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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 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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