As children across England collect their GCSE results this morning, some new research by J.P. Morgan suggests that this next generation are giving serious thought to their financial futures.
Teenagers today appear to be very clear when it comes to their career aspirations.
Girls today aspire to careers in healthcare, education and fashion. Boys are looking for careers in IT, engineering and healthcare.
Reaching the top of their chosen profession is a goal for both boys and girls, with 26% and 20% respectively wanting to be the boss of a big company.
It also looks like the nation is set to become more entrepreneurial, with over a quarter of teenagers wanting to start their own business.
Despite these high hopes for the future, it appears that many parents do not have the same level of confidence in the ability of their children to become financially independent.
Over a third (35%) of parents feel they will be providing financial support to their children, in one way or another, for the rest of their lives.
There are likely to be a number of reasons for this.
The current economic climate makes the outlook for jobs less positive. The notion of a ‘job for life’ is virtually gone today and those entering the world of work are more likely to experience multiple careers during their working lives.
It could also be the consequence of a rising cost of living. Being able to afford a university education and to purchase a first property is rare these days without a significant financial contribution from parents.
Other factors also contribute towards this expectation from parents.
The combination of living for much longer and delaying important life events can dramatically increase the wealth required to fund a typical lifetime.
I’ve referred before to the ‘maybe generation’ which is less decisive and tends to defer making important life decisions, such as starting a career or family, or buying a property. Greater longevity results in a higher cost for funding retirement and often greater personal and healthcare costs in later life.
Those teenagers selecting a career in healthcare could well be on the right track as the baby boomer generation starts to reach retirement age!
What is important as teenagers across the country collect their GCSE results today is that parents start the conversation with them about future financial expectations.
Children are an important part of many of the Financial Plans we work with our clients to create; from understanding the cashflow and capital expenditure requirements to support children as they become young adults, to ensuring that estates are properly structured to provide the maximum benefit to children on the death of the parent.
Photo credit: Flickr/sandwellcouncil
