A tenth (10%) of people aged between 18 and 21 mistakenly believe that stamp duty pays for the cost of posting letters, rather than being a tax on house purchases.
Research by Halifax found that children and young adults have many humorous – but also worrying - misconceptions about the housing and mortgage markets.
One-in-five (20%) kids aged between 11 and 14 believe the amount they can borrow on a mortgage is unlimited, while 33% of this age group expect their parents to cover the entire cost of their house.
These misperceptions in childhood remain in place into adult life, with a quarter of those aged between 18 and 21 expecting to be homeowners by the time they’re 25 - much younger than the average UK first-time buyer age of 30, or 32 for those buying in London.
Despite this confusion, home ownership remains a big aspiration among young people with 59% of 18- to 21-year-olds saying they feel it is important to own a home.
Russell Galley, managing director at Halifax, says: “Despite being one of the most important financial decisions we’re ever likely to make, becoming a homeowner feels like a mystery for Generation Z who will soon be thinking about flying the nest.
“Although our research found that the vast majority of 11 to 14-year-olds understand what a mortgage is, one in 10 aged 18 to 21 think stamp duty is money to pay for stamps – so there’s clearly a job for all of us to help kids get a better idea of what’s involved with taking the first step on to the property ladder.”
Moneywise’s Get Financial Education Working campaign aims to encourage the teaching of financial education both by parents and grandparents, and by teachers in schools.
Our 2018 Personal Finance Teacher of the Year competition has now launched. This offers £12,500 in prizes to the best primary and secondary school teachers in the UK to spend on equipment.