Teens expect to earn £70k by the age of 30
Whether it is securing their dream job, getting onto the property ladder or travelling the world, teenagers have big ambitions for their futures, according to research from financial services company OneFamily.
Around 45% of a sample of 2,098 teenagers aged between 13 and 19 expected to be in their dream job by the time they reach 30. They cited engineer, teacher and psychologist as the most desirable roles.
Meanwhile, one in five suspected they will have set up their own successful business by the age of 30.
Only 11% of the sample wanted to pursue trendier career paths, such as becoming a coder, Instagram star or video game developer, with the majority favouring more traditional professions.
The average teenager said they expected to earn £70,000 by the time they turn 30. This is close to three times the average salary for 30-year olds and is earnt by only one in 20 adults during their entire career, according to HMRC data.
Although the teenagers surveyed had high expectations for their future earnings, they were keen to do something they are passionate about rather than simply making money. Helping society was seen as more important than gaining social status.
Around 47% of respondents expected to be on the property ladder by the age of 30, while 41% suspected they would be married with children by the same age. The average expected age to go travelling was 23.
Steve Ferrari, managing director of children’s savings at OneFamily, explained: “Many teens are expecting significantly higher than average salaries, which highlights the importance of helping them to understand money.
“Parents can do this by encouraging their children to get a part-time job, or suggesting they save up their pocket money to afford bigger expenses.”
As teens appear to have multiple life goals, Ferrari suggests encouraging a savings culture by helping them understand the benefits of saving into products like Junior ISAs.
Top tips to help your teen understand the value of money
Here are OneFamily’s top tips:
Time to talk
Sharing your own financial experiences with your children can open up conversations about finance which they can relate to. This can help them to understand how to manage their money.
Teach your teenager about the importance of managing their money. Changing their allowance from weekly to monthly helps them to get into the habit of planning ahead and saving for future expenses, which might encourage them to make their money last longer.
Earning and learning
Encouraging your teenager to start a part-time job is a useful way for them to learn that time equals money. Once they have an income, they’ll quickly learn two important lessons. Firstly, that you only earn what you’re prepared to work for. And secondly, you only save what you don’t spend.
Aiming for goals
You get a sense of real freedom for the first time during your teenage years. Whatever your child is into, use that as a way to encourage them to save. Ask your teen to list all the things they want, then help them to put together a timeline for achieving these goals by saving their earnings and allowance.
Calculating the costs
The true costs associated with adulthood can come as a surprise. Try asking your teenager how much they think utilities (such as electricity and gas bills) cost to see if they are on the right track.
Security is key
Encourage your teens to use secure apps and websites, create passwords for their details, and regularly check their bank balance and activity.