Personal Finances of Young People in the UK
In this blog we take a look at a recent article released by the Office of National Statistics looking at the personal finances of young people. It was reported that approximately 8% of young people aged between 16 and 24 years of age in the UK were finding it difficult to get by financially from 2013 to 2014, which is down from the reported 15% from 2009 to 2010.
22% of young people who were students between 2013 and 2014 were reported to be the least likely to be dissatisfied with their annual household income, but were the most likely to consider that they will be worse off financially in the future.
The largest reported decrease in the proportion surveyed were unemployed young people who stated that they were finding it difficult or very difficult to get by financially. The results showed 39% from 2009 to 2010 dropping to 26% between 2013 and 2014.
The last of the main points raised in the article was that young people in the South West of England were more likely to report a better current financial situation but they are also more likely to be negative about their future financial situation.
The article uses the latest data from the ONS’s measures of young people’s well-being to explore how young people’s well-being and financial situation have changed. It focuses on their own subjective views about their financial situation and looks at how they relate to additional factors such as their employment situation and accommodation.
Since 2009 there is evidence of an improving economic situation for young people in the UK
The overall consensus is that since 2009 there is evidence of an improving economic situation for young people. This is further supported by the latest report on young people’s well-being which can be found†on the following link.
The report details that between 2012 and 2015 the unemployment rate of 18 to 24 year olds fell from nearly 20% to 14% and young people aged between 16 to 24 years of age, not in education, employment or training fell from 16% to 13%. It also details that young people’s average income has increased whilst their debt had decreased.
Data taken from the EU Statistics on Income and Living Conditions Survey†shows that between 2009 and 2014 the average equivalised net income for 16 to 24 year olds increased from £13,500 to £15,500. This is mirrored by the Wealth in Great Britain 2012 to 2014 Report which shows that the average debt of 16 to 24 year olds decreased from £3,000 between 2010 and 2012 to £2,600 from 2012 to 2014.
Many positives can be taken from the report and overall we believe it gives hope to the young people of Great Britain.
Is it that even in the younger age groups, we all understand our financial responsibilities better and take them more seriously? The only way we will find out in truth is by looking at the next set of data in the next few years to see if the trend continues.
If you are a young person struggling with debt and need advice then there are a number of organisations that can provide help and support, such as the Money Advice Service.
We hear from a lot of young people who have a low or bad credit rating and have consequently been turned down by the mainstream lenders. We take in to consideration the circumstances and the applicant’s ability to both afford and repay the loan. If the applicant doesn’t meet the criteria themselves, they can find a suitable guarantor to support their application and could be eligible for a guarantor loan. This form of borrowing can be paid back over a longer term period between 1 and 5 years. It can also help improve the applicant’s credit rating provided repayments are made at the agreed times.
If you are aged 18 or above and you want to apply for a loan with George Banco then please click on the Get Started link and you could have a decision the very same day.