Under-18s becoming financially savvy to avoid future debt?

People under the age of 18 are becoming increasingly financially savvy in an attempt to prevent themselves experiencing debt concerns in later life, new research has indicated.

The latest Marks & Spencer (M&S) Under-18’s Work and Money Survey 2010 has revealed young people in the UK are showing maturity when it comes to handling their money.

More than 3,000 youngsters were involved in the study, which showed a child aged eight or nine has an average monthly income of £9.70 – and this amount escalates to £219 by the time they reach 18.

In addition, it appears the younger generation is also in the habit of saving money.

The investigation found 50 per cent of those aged between eight and 13 – nicknamed tweens – are putting aside a significant portion of their cash, while 30 per cent of teenagers are doing the same.

It was also revealed 39 per cent of eight to 13-year-olds are more likely to help out around the house to earn extra pocket money.

Moreover, 72 per cent of tweens and 87 per cent of teenagers claimed they would like to have a part-time job by the age of 18 as it would assist them with their future employment prospects and help teach them about responsibilities.

Amanda Newman, head of marketing at M&S Money, said: “The survey shows that Britain’s eight to 18s are clued up and motivated by money and work to a surprisingly mature extent.”

A recent study conducted by Halifax found many parents are not ‘in-the-know’ financially when helping their children with big-money purchases, such as buying a house. Similar reports have found that one fifth of teenagers want to avoid being in debt, with many scared about the prospect of owing money.

By Amy White