British teens don't know how to save money and their parents are paying the price

Daily Mirror

28-04-2025

New data has revealed that teens are falling short when it comes to financial comprehension. As a result, parents are taking responsibility for their teens' financial wellbeing
A new survey conducted by Perspectus Global reveals that British teens are not saving their money. While that statement alone may not be surprising to some, the survey also shows that British teens do not just fail to save money, they don't know a whole host of personal finance basics, including the lingo.
One reason Gen Alpha may not feel pressure to take charge of their financial future could be that their parents are committed to planning it for them. The survey of 1,000 British parents of teens revealed they are saving money on their children's behalf and, relatedly, do not feel confident about their children's ability to save for themselves.
‌
The data found that one in five surveyed teens did not know what the term 'inheritance' meant while others were unfamiliar with the terms ISA (Individual Savings Account) and national insurance. The survey focuses on the buzzy new consumer group termed Generation Alpha - individuals born after 2010.
‌
The research commissioned by Moneyfarm surveyed 1,000 British teens aged between 13 and 19 as well as 1,000 British parents. The March 2025 report found that 14% of British teens did not have any savings, including anything in a bank account or a pre-paid debit card.
A whopping 84% of parents said that their child would have access to money that they saved for them when they turned 18 - with the average amount being £23,000. While certainly a significant figure, parents saving money for their children is not a new phenomenon and nearly a quarter (24%) of surveyed teens said that they would use a large gift of money at 18 to fund their university education.
Of the 1,000 teens surveyed, 35% also admitted that any money they did receive, they spent immediately. While this held true for all genders, the survey did find that what teens spent their money on differed between boys and girls.
Most of the surveyed boys were likely to spend money on gaming, whereas the majority of girls said they spent their money on clothing purchases and beauty. Other big spending categories for teens include takeaways, nights out, skincare and music.
Though Gen Alpha's savings apathy may not be all that surprising when compared to their predecessors. Gen Z has faced its fair share of financial shaming, accused most recently of 'doomspending'. According to Fortune, Gen Z is dealing with the seemingly insurmountable financial odds against them by spending money on travel and short-term goods.
‌
It should also be noted that while teens may lack financial literacy, they have a desire to grow their knowledge and confidence. While over a third of surveyed teens admit they don't feel confident about managing their money in the future, 32% said they would love to learn.
And for their part, parents are making a conscious effort to educate their teens, with 82% saying they are consciously trying to teach their children about managing finances. While the world of finances can be daunting, saving money can start small. Opening up a cash ISA and savings account can open up a wealth of cost-savings schemes.
Martin Lewis recently explained that by opening any Santander savings account or cash ISA, people aged 16-25 could be eligible for a free four-year railcard worth £100. According to Lewis, by paying at least £50 by May 31, 2025 and keeping it in your account for at least a month you'll be sent a code to redeem your railcard.
That said, it is up to more than parents and teens to prioritise financial education. In March, Conservative MP Peter Bedford brought forward a motion in Parliament to introduce a bill to make provisions around financial education in primary schools and tertiary education.
Speaking in Parliament on the issue, Bedford said: "Schools should prepare young people for the adult world. Yet for all the focus on balancing an equation, there is no attention given to balancing one's bank account...we are sending our young people out into the world and putting them into the game of life without even teaching them the rules first."