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NewsYoung people are happier with their household income
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18-April-2017
Young people are happier with their household income

Young people are feeling happier about their personal finances, recent research from the ONS has shown.

'The proportion of young people who say they are mostly or completely satisfied with their household income has increased from 31% (2009-10) to 45% (2014-15)...The proportion of young people reporting they are finding it difficult or very difficult to manage financially has decreased from 15% (2009-10) to 7% (2014-15) while the proportion reporting that they are financially “comfortable” increased from 22% to 31% over the same period.'

There is a split however within the age group regarding the increased feeling of satisfaction with personal finances:

'In the period 2014 to 2015, those aged 16 to 18 were significantly more likely to say they were mostly or completely satisfied with their household income (52%) than those aged 22 to 24 (37%). This probably reflects the fact that 16- to 18-year-olds are usually still living in the parental home, so continue to benefit from the household income of their parents.

Those aged 22 to 24 are more likely to have their own financial responsibilities, such as rent and bills and a level of household income reflecting their individual earnings. However, a higher proportion of people aged 22 to 24 in 2014 to 2015 ... (and)..this coincided with an increase in the proportion of young people in this age group still living with their parents' - 39% in 2009 to 46% in 2016

All age groups have shown significant decreases in the proportions reporting they are finding it difficult to manage financially, Those reporting feeling financially comfortable in 2014-15 were 80% of those aged 16 to 18, 73% of those aged 19 to 21, and 70% of those aged 22 to 24.

It's not all good news however:

'Despite these positive developments in how young people are feeling about their finances, the proportion of young people living in households at risk of poverty has increased...Estimates show that in 2015, around 1 in 4 young people in the UK (25%) lived in households with less than 60% of the UK’s median income. This proportion has increased since 2008 when around 1 in 5 (19%) of 16- to 24-year-olds lived in households with less than 60% of median income.'

The disparity from the perceptions of young people regarding finances and the increase in those at risk of poverty shows that there is an increasing difference in the experiences of those in social housing and those living elsewhere. In May 2016, 1 in 5 young people in social rental housing rated their current financial situation as difficult or very difficult compared with an average of 1 in 14 young people in other accommodation types in 2013 to 2014.


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