The summer holidays are in full swing, but 35% of teens are being “carefree” or not very careful with their cash, Equifax research reveals.
The credit reference and global information solutions company, has found that 40% of 13 to 18 year olds have a debit card and among this age group, 5% make online purchases once a week, with a further 5% shopping online once a month. This increases to 29% of 17 year olds making it at least one purchase a month.
But over a third (35%) of teens admitted to being carefree with their spending, increasing to 45% for 17 year olds, which is a cause for concern as they are on the brink of being able to access credit.
Equifax warns that not being circumspect about spending now means that later down the line, these teens may face severe problems when it comes to managing their finances.
The findings come despite personal finance making an entrance onto the national curriculum in 2014.
However, 34% of teens undertake chores around the house and 25% have a part-time job, which should help to provide them with the groundwork for money management.
Equifax also found that parents are influential when it comes to spending habits. Teens are more influenced by their mums’ spending habits, in particular, than their dads’, with over half, (55%) of 13 to 18 year olds asserting to have adopted their mum’s spending habits.
‘It’s vital young people have access to financial education’
Lisa Hardstaff, consumer credit information expert at Equifax, comments: “It’s important to have the right foundations from an early age to ensure that young people continue to manage their money well throughout their life.
“Having a debit card and managing a monthly budget equips teenagers with the responsibility of managing their own finances. However, it’s vital that young people have access to education that equips them with the skills and understanding they need in order to stay in control of their finances and have a positive experience with money as they grow older.”