education Teens are out of touch

Young people are misguided about their financial futures to the tune of 482bn, according to research by NatWest. The bank's analysis showed a gap of 69,000 per person in the expectations of 11- to 19- year-olds on home ownership, debt and earnings, compared with the average financial situation of individuals in the UK.

The young people interviewed expected to earn, on average, in excess of 30,000 a year and to own their own home by the age of 25. They saw themselves as owing less than 10,000 in student debts after university, and thought they would have started paying off that debt by the time they graduated.

But the current average salary of 22- to 29-year-olds is 17,817, according to the bank, and the average age of a first-time homebuyer is now over 30.

The teenagers' inability to identify the cheapest loan from a choice of four products raised further concerns.

"A hopeful generation of young people is not necessarily a bad thing," said Stephen Moir, head of community investment at Royal Bank of Scotland, which owns NatWest. "However, a realistic approach is crucial in equipping the next generation to face its financial challenges."

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