CUs LAUNCH 'CLUED-IN' – A NEW FINANCIAL EDUCATION TOOL FOR SECONDARY SCHOOLS

Media Release: 22 February 2015

7 in 10 teens receive pocket money from their parents; of these 74% receive it on a weekly basis

18% of teens now receiving more pocket money than 12 months ago

75% of teens save approximately a quarter of their pocket money

45% putting money aside for a phone / computer or other technological products

28% are saving for a holiday, 21% for music / DVD downloads and 17% for college

82% of teens have a least one savings account, 51% saving with the credit union, 48% with a bank and 21% with the Post office

Mums more likely to talk to their kids about money & personal finance issues

42% of parents don’t believe that their teens have a basic understanding of personal finance issues

72% of parents don’t believe schools are doing enough to educate their teens on money matters

92% feel that there is a need for a resource available to teens in school to educate them about money

20% of Irish teens aged between 16 and 18 have a part-time job

9 in 10 parents with children intending on going to college are worried about the costs

25% of parents plan on funding their children’s in entirety, 45% say the can fund this cost completely but would like their child to have a part-time job anyway and 22% say that their child will need to work to part-fund college.

73% of parents still do not believe that Ireland is out of recession

 

Following their 2015 Youth Conference this weekend in Tullamore, the Irish League of Credit Unions has announced the results of their Teens and Money Survey. The ILCU have also launched 'Clued-In' a new secondary school resource aimed at educating teens about money.

The study asked parents of teenagers about issues like pocket money, what their children are spending on, savings, their children’s understanding of money matters, going to college and working part-time.

The impact of austerity and recession is still being felt in families across the country and there is now more so than ever a need to educate young people about how to sensibly manage their money. While Irish parents agree that they have the greatest influence on how their children understand and approach money, 71% felt that there was not enough being done at secondary school level to support them.

 

THE SURVEY RESULTS

 

Pocket Money

Just over 7 in 10 teenagers receive pocket money from their parents. 74% of these teens receive money on a weekly basis, 15% on a monthly basis and 5% every second week. 6% get a hand out each day.

 

73% parents give pocket money to their teens

Daily

Weekly

Biweekly

Monthly

All

6%

74%

5%

15%

 

Over all on average a teenager will receive the following amounts across the month:

 

 

Daily

Weekly

Biweekly

Monthly

€9

€13

€26

€23

 

The value of pocket money has changed for 3 in 10 teenagers over the past 12 months. 18% of teenagers get more pocket money in 2015 than they did in 2014 while 11% now receive less pocket money.

 

Savings

75% of teens who receive pocket money save a part of it. On average, teens save a little over a third of their pocket money. Of those that are saving 45% are putting money aside to buy a new phone, computer or technological gadget, 28% are saving for a holiday, 21% for music / DVD downloads and 17% for college.

 

What they are saving for?

All

Phone, computer & other technology

45%

Holiday / Travel

28%

Music / DVD  downloads

21%

College

17%

Car

14%

Don’t know

11%

Other (Game console, Toys, Social life, Clothes)

10%

 

82% of teenagers have a least one savings account. 51% of teens are saving at the credit union, 48% are saving with a bank and 21% have a post office account.

 

Speaking to Teenagers about Money

 

While 82% of parents say they speak to their children about personal finances, only 28% do so on a regular basis. Females are more committed to educating children about money issues than men with Mums more likely to talk to their children about money issues than Dads.

 

Who is more likely to talk to your children about money issues

                             All

Males

Females

Mum

40%

20%

52%

Dad

11%

25%

3%

Both equally

49%

55%

45%

 

Teaching Young People about Money

There is a general consensus amongst Irish parents that they have the greatest influence on their teenager’s education and understanding of personal finance issues.

 

Greatest influence

All

Parents

75%

Family members

14%

Teacher /School

5%

Friends

4%

Other (Celebrities, Jobs, Themselves)

2%

 

Just over 7 in 10 parents think schools do not do enough to educate young people about how to manage their money. 92% feel that a resource should be made available to young people in schools to help educate teenagers about money matters.

 

Schools doing enough to educate young people  on managing money

All

Yes

28%

No

72%

 

The most popular topics that parents would like schools to teach their children are:

  • Savings and investments for the future
  • The reality of how much things really cost
  • How to manage a budget, running a household and breakdown of household bills.
  • The realities of debt, borrowing and dangers of it.
  • Understanding the banking system, financial jargon, interest rates, understanding bank statements and business documents.

 

Third Level Education

9 in 10 parents with children intending to go on to 3rd level education are worried about the associated costs.

25% of parents plan to fund the full cost of 3rd level for their children

45% say they will fund the cost but would like their child to have a part-time job to earn more pocket money.

A further 22% said their teen will have to work to help pay for college as their parent’s won’t be able to fund the full cost.

8% of parents say their teen is already saving to part fund the cost of going to college.

 

 Launch of ‘CLUED–IN’ – A Money Education Tool For Secondary Schools

The ability to read and write is rightly viewed as being integral to an individual’s ability to get on in life and take an active part in society. However, the area of financial literacy is one which receives scant attention but is an important skill.

Financial literacy is a distinct skill from those of maths and reading. It is the ability to understand how money works and make informed and effective decisions about using and managing it. Financial capability is essential in today’s world.

For young people especially, the ability to oversee their finances has never been more important: from learning how to budget to managing their borrowings; understanding forms and sources of credit, to understanding how to have a positive relationship with money. Above all, if money skills are learned at an early stage, it is likely that they will stay with you for life.

The health of a person’s relationship with money is not determined by how much a person earns. Rather, financial health is having a conscious and sensible attitude to money that is satisfying and doesn’t put an unnecessary burden on the individual. It is about being in control.

Clued-In is a resource aimed at second level students which explains personal finance in a concise, easy to follow, engaging format. The resource helps to explore people’s relationship with money, good and bad, and looks at ways to make smarter, more informed decisions.

 

For further information visit www.creditunion.ie/cluedin or why not take a look at our CLUED-IN video here.

Speaking about the survey results and the launch of ‘Clued-In’ Ed Farrell, Acting CEO, ILCU said: “We can clearly see from this survey that parents of teenagers are looking for better support in educating their children on understanding and managing their finances. Mums are doing the bulk of the work in this regard. 73% of parents do not believe that this country is out of recession and the new social and financial reality of life in Ireland means that having a solid understanding of basic financial principles for our young people is extremely important. It is vitally important that we continue to educate our younger members about the merits of investing in their own futures, by sound financial planning and responsible money management. This is why the credit unions have launched this new financial resource – CLUED – IN”

 

About the Survey / Methodology

The independent survey was conducted by Market Research Company iReach during the period January 2015 using the iReach Consumer Decision Research Panel which delivered 1,000 responses and is nationally representative by Age, Region, Gender and Social Class. This research has a confidence level of 95% and a confidence interval of 4%.

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