A new study by VoucherCodes.co.uk into children's relationship with money has found that kids between the ages of 11 and 18 believe adults need to earn £43,000 a year to be financially sound, a whopping 62% more than the UK's average annual salary. More humorously, those between the ages of five and ten believe adults need to earn a modest £9,740,000 a year to get by.
Despite recent headlines suggesting that property prices are currently rising at twice the rate of earnings, the survey of 1,000 UK children between the ages of five to eighteen also revealed that on average children believe they will be able to buy their own home at 27, with those in the North East thinking they'll wait the longest, expecting to be 30 before becoming a homeowner.
Yet they are not completely immune to the gloomy headlines, as the study revealed nearly one in ten children (9%) don't think they will ever be able to afford their own home, with 15 year olds feeling the most pessimistic; a fifth (20%) believe they will never afford to buy their own home.
When asked to think about their family budget, one in ten children highlighted their financial concerns further, saying they often worry about how much money their family has, with a fifth (17%) of 16 year olds confessing they often worry about family finances.
When it comes to discussing the family's financial situation, a third (29%) of kids say their parents talk to them about their pocket money and how the family should spend money, however a further 14% claim their parents never talk to them about how the family spends money. This rises to nearly one in five (19%) in single-child families, suggesting that larger families are more vocal about budgeting.
When it comes to financial stability, going on holiday tops the list of indicators of family financial success for children, with 39% of kids stating going away at least once a year or travelling abroad (38%) is the number one sign of their family having enough money. Getting pocket money each week is the key indicator of financial comfort for a third of children, with a lucky 76% of kids getting pocket money from their parents each week.
Top six indicators of family financial success for kids:
- Going on holiday at least once year (39%)
- Going on holiday abroad (38%)
- Having a car (38%)
- Going to restaurants with my family (37%)
- Getting pocket money each week (36%)
- Having lots of toys (30%)
Other indicators of familial wealth included having the newest games console or gadget (26%), living in a big house (25%) and not having any debt (25%).
Claire Davenport, General Manager, VoucherCodes.co.uk commented "It's so interesting to gain some insight into how children feel about money and their future, especially in a climate of contradiction where we're seeing greater consumer confidence but also soaring house prices and spiralling rent costs. These conditions are making it difficult for aspiring young homeowners to secure mortgages and save deposits, so it's more important than ever to educate children about money from a young age."
"Teaching kids the basics of family finances early on can prove really beneficial in helping them get to grips with money and understanding the importance of budgeting - allowing them to see how it's possible to save for great holidays and meals out by making clever savings on day to day spending. Keeping kids informed also helps them understand the limits of the family budget - perfect for those times when they're tempted to pester for treats or the latest technology."