 32%). Those in the lower social groups were least likely to save money in a bank (42% of DE compared with 58% of AB and 54% of C).
According to young people, their parents (84%) and grandparents (34%) were most likely to encourage them to save money. Less than one out of ten felt that their friends (8%), teachers (8%) or the media (6%) encouraged them, and 4% claimed to encourage themselves to save. However, more than one out of ten young people (13%) felt that no-one encouraged them.
Figure 5.7.4 shows young people’s attitudes towards saving money. Figure 5.7.4 Please tell us how much you agree or disagree with the following statements.
Single choice for each. Base: All, NI (953)
The chart shows that young people had positive attitudes towards saving. The majority agreed that ‘it is important to save money’ (90%) and a similar
proportion disagreed with the statement ‘there is no point in saving’ (86%), although boys were slightly more likely than girls to agree. Three fifths (61%) claimed to be saving more than they used to. In practise some found saving
difficult; less than half (43%) found it difficult to save money or felt that they were good at saving money (47%).
Boys were more likely than girls to be positive about their saving habits. Boys were more likely to save more money now than they used to (69% compared with 54% of girls), to think they were good at saving (53% compared with 42%) and to disagree with the statement ‘I find it difficult to save money’ (45%
compared with 34%). One boy explained why saving money was important:
“[It’s important to save for] when you have no job and you need money later.”
[Noel, 15, Derrylin] When asked what advice they could give to their peers about managing their money, another boy advocated starting to save when you are young:
“Save as much as you can because you can’t rely on your parents, you
need to open an account and get a job, start putting money in […] If you are going to buy something that will put you in debt, think if you could wait a tiny bit longer […] Start saving early and get a good head start.”
[Darren, 15, Derrylin] Spending
The mean average that young people spent in the previous month was £109 (£80 median). Most was spent on clothes or shoes (£34), socialising (£25), technology (£18), or food (£18); while a smaller amount tended to be spent on driving lessons (£9), sports or hobbies (£9), and music (£2).
Girls spent more than boys on clothes, socialising and driving lessons, while boys spent more than girls on technology and sports or hobbies.
On average, those aged 16–19 spent more than those aged 12–15 (£129 compared with £96), and in particular spent more than younger teenagers on socialising, food and driving lessons.
Young people were then tested for their knowledge of credit and debit cards. Only a third (35%) were aware that PIN stands for ‘personal identification
number’. However, there was fairly good awareness of how they work, with 62% correctly identifying at least three aspects, such as ‘a number with four figures’ (71%), ‘a number that should be secret’ (65%) or ‘used at the cashpoint’ (57%). They were then asked what you should do when you receive a new credit or debit card and were given a list of options. More than half of young people knew that a new debit card should be signed (54%) or the old card cut up (58%), but just 36% knew that you should do both. Three fifths (61%) thought that you needed to call the credit card company to activate it, and half (47%) thought that you should set a new PIN number.
Girls and older groups had a better understanding than boys and younger groups of PIN numbers and debit cards.
5.7.5 Borrowing money and attitudes towards debt
Young people were asked how important it is to consider certain factors when applying for a loan. They had a good understanding overall. More than four fifths felt that it was important to think about how much they could afford to repay (86%), the amount of time they needed to repay (85%) and the amount of money they needed to borrow (84%). They were less sure about needing to consider the APR (33% did not know) and just 22% felt that it was important to borrow as much as they could.
Boys were more likely than girls to consider it important to look into the APR, while girls were more likely to consider the amount of time needed to pay back the loan and how much they could afford to pay back. Older groups were more aware than younger groups of the importance of considering the amount of money needed, the amount they could afford to repay, the time needed and the APR.
When asked to imagine taking out a loan at an APR of 15%, only a third of young people (33%) correctly identified the most expensive loan duration and 45% said that they did not know. Those aged 16–19 were more likely than those aged 12–15 to select the correct answer.
Thinking about their future, only a third of young people (32%) expected to get into debt, a quarter did not (23%) and two fifths were unsure (43%). The 16–19 age group were more likely than the 12–15-year-olds to expect to get into debt at some point (40% compared with 26%).
To put these figures into context, young people were then asked what they considered as debt. Figure 5.7.5 shows the results.
Figure 5.7.5 Which of the following would you consider as debt? Multiple choice. Base: All, NI (953)
Owing money to a credit card company was seen as debt by the largest
proportion of young people (74%). Almost three fifths viewed a bank loan as debt (57%), while bank overdrafts (47%), student loans (43%) and mortgages (42%) were seen as debt by less than half of all young people. Owing money to a member of their family or to a friend was considered debt by just a quarter of young people (both 26%).
The majority of young people (90%) expected to have debt around the age of 25, although only 18% guessed how much that would be. £10,400 was the mean average amount they expected to owe at 25. On average, those aged 16–19 expected to have almost three times as much debt as those aged 12–15 by the age of 25 (£15,400 compared with £5,300).
Young people were then given a list of amounts of money and were asked which they felt would be a lot of debt to get into. More than half (56%) felt that £5,000 was a lot of debt and almost three quarters (73%) thought that £10,000 was a lot of debt. Considering that young people expected to be in £10,400 of debt by the age of 25, they may have felt that they were going to get into a lot of debt in the future.
Almost three quarters of young people (72%) said that they worried about getting into a lot of debt in the future, with girls more likely to be worried than boys (76%