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UK teenagers have high earnings hopes

UK teenagers have high earnings hopes

Category: Money

Updated: 30/03/2010
First Published: 30/03/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Teenagers in the UK expect to earn more than £30,000 a year by the time they are 25 and almost £52,000 when they are 35.

Figures from NatWest show that 12 to 19 year olds expect to draw a salary of £31,000 when they are 25. This is considerably more than the average wage for 22 to 29 year olds of just under £21,000.

In addition, more than six in ten teenagers (61 per cent) expect to be able to buy a home by the time they are 25. Currently, just 14 per cent of homeowners in the UK are under 25.

The expectation for earning potential by the time teenagers turn 35 is even higher. On average, the UK's 12 to 19 year olds think they will demand a salary of £51,800 by the time they are 35.

At present, the average wage for somebody aged 30 to 39 is £28,933.

And 85 per cent of respondents said they thought they would be a homeowner by the time they were in their mid-thirties.

While the future expectations of the UK's teenagers jars slightly with reality, it does appear that they are emerging from the recession with more money sense.

Over two thirds of the 10,000 youngsters surveyed said their money management had improved since the downturn began, with a third of boys saying they made an effort to save, compared to a quarter of girls.

Boys were also found to be most likely to earn money in some way, such as household chores or a part-time job.

Eleven to 13 year olds are most likely to save all of their money, while 14 to 16 year olds are more likely to spend their funds. Eighteen year olds were also found to have developed good savings habits, indicating a sensible approach as they reach adulthood.

"The results from this year's panel demonstrate that young people recognise the importance of money management and the need to make prudent financial choices," said Sarah Nearly, head of the NatWest Moneysense Panel.

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