Young people feel their mothers are better at managing money than their fathers, the latest Young Persons’ Money Index*
from The London Institute of Banking & Finance reveals.
Fathers were rated noticeably lower than their mothers in their ability to manage a household’s finances, with 63 per cent being viewed as either “very good” or “good”, compared with 72 per cent of mothers. 11 per cent of fathers were seen as being either “poor” or “very poor” in managing money, compared to 7 per cent of mothers. This is despite the fact that of the 8.8 million people struggling with debt in the UK, 64% are women (Money Advice Service).
The new findings also highlight that 80 per cent of students name their parents or family as their prime source of financial understanding. The majority of teenagers say they rely on their family to make financial decisions for them; 78 per cent say their parents either directly chose their bank account for them, or they chose an account based on their parents’ preferences.
However, the findings also reveal that fewer female students are currently learning about financial education in comparison to their male counterparts. Only 36 per cent of girls say they receive lessons on money management compared to 45 per cent of boys, despite female students making up a higher proportion of university entrants each year .
Alison Pask, Managing Director, Financial Capability and Community Outreach at The London Institute of Banking & Finance, said:
“Teenagers today are facing a whole different suite of financial pressures than their parents most likely faced, which, when combined with a rapidly-changing financial system, governed by technology, present new challenges of its own. Regardless of who in their household teenagers views as being better with money, the fact that so many are solely reliant on their parents, who themselves are unlikely to have had a formal financial education, for their understanding of personal finance, is concerning. With the UK’s collective personal debt standing at £1.503tn – or £1,036 per person – this is not the legacy we wish to pass on.”
You can view the key findings from the Young Persons' Money Index or read the report in full here