Research Summary on Young people and Financial Matters : By FSA

Introduction
1. Background
This document reports the findings from  research into young people (15-19 years old) and their financial matters undertaken by NOP Family and NOP Financial on behalf of the Financial Services Authority (FSA). 
One of the statutory objectives of the FSA is to promote the public understanding of the financial system. The understanding of financial matters is of particular importance to the 15-19 year old age group now and in the future. This group is faced with many life changing events, for example leaving school, starting a first job, going to university, which result in the need for an array of financial products, services and money management skills.
Young people own a range of financial products.  Over four fifths (81%) of 16-19 year olds have a current account but only 39% have a savings account. There are lower levels of uptake of other financial products: 18% of 18-19 year olds hold a credit card; 12% hold at least one store card; 17% have motor insurance. As would be expected, there are very low levels of uptake of investment products amongst this group, for example only 2% have stocks and shares compared with 21% of all adults.
 Although young people own financial products this does not tell us about their level of financial knowledge and understanding. The purpose of this research was to enable a better understanding of the key influences and the points of influence on the attitudes and behaviour of young people towards and around money and finance. This understanding will be used to help the FSA to develop more relevant interventions and to determine when such interventions might be most effective in changing young people’s behaviour and knowledge regarding financial matters.

2. Research Objectives

The overall objective for the research was to look at young people and the influences
and points of influence on their attitudes to money and finance and their behaviour
around these. 
Specific objectives included:
•  To find out what influences young people’s financial behaviour, understanding
and knowledge, the extent of that influence and why it influences them
•  To determine whether schools are providing pupils with adequate education
regarding finance and managing money and pin point any improvements that
could be made
•  To find out what hopes and fears young people have regarding their financial
future, how they think these can be achieved or addressed and what shapes
future expectations

Particular areas for consideration within the research included:
•  Financial products and services held or used
•  Factors influencing product choice
•  Influences on financial attitudes and behaviour (e.g.  handling money; savings;
credit and debt; pensions)
•  Life events past, present and future and associated financial preparation
•  Financial education in schools
•  Interest in financial services
•  Knowledge of financial services
•  Hopes and fears for their financial future