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Optimistic teens expect £22k salary and a house by 25

Teenagers are confident about the prospects for their careers and finances, but their parents are expecting a lot less.

 

by Michelle McGagh on Aug 23, 2012 at 00:01

Optimistic teens expect £22k salary and a house by 25

Optimistic teenagers expect to buy their first home at age 25 and earn £22,600 in their first job, but their parents are more pessimistic, with a third expecting to support their children financially for the rest of their lives.

GCSE students receive their results today, and many teenagers are clear about what they want their careers and finances to look like. They are very optimistic...

Jobs: healthcare for girls, IT for boys

According to a survey by JP Morgan Asset Management (JPMAM), healthcare continues to be the career path of choice for girls, with 22% choosing the profession, followed by education and fashion. Boys are aiming for careers in IT, with 16% choosing this option, followed by engineering and healthcare.

A total of 27% of children hope to own their own company, although more boys than girls want to be their own boss.

However, parents of teenagers have a much bleaker view of their career prospects, with just 12% expecting their children to reach the top levels in their career.

Expectations gap between generations

The gulf between teenage and parental expectations is also clear when it comes to the financial future children believe they will have.

Over a quarter, 27%, of teenagers expect their first salary to be £22,600 or more and expect to buy their first home at the age of 25 – five years earlier than the average first-time buyer in the UK. The plan to gain financial independence early is admirable, but 35% of parents surveyed said they expect to continue supporting their children financially for the rest of their lives.

Keith Evins, head of UK marketing at JPMAM, said today’s teenagers are aiming high, and that parents could help their children achieve their aspirations by starting a small savings pot for them.

‘Starting from £50 per month, parents and grandparents can save tax-efficiently into a Junior ISA (individual savings account), helping give their children and grandchildren a leg-up when it comes to take the next step,’ he said.

‘Whether saving for a deposit for their first property or paying for a wedding, using a Junior ISA is an efficient and easy way to save for a child’s future.’

Rising costs of university

Parents looking to start saving early could use the Junior ISA allowance of £3,600 to put money aside for university fees.

Over three-quarters, 78%, of teenagers surveyed said they will attend university although they underestimate the cost – 24% said it would cost between £10,000 and £15,000 a year, when the actual figure is around £17,352 a year when tuition and living costs are factored in.

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4 comments so far. Why not have your say?

S G

Aug 23, 2012 at 13:06

£50 a month, its a good idea but in reality this is very difficult to achive.

Throw in if you have 2 or more children, that suddenly jumps to over £100 a month extra.

Trying to save for your children is a good thing, but it is already difficult, and it is only going to get harder.

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sgjhaghsdg

Aug 24, 2012 at 12:28

Our starting salary for grads is £24k (computer engineering work in the gritty North) and you can buy a 3 bed semi here for £60k so the house isn't out of the question either.

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S G

Aug 24, 2012 at 12:49

Down sout you are probably looking 26 to 27k with 3 bed semi for £180k.

What does get on my nervous is people who think they are entitlted to a job where they live. It seems the majority of people will not move to look for work.

Hopefully the younger generations with their gap years etc, will be more comfortable moving away, and will more likely relocate to look for that job they want.

So areas of the country have loads of jobs available, but people would rather be unemployeed then move.

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Anthony Palmer

Aug 24, 2012 at 15:25

In the South, pie in the sky, but there is nothing like ambition. Without a 50% deposit on a two bedroom flat in Southampton from us, my daughter would never have got on to the housing ladder. Oh and a car oh and paying off her loans so that she started with a clean slate. She is a graduate from Southampton University, but alas employed by Premier Foods. Enough said.

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