Financial Adolescents vs ‘Thrifty 50s and 60s’

Children of 1970 Report reveals generation gap in attitudes towards finance –

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Thirtysomethings in Britain are stuck in a state of ‘financial adolescence’ as they spend recklessly without worrying about debt and seem little concerned about their financial future. ; That’s the view of their parents’ generation, according to the Children of 1970 Report published today by AXA.

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AXA’s research compares attitudes towards finance between people born 35 years ago – the ‘Children of 1970’ – and people aged in their 50s and 60s – their Parents’ Generation – and throws up some striking differences towards saving, spending and planning for the future. ;

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It also reveals that while the older age group is better at planning ahead, the thirtysomethings are anxious to follow their example and start to ‘grow up’ financially.

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Financial Adolescents vs ‘Thrifty 50s and 60s’

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When questioned, a third (35%) of the Parents’ Generation felt the Children of 1970 spend recklessly and don’t seem to worry about debt:

§ ; ; ; ; ; ; ; ; Over 4 in 10 (43%) felt the younger group have little concern for the future and aren’t saving enough

§ ; ; ; ; ; ; ; ; Only 5% said today’s 35-year-olds are frugal and lived well within their means

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By contrast, the Children of 1970 see their parents as a generation of ‘Thrifty 50s and 60s’, saving for the future and taking a measured approach to money:

§ ; ; ; ; ; ; ; ; Around 4 in 10 (39%) thought their parent’s generation are frugal and live well within their means, even if that means denying themselves luxuries

§ ; ; ; ; ; ; ; ; Over half (57%) said their parents save regularly – but also use money to enjoy life now

§ ; ; ; ; ; ; ; ; A mere 5% said their parent’s generation spend recklessly

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Premature Financial Ageing (PFA) for today’s 35 year olds

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Many of today’s 35- year-olds are in fact suffering from ‘Premature Financial Ageing’ (PFA), increasingly they are more worried about their financial future than their parents were at the same age. ; More than a quarter of Children of 1970 (27%) admit they are concerned by their lack of savings, and more than half (56%) try to save but say they can’t manage to do so regularly.

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The number one sign of financial success for the Children of 1970 is to get out of debt, with around a third (33%) giving this as their current financial goal. ; ; By contrast, only 5% of parents at the same age had this aim, their number one financial goal being able to spend more, and afford luxury items such as cars, holidays and clothes, with a quarter (24%) saying this was their target when they were 35.

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Credit and debt

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Both generations seem happy to hold credit and store cards with just 17% of the Children of 1970 and 10% of their parents’ generation not having any credit. ; But attitudes to managing that debt vary greatly:

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§ ; ; ; ; ; ; ; ; Around half (46%) of the older age group pay off their credit card balance every month compared to just a third (33%) of the thirtysomethings ; ; ; ; ;

§ ; ; ; ; ; ; ; ; The younger age group are twice as likely to just pay off the minimum balance compared to their parents’ generation (19% vs 10%)

§ ; ; ; ; ; ; ; ; Children of 1970 are also more likely to be in debt. One fifth (21%) have debts of £5,000-£15,000 compared to their parents’ generation (14%). One in six of the thirtysomethings (16%) owe more than £15,000 compared with just one in 10 (10%) of the older age group.

§ ; ; ; ; ; ; ; ; Careful budgeting is the norm for nearly half of 50- and 60-somethings (46%) compared to four in ten (38%) of Children of 1970

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Both groups say it is only through their own successes and failures with money that they have learned to manage their finances. A third of both generations (37% of Children of 1970 and 33% of the Parents’ Generation) said personal experience had been their major influence in moulding their financial management skills. The second biggest influence for both groups was their parents, cited by a quarter (25%) of Children of 1970 and a fifth (19%) of the older generation.

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David Williams, AXA, said: “There’s a common perception that those brought up in the ‘have it all’ years of Thatcher are more reckless with their money and have a more haphazard approach to saving than their parent’s post-war generation. This report shows that in fact the Children of 1970 are increasingly concerned about their financial welfare, with different priorities than their parent’s at the same age.

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“However, the parent generation seems to have developed more astute financial management techniques, sticking to budgets and paying off credit regularly. ; Despite today’s thirtysomethings good intentions, they still need to prioritise and think pragmatically about how to build a secure financial future. ; But with both generations citing the university of life and their own experience as being the main influence on their money management, there is hope for the Children of 1970 yet.”

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AXA’s Children of 1970 report studied the financial situations and attitudes towards managing money of 35 year olds and their parents’ generation. The comprehensive study interviewed 500 people born in 1970 and 500 people who have children born in 1970 across the UK, supported by qualitative research.

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These findings are based on qualitative research of 10 people across the UK alongside quantitative research of 500 people born in 1970 and 500 people with children born in 1970, across the UK. ; The research was conducted by independent research group, Vanson Bourne in May and June 2005.

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For More Information contact: ;Sandra McLaughlin Sandra.McLaughlin@axa-uk.co.uk

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All of the above text is a press release provided by the quoted organization. globalagingtimes.com accepts no responsibility for their accuracy.