Title Subtitle Subtitle

Financial Literacy – Dream on
- based on a market research survey among 15–17 year olds and parents with children
aged 15–17 years
Please note, that results from this survey may only be
published by stating:
”Survey conducted for Fokus Bank by YouGov”
December 2011
1
Content
1.
Background and purpose
2.
Methodology
3.
Topics covered
4.
Summary
5.
Results
1.
2.
3.
4.
6.
2
Income and consumption
•
15-17 year olds own assessment of their income and consumption
•
Parents’ attitude towards their children's income and consumption
Dreams
•
15-17 year olds biggest wishes and dreams – long term and short term
Financial literacy
•
15-17 year olds assessment of their own financial literacy
•
Parents’ assessment of their children's financial literacy
•
Parents’ assessment of their own financial literacy and their influence on their children's
financial literacy
Testing knowledge about financial expressions
• APR, children's savings accounts, creditworthiness etc.
Appendix
•
Sample split on demographics
1
3
Background and purpose
Background and purpose
Teenagers aged 15-17 years are no longer children, however not yet adults. They do not have the
responsibilities following the adulthood, but many are soon to be responsible for their own personal
finances. To prepare these teenagers for managing their personal finances, Danske Bank Group
has developed a game called “Dream On”. Danske Bank Group has defined three overall objectives
for the game:
•
•
•
Teach the 15-17 year olds about healthy economic behaviour
Give the 15-17 year olds a greater understanding of economical instruments
Provide the 15-17 year olds with consumer insights
In connection with the launch of the game, YouGov has, on behalf of Fokus Bank, conducted a
market survey which provides knowledge and understanding of the 15-17 year olds knowledge
about money and personal finance.
The primary objectives of the survey have been to:
•
•
•
Identify how much money the 15-17 year olds earn and spend
Identify the 15-17 year olds long term – and short term – dreams, and their willingness to work to
achieve them
Identify the 15-17 year olds level of financial literacy
To ensure the broadest possible angle, the parents to 15-17 year olds are included in the survey.
4
2
5
Methodology
Methodology
Interview period and data collection method:
• The data was collected online using YouGov’s Norwegian panel from 17 October to
11 November 2011
Target group:
• Group 1: Teenagers aged 15-17 years
• Group 2: Parents with teenagers aged 15-17 years
Sample size:
• Group 1: 300 interviews
• Group 2: 300 interviews
Data weighting:
The data in group 2 is weighted on the gross base, in terms of gender, age and region
(according to the official national statistics)
6
3
7
Topics covered
Topics covered
Target group
Group 1
Teenagers aged 15-17 years
Topic
Income
How much money do the 15 to 17 year olds have, and where do they get their money
from?
Consumption
What do the 15-17 year olds spend money on? How often do they spend money?
What would they spend an unexpected amount of money on?
Dreams
What are their biggest wishes? What are their short term - and long term - dreams?
Do their dreams influence their choice of education?
Financial literacy
How do the teenagers assess their own financial literacy? Do they lack tools and
knowledge to be in control of their personal finances? Who are their role models? Do
they feel ready to be in charge of their personal finances? Do they have an
understanding of financial terminology ?
Group 2
Parents with teenagers aged 15-17 years
Financial literacy
Do they feel that the 15-17 year olds have too much money, and that they use too
much money?
How do the parents assess their own financial literacy? And how do they assess their
teenagers? Do the parents believe that their children are equipped to be responsible
for their own personal finances? Do they believe that financial literacy is inherited?
Do the parents feel that their own parents’ ability to handle personal finances have
had any influence on their own ability? Do the parents believe that their own financial
literacy is influencing their children’s? Who do the parents feel are main responsible
and credible in teaching financial literacy to their children?
8
4
9
Summary
Summary
Income and consumption:
 64% of the 15-17 year olds get pocket money from their parents. 50% get pocket money they have to work for. 49%
claim regularly to get money besides pocket money from their parents when they need it. This is especially the case
for those claiming that they do not have an overview of their monthly income and expenses. Age has a large impact
on the source of income. 73% of the 15-17 year olds get pocket money and 42% of the 17 year olds claim that they
get money from a free time job.
 Money from a free-time job is unquestionably the source of income that provides the largest amount of money. 23%
of those working in a free-time job earn more than 3,000 NOK. 64% of the 15-17 year olds receive less than 1,000
NOK every month in pocket money. This is especially the case for the 15 year olds. Naturally, the older you are, the
more money you earn through a free-time job.
 The 15-17 year olds claim to spend on average 1,725 NOK every month. The money is primarily spent on food
(22%), clothes (18%), and transportation (10%). 8% of the monthly spending are put into savings. The older they are,
the more they spend every month. Girls spend far more money on clothes, while boys spend more money on food,
transport and gaming.
 Only 29% of the 15-17 year olds claim that they have a complete overview of their monthly income and expenses.
67% of the 15-17 year olds claim that they, “not always” or “never”, have an overview of their monthly income and
expenses. There is a tendency towards that 15-17 year olds living in a household with an income of 800,000 NOK,
have less overview of their monthly income and expenses.
 The 15-17 year olds primarily get money from parents and other family members when they have unforeseen
expenses (42%). 39% spend their savings while 30% borrow from parents/family. The level of financial literacy has
an impact on the actions taken towards unforeseen expenses. Those who have a complete overview of their monthly
income and expenses spend their savings, while those who never have an overview of their income and expenses
get money from friends and family to a higher extent.
10
Summary
Income and consumption (continued):
 The 15-17 year olds believe that they lend money to friends far more frequent than they borrow money from
their friends. 34% of the 15-17 year olds claim never to borrow money from friends, while 16% never lend
friends money.
 An unexpected present of 1,000 NOK would primarily be spent on everyday needs (46%). However, 32%
claim that they would put it into savings. Only 8% would spend it to make a dream come true. If they were to
receive a present of 5,000 NOK, 65% claim that they would put it into savings. 15% would spend it to make a
dream come through.
 A majority of the 15-17 year olds (55%) save up when they want some expensive things/items/experiences
that they cannot afford to buy themselves. 15% get money from parents/family, 12% work more hours in their
free-time job while 10% would borrow money from their parents/family.
 Naturally, the 15-17 year olds more seldom spend large amounts of money. The frequency in the purchase of
things, trips, events etc. are naturally correlated with the costs.
 47% of the 15-17 year olds have spent more than 5,000 NOK on the most expensive thing they have ever
bought. In this case they primarily bought a computer or a trip. The 15-17 year olds who have spent up to
3,000 NOK on their most expensive item have primarily bought clothes or a trip. 15-17 year olds who have
bought their most expensive item using 3,000-4,999 NOK have primarily bought a computer, a mobile phone
or a trip. Boys have, to a higher degree used more than 10,000 NOK on an expensive thing or trip.
11
Summary
Dreams:
 Dreams are influenced by gender. Girls’ short term dreams are primarily weekend trips to London, stylish item of
clothing, smartphones and Flat-screen TV’s while boys dream of weekend trips to London, smartphones, flatscreen TV’s and gaming consoles. Both boys and girls have a long term dream that involves a drivers licence, but
the boys are more interested in actually getting the car. Girls on the other hand seem to dream more about
travelling – to Sunny Beach or to Asia on a backpack trip.
 71% of the 15-17 year olds think about which education to choose to be able to afford their dreams later. Very few
are keen on starting working soon instead of getting an education to be able to afford their dreams earlier. The
parents’ education seem to have an impact on their 15-17 year olds children’s thoughts on education and the
fulfilment of dreams. The 15-17 year olds who have parents with a high level of education think more about the
education they would choose, and they are further less willing to compromise on education to be able to afford
their dreams earlier. Boys are on average to a higher degree prioritising to start working soon rather than start a
course of education.
Financial Literacy:
 61% of the 15-17 year olds would like to know more about money and personal finances, and 52% claim to be
interested in money and personal finances. This can be due to the fact that many feel, that they would be able to
afford to live out their dreams, if they knew more about money and finances (55%). This is especially the fact for
those who do not have an overview of their monthly income and expenses. However, these are also the ones least
interested in money and personal finances, and those who to the highest degree claim not to know where to get
knowledge about money and personal finances. The household income and the parents’ education influence the
15-17 year olds interest in money and personal finances, and their understanding of where to get knowledge
about this subjects.
12
Summary
Financial Literacy (continued):
 It is important to notice, that the 15-17 year olds assess their parents’ management of their personal finances
better than the parents do themselves. The 15-17 year olds are further assessing their own economy better than
that of their friends. 36% of the parents claim that they cannot assess their children’s friends’ personal finances.
The youth/and parents living in families with a household income of 800,000+ assess their parents/children ability
far better than those living in families with a lower household income.
 88% of the 15-17 year olds claim that it is their parents who advise them about money and personal finances. This
might also be a factor in why they give their parents such a good assessment in managing money and personal
finances. 22% get advice from their friends. 97% of the teenagers living in a family with a household income of
800,000+ get advice from their parents. They also get advice from several different sources than others. This is
also the case for teenagers who have parents with high education.
 As it is the parents who give advice about money it is only natural that the parents have a high influence on the
youths own handling of money and personal finances. Parents have far more influence on the teenagers than their
friends (respectively 87% and 63%). It is interesting to notice, that the parents believe that their own parents’ have
influenced them to the same degree as they themselves, will have influence on their children.
 17% of the parents claim that they have an overdraft on their account at least every six month. 65% of the parents
claim never to have an overdraft on their account. It is especially parents living in Oslo/Akershus (79%), parents
with a medium (69%) or high (71%) education who claim never to have an overdrawn account. A majority of the
15-17 year olds (56%) claim never to spend more money per month than they actually have.
 It is very important to notice that only 34% of the 15-17 year olds definitely feel ready to manage their own
finances. 17 year olds do however feel far more ready to manage own finances (48%) than the 15 year olds
(17%). Further, 15-17 year olds living in families with a household income of 800,000 NOK or more do, to a higher
degree, feel ready than those living in families with a lower household income.
13
Summary
Financial Literacy (continued):
 The parents agree with the 15-17 year olds – they do not feel that the 15-17 year olds are quite ready to handle
their own finances. 72% feel that their child is not ready, and only 27% feel that their child is prepared. It is
especially women (79%) who feel that their child is not ready to handle own finances.
 75% of the parents believe that young people today, generally spend too much money. Further, only 37%
believe that young are good at managing their own personal finances. 63% believe that young people today
have too much money at their disposal.
 Even though only 34% of the 15-17 year olds definitely feel ready to manage their own finances, 74% do not
feel that they need help and tools to manage their own finances.
 56% claim to be interested in a “Dream-on” game on the internet. Please notice that the “Don’t know” share is
quite high (21%). This implies that the young have to try the game before they can decide whether it is
interesting.
Banks’ trustworthiness in teaching children about financial literacy
 8 out of 10 parents to 15-17 year olds consider it a good thing that banks contribute knowledge and material
that can teach young people about money and personal finances. This is especially the case for parents aged <
50 years, and parents with a medium (88%) or high (82%) education.
 DnB Nor (6%) is closely followed by Sparebank1 (5%) and Nordea (5%) the bank most parents associate with
financial literacy training programmes. However, please notice, that 83% of the parents are not aware of banks
developing these types of programmes.
 All the mentioned financial literacy training programmes have low levels of aided awareness among parents to
15-17 year olds. Pengeby.no is the program with the highest level of awareness.
14
Summary
General knowledge about financial expressions
 Only 26% of the 15-17 year olds know what APR stands for. The parents are, to a much higher degree than the
15-17 year olds aware of the term APR. Please notice, that 60% of the 15-17 year olds claim that they do not
know what APR stands for, and additionally 14% answers the question incorrectly.
 19% of the 15-17 do not know what the effect will be if the interest rate on a loan increases. 14% claim not to
know, and 5% believe that they then get more money available.
 23% of the 15-17 year olds claim that they do not know what is required to be declared creditworthy by a bank.
47% of the 15-17 year olds, and 69% of the parents are aware of the requirements. Fathers (76%), do to a higher
degree than mothers (63%), know what it takes to be declared creditworthy.
 The parents are not agreeing on how many assets young people aged below 18 years may have before the
money will be administered with the consent of the Public Trustees. 31% believe that the assets may not exceed
NOK 75,000, and 12% believe that the asset can not exceed NOK 100,000. 45% claim that they do not know.
 The majority of the parents (67%) believe that the parent’s assets and income have an influence on the student
loans and scholarships for young people. 64% believe that the young people’s assets and income is an
influencing parameter. Please notice, that 24% of the parents claim that they do not know whether the young
people’s assets and income have any influence.
15
5
16
Results
5.1
17
Income and consumption
•
15-17 year olds own assessment of their income and consumption
•
Parents’ attitude towards their children's income and consumption
Source of income
15-17 year olds
A total of 64% of the 15-17 year olds get pocket money from their parents, and 50% get pocket money they
have to work for. 49% claim regularly to get money besides pocket money from their parents when they need
it. This is especially the case for those who claim that they do not have an overview of their monthly income
and expenses. Age has a large impact on the source of income. 73% of the 15 year olds get pocket money
and 42% of the 17 year olds claim that they get money from a free time job.
How do you get money to spend?
Base (n=300)
I get pocket money that I have to work for
50%
Pocket money (NET) 64%
I get pocket money that I do not have to work for
24%
I regularly get money besides pocket money, e.g.
from my parents when I need it
49%
Free-time job
31%
Student grant
32%
Spend my savings
29%
Other
7%
Do not get any money
2%
Don't know
1%
0%
18
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Source of income and money earned
15-17 year olds
Money from a free-time job is unquestionably the source of income that provides the largest amount of
money. 23% of those working in a free-time job earn more than 3,000 NOK. 64% of the 15-17 year olds
receive less than 1,000 NOK every month in pocket money. This is especially the case for the 15 year olds.
Naturally, the older you are, the more money you get from a free-time job.
How much money do you get...
Pocket money (n=192)
(None=36%)
64%
Money from free-time job (n=94)
(None=69%)
31%
23%
Extra money (n=202)
(None=30%)
10%
Less than NOK 1,000
19
18%
23%
71%
0%
20%
30%
NOK 1,000 - 1,999
4% 3% 4%
25%
9%
40%
50%
NOK 2,000 - 2,999
60%
NOK 3,000 or more
70%
4%
12%
1% 6%
80%
Don't know
90%
100%
Money spent
15-17 year olds
The 15-17 year olds claim to spend on average 1,725 NOK every month. The money is primarily spent
on food (22%), clothes (18%), and transportation (10%). 8% of the monthly spending are put into
savings. The older they are, the more they spend every month. Girls spend far more money on
clothes, while boys spend more money on food, transport and gaming.
Money is spent on:
Money spent on a monthly basis:
Money spent on average: 1,725 NOK
kr 4 000
kr 3 589
kr 3 500
kr 3 000
kr 2 500
kr 2 100
kr 2 000
kr 1 500
kr 1 000
kr 1 150
kr 630
kr 500
kr 0
Bottom
quartile
(1st)
Median
Top quartile Top 90%
(3rd)
Maximum amount spent: 15,353 NOK
Minimum amount spent: 10 NOK
20
Money spent
Split on gender
Spending girls:
21
Spending boys:
Overview of income and expenses
15-17 year olds
Only 29% of the 15-17 year olds claim that they have a complete overview of their monthly income and
expenses. 67% of the 15-17 year olds claim that they, “not always” or “never”, have an overview of their
monthly income and expenses. There is a tendency towards that 15-17 year olds living in a household
with an income of 800,000 NOK, have less overview of their monthly income and expenses.
Do you have an overview of your monthly income and expenses (how much money you receive and
how much money you spend every month)?
Base (n=300)
Yes, completely
29%
No, not always
55%
No (NET) 67%
No, never
13%
Don't know
4%
0%
22
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Actions taken towards unforeseen expenses
15-17 year olds
The 15-17 year olds primarily get money from parents and other family members when they have
unforeseen expenses (42%). 39% spend their savings while 30% borrow from parents/family. Girls more
often get money from their parents/family. The level of financial literacy has an impact on the actions taken
towards unforeseen expenses. 48% of the 15-17 year olds who have a complete overview of their monthly
income and expenses will spend their savings, while 58% of those never having an overview of their
income and expenses get money from friends and family.
What do you do if you have unforeseen expenses?
Base (n=300)
Get money from my parents/family
42%
Spend my savings
39%
Borrow money from my parents/family
30%
Work more hours in my free-time job
14%
Borrow money from my friends
5%
Other
5%
Ignore it
1%
Don't know
10%
0%
23
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Borrowing and lending out money
15-17 year olds
It seems as the 15-17 year olds believe that they lend money to friends far more frequent than they
borrow money from their friends. 34% of the 15-17 year olds claim never to borrow money from friends,
however 16% never lend friends money.
How often do you do the following?
Base (n=300)
Borrow money from your
friends
15%
Lend your friends money
24%
0%
Every month
24
10%
10%
7%
29%
13%
20%
About every other month
30%
34%
15%
40%
About every third month
5%
24%
50%
60%
16%
70%
More rarely than every third month
80%
Never
7%
90%
Don't know
100%
The use of unexpected money
15-17 year olds
An unexpected present of 1,000 NOK would primarily be spent on everyday needs. However, 32% claim
that they would put it into savings. Only 8% would spend it to make a dream come true. If they were to
receive a present of 5,000 NOK, 15% would spend it to make a dream come through, and 65% claim that
they would put it into savings.
If you unexpectedly received a present of NOK 1,000 or NOK 5,000 how would you mainly spend it?
Base (n=300)
NOK 1.000
46%
NOK 5.000
8%
0%
8%
65%
10%
Spend it on everyday needs
25
32%
20%
Savings
30%
40%
15%
50%
Spend it to make a dream come true
60%
Repay a loan
70%
Other
80%
Don't know
1%
7%
2% 5%
90%
7%
5%
100%
Expensive wishes
15-17 year olds
A majority of the 15-17 year olds (55%) save up when they want some expensive
things/items/experiences that they cannot afford to buy themselves. 15% get money from parents/family,
12% work more hours in their free-time job while 10% borrow money from their parents/family. It is
especially those claiming to have an overview of monthly income and expenses who save up (64%).
What do you typically do if you want something expensive that you cannot afford to buy yourself?
Base (n=300)
Save up
55%
Get money from my parents/family
15%
Work more hours in my free-time job
12%
Borrow money from my parents/family
10%
Borrow money by other means
Borrow money from my friends
1%
0%
Other
4%
Don't know
4%
0%
26
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Money spent on larger things, trips, events etc.
15-17 year olds
Naturally, the 15-17 year olds more seldom spend large amounts of money. The frequency in the
purchasing of things, trips, events etc. is naturally correlated with the costs.
How often do you spend your own money on bigger things, trips, events, etc. that cost...?
Base (n=300)
Less than NOK 500
35%
NOK 500 - 999
NOK 1,000 - 1,999
7%
14%
2% 5%
NOK 2,000 - 2,999 1%2%
NOK 10,000 or more 1% 1%
0%
Every month
27
23%
14%
38%
14%
47%
14%
15%
58%
23%
18%
65%
15%
15%
67%
20%
About every other month
30%
11%
15%
30%
32%
10%
10%
19%
37%
1%
1% 2%
9%
34%
7%
NOK 7,500 - 9,999 1%1%1%
16%
23%
15%
NOK 3,000 - 4,999 1%1%5%
NOK 5,000 - 7,499
19%
40%
About 1-2 times every six months
50%
15%
60%
70%
More rarely than every six months
80%
Never
Don't know
90%
100%
Cost and type of most expensive thing, event or trip ever bought
15-17 year olds
47% of the 15-17 year olds have spent more than 5,000 NOK on the most expensive thing they ever bought.
In this case they primarily bought a computer or a trip. The 15-17 year olds who have spent up to 3,000 NOK
on their most expensive item have primarily bought clothes or a trip. 15-17 year olds who have bought their
most expensive item for 3,000-4,999 NOK have primarily bought a computer, a mobile phone or a trip. Boys
have, to a higher degree used more than 10,000 NOK on an expensive thing or trip.
What was the cost of the most expensive thing, trip or event you have ever bought?
– and what was it that you bought?
The open ended answers are arranged in
word clouds. The size of a word
indicates the number of respondents
who have indicated this item
3.000 - 4.999 NOK (14%)
28
Up to 2.999 NOK (22%)
5.000 NOK or more (47%)
5.2
Dreams
•
29
15-17 year olds biggest wishes and dreams – long term and short term
Dreams – long term and short term
15-17 year olds
Dreams are influenced by gender. Girls’ short term dreams are primarily weekend trips to London, stylish item of
clothing, smartphones and Flat-screen TV’s while boys dream of weekend trips to London, smartphones, flat-screen
TV’s and gaming consoles. Age also has an impact on the short term dreams. The 15 year olds’ main short term
dream is a flat-screen TV. (21%), 16 year olds dream of a weekend trip to London short term (30%), and the 17
year olds are to a higher degree dreaming of a festival ticket (11%).
Short term dreams
1.
2.
3.
4.
Weekend trip to London
Smartphone
Stylish clothing
Flat – screen TV
Girls
Boys
1.
2.
3.
4.
1.
2.
3.
4.
Weekend trip to London (28%)
Stylish item of clothing (20%)
Smartphone (19%)
Flat-screen TV (8%)
Weekend trip to London (17%)
Smartphone (16%)
Flat-screen TV (16%)
Gaming console (15%)
Long term dreams are also influenced by gender. Both boys and girls have a long term dream that involves a
drivers licence, but the boys are more interested in actually getting the car. Girls on the other hand seem to dream
more about travelling – to Sunny Beach or to Asia on a backpack trip.
Long term dreams
1. Driver’s licence
2. Car
3. Summer holiday in
Sunny Beach
4. Backpack trip to Asia
30
Girls
Boys
1. Driver’s licence (31%)
3. Car (16%)
4. Summer holiday in Sunny
Beach (15%)
1. Car (41%)
2. Driver’s licence (33%)
3. Laptop computer (5%)
Dreams – short term
15-17 year olds
Which of the following do you dream of most, in the short term?
Base (n=300)
Weekend trip to London
24%
Smartphone (e.g. iPhone)
18%
Stylish item of clothing
16%
Flat-screen TV
11%
Tablet (e.g. iPad)
9%
Gaming console (e.g. PlayStation 3)
7%
Festival ticket
6%
Fitness subscription
5%
Inter-rail ticket
3%
Designer bag
1%
0%
31
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dreams – long term
15-17 year olds
Which of the following do you dream of most, in the long term?
Base (n=300)
Driver's licence
32%
Car
27%
Summer holiday in Sunny Beach
10%
Backpack trip to Asia
7%
Folk high school course (Danish: Højskole)
5%
Voluntary work in Africa
5%
Laptop computer
5%
Co-operative apartment
(Norwegian: Andelsleilighet, flat under multi-ownership scheme)
4%
Moped/Scooter
3%
Ski holiday in France
3%
0%
32
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
5.3
33
Financial Literacy
•
15-17 year olds assessment of their own financial literacy
•
Parents’ assessment of their children's financial literacy
•
Parents’ assessment of their own financial literacy and their influence on
their children's financial literacy
Attitude towards education and dreams
15-17 year olds
71% of the 15-17 year olds think about which education to choose to be able to afford their dreams later.
Very few are keen on starting working soon instead of getting an education to be able to afford their dreams
earlier. The parents’ education seem to have an impact on their 15-17 year old children’s thoughts on
education and the fulfilment of dreams. The 15-17 year olds who have parents with a high level of education
think more about the education they would choose, and they are further less willing to compromise on
education to be able to afford their dreams earlier. Boys are on average, to a higher degree prioritising
starting working soon rather than starting a course of education.
15-17 year olds attitude towards education and dreams
Base (n=300)
Disagree (NET)
I think about which course of education
I should choose,
to be able to afford my dreams later
22%
I want to start working soon,
to be able to afford my dreams
48%
My priority is to start working soon,
rather than a course of education,
so I can afford my dreams sooner
81%
120%
34
100%
Agree (NET)Don't know
8% 15%
13%
46%
80%
60%
35%
35%
40%
37%
20%
31%
34%
10%
9%2%
0%
20%
40%
60%
71%
6%
40%
11%
10%
9%
80%
100%
120%
Attitude towards money and personal finances
15-17 year olds
61% of the 15-17 year olds would like to know more about money and personal finances, and 52% claim to be
interested in money and personal finances. This can be due to the fact that many feel, that they would be able to
afford to live out their dreams, if they knew more about money and finances (55%). This is especially the fact for
those who do not have an overview of their monthly income and expenses. However, these are also the ones
least interested in money and personal finances, and further those who to the highest degree claim not to know
where to get knowledge about money and personal finances. The household income and the parents’ education
influence the 15-17 year olds interest in money and personal finances, and their understanding of where to get
knowledge about this subjects.
15-17 year olds attitude towards money and personal finances
Base (n=300)
Disagree (NET)
I think I would be better able to afford
to live out my dreams if I knew
more about money and personal finances
32%
7%
I am very interested in money
and personal finances
38%
I would like to know more
about money and personal finances
25%
I do not know where to get knowledge
about money and personal finances
61%
120% 100%
35
Agree (NET)Don't know
8%
25%
45%
30%
39%
5% 20%
18%
80%
60%
20%
13%
47%
43%
40%
10%
13%
21% 5%
0%
20%
40%
60%
55%
14%
52%
10%
61%
14%
27%
12%
80%
100% 120%
Assessment of handling money and finances
15-17 year olds – and parents to 15-17 year olds
It is important to notice, that the 15-17 year olds assess their parents’ management of their personal finances better
than the parents do themselves. The 15-17 year olds are further assessing their own economy better than that of
their friends. 36% of the parents claim that they cannot assess their children’s friends’ personal finances. The
youth/and parents living in families with a household income of 800,000+ assess their parents/children ability far
better than those living in families with a lower household income.
How well or badly do you assess that you, your child and your child's friends manage money and
personal finances?
How well or badly do you assess that you, your friends and your parents manage money and
personal finances?
Base (n=300)
7,63
6,25
100%
7%
90%
20%
5,52
2%
5%
6,48
3%
11%
80%
18%
8%
5,20
1%
5%
5%
11%
8,01
27%
18%
16%
13%
20%
70%
19%
19%
60%
25%
15%
24%
25%
50%
9%
18%
40%
30%
18%
3%
2%
2%
10%
18%
13%
15%
15%
20%
10%
1% 0%
7%
2%
3%
36%
10%
8%
9%
2% 2%
1%
5%
2%
1% 3%
3%
1%
3%
4%
13%
You yourself
Your child
You yourself
Your friends
8%
Your child's friends
Parents
Don't know
36
15-17 year olds
Very badly - 1
2
3
4
5
6
7
8
9
Very well - 10
13%
6%
5%
1%1%1%
2%
6%
Your parents
Advice about money and personal finances
15-17 year olds
88% of the 15-17 year olds claim that it is their parents who advise them about money and personal finances. This
might also be a factor in why they give their parents such a good assessment in managing money and personal
finances. 22% get advice from their friends. Girls, and the 17 year olds get advice from more different sources than
others. 20% of the girls, and 24% of the 17 year olds get advice from their bank. 97% of the teenagers living in a
family with a household income of 800,000+ get advice from their parents. They also get advice from several
different sources than others. This is also the case for teenagers who have parents with higher education.
Who advises you about money and personal finances?
Base (n=300)
88%
Parents
Friends
22%
Other family
17%
The bank
16%
Others
17%
No-one
5%
Don't know
2%
0%
37
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Influents regarding the handling of money and personal finances
15-17 year olds
88% of the 15-17 year olds claim that it is their parents who advise them about money and personal finances, and it
is therefore only natural that the parents have a high influence on the youths own handling of money and personal
finances. Parents have far more influence on the teenagers than their friends (respectively 87% and 63%).
Do you think that your parents' and your friends' handling of money and personal finances has an
influence on your own handling of money and personal finances?
Base (n=300)
Yes (NET) 87%
Your parents have an influence
52%
9%
35%
4%
Yes (NET) 63%
Your friends have an influence
15%
0%
10%
48%
20%
30%
Yes, definitely
38
29%
40%
Yes, partly
50%
No
Don't know
60%
70%
80%
9%
90%
100%
Influents regarding the handling of money and personal finances
Parents to 15-17 year olds
It is interesting to notice, that the parents believe that their own parents’ have influenced them to the
same degree as they themselves, will have influence on their children.
Do you believe that your own parent's handling of money and personal finances has had and has an influence on your own
handling of money and personal finances?
Do you believe that your own handling of money and personal finances will have an influence on your child's handling of
money and personal finances?
Base (n=300)
Yes (NET) 90%
Own parent's influence
36%
54%
9% 1%
Yes (NET) 92%
Own influence
35%
0%
10%
20%
58%
30%
40%
Yes, definitely
39
50%
Yes, partly
60%
No
Don't know
5% 2%
70%
80%
90%
100%
Overdrawing an account
Parents to 15-17 year olds
17% of the parents claim that they have an overdraft on their account at least every six month. 65%
of the parents claim never to have an overdraft on their account. It is especially parents living in
Oslo/Akershus (79%), parents with a medium (69%) or high (71%) education who claim never to have
an overdrawn account.
How often is your account overdrawn?
Base (n=300)
Every month
4%
About every other month
3%
About 1-2 times every six months
10%
More rarely than every six months
16%
Never
65%
Don't know
1%
0%
40
10%
20%
30%
40%
50%
60%
70%
Overspending
15-17 year olds
A majority of the 15-17 year olds (56%) claim never to spend more money per month than they actually
have. The household income or the parents highest education do not seem to influence the youth’s
overspending.
How often do you spend more money per month than you actually have?
Base (n=300)
Every month
10%
About every other month
4%
Spend more money than they have (NET) 35%
About every third month
5%
More rarely than every third month
16%
Never
56%
Don't know
9%
0%
41
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Readiness to manage own finances (1/3)
15-17 year olds
It is very important to notice that only 34% of the 15-17 year olds definitely feel ready to manage their own
finances. 46% of the 15-17 year olds are not quite ready while 12% feel that they are not at all ready. 17
year olds do however feel far more ready to manage own finances (48%) than the 15 year olds (17%).
Further, 15-17 year olds living in families with a household income of 800,000 NOK or more do to a higher
degree feel ready than those living in families with a lower household income.
Do you feel that you are ready to manage your own finances, e.g. in terms of travelling or studying?
Base (n=300)
Yes, definitely
34%
No, not quite
46%
No (NET) 58%
No, not at all
12%
Don't know
8%
0%
42
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Readiness to manage own finances (2/3)
Parents to 15-17 year olds
The parents agree with the 15-17 year olds – they do not feel that the 15-17 year olds are quite ready
to handle their own finances. 27% indicate that their child is prepared but 72% feel that their child is
not ready. It is especially women (79%) who feel that their child is not ready to handle own finances.
Do you believe that your child is generally prepared to be able to handle his/her own money and
personal finances?
Base (n=300)
Yes, definitely
27%
No, not quite
59%
No (NET) 72%
No, not at all
Don't know
14%
0%
0%
43
10%
20%
30%
40%
50%
60%
70%
80%
Readiness to manage own finances (3/3)
Parents to 15-17 year olds
75% of the parents believe that young people today, generally spend too much money. Further, only
37% believe that young are good at managing their own personal finances. 63% believe that young
people today have too much money at their disposal. The older the parents the more they agree with
the latter. However, the older parents also to a larger extent believe that the young are good at
managing their own personal finances.
Parent's attitude towards young people and finances
Base (n=300)
Agree (NET)Don't know
Disagree (NET)
63%
Young people today aged 15-17
have too much money at their disposal
27%
Young people today aged 15-17
generally spend too much money
19%
Young people aged 15-17
are good at managing their own personal finances
56%
100%
80%
Disagree (2)
44
60%
2%
25%
51%
2% 18%
10%
55%
47%
40%
Strongly disagree (1)
20%
Agree (3)
34%
0%
10%
12%
20%
37%
3%
20%
Strongly agree (4)
75%
40%
60%
80%
5%
7%
100%
Need of help and tools to manage own finances
15-17 year olds
Even though only 34% of the 15-17 year olds definitely feel ready to manage their own finances, 74%
do not feel that they need help and tools to manage their own finances. Only 32% of those who never
have an overview of their monthly income and expenditure feel that they need help.
Do you feel that you need help and tools to help you manage your own finances?
Base (n=300)
Yes, definitely
12%
No, not quite
54%
No (NET) 74%
No, not at all
20%
Don't know
14%
0%
45
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Interest in “Dream-on” game
15-17 year olds
56% claim to be interested in a “Dream-on” game on the internet. Please notice, that the “Don’t know”
share is quite high (21%). This implies that the game would have to be tested before the young can
decide whether it is interesting.
Would you be interested in a game on the Internet where you, e.g. with your friends, can learn about
money and personal finances (such as budgets, shopping, earning money, wages, expenses and
income, currency, loans, shares and savings)?
Base (n=300)
17%
Yes, definitely
Yes (NET) 56%
Yes, partly
40%
No
22%
Don't know
21%
0%
46
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Parents attitude towards banks contributing in teaching their children FL
Parents to 15-17 year olds
8 out of 10 parents to 15-17 year olds consider it a good thing that banks contribute knowledge and
material that can teach young people about money and personal finances. This is especially the case
for parents aged < 50 years, and parents with a medium (88%) or high education (82%).
Do you consider it a good thing that banks contribute knowledge and material that can teach young
people about money and personal finances?
Base (n=300)
Yes, definitely
42%
Yes (NET) 80%
Yes, partly
38%
No
17%
Don't know
3%
0%
47
10%
20%
30%
40%
50%
60%
70%
80%
Parents awareness of banks contributing in teaching their children FL
Parents to 15-17 year olds
DnB Nor (6%) is closely followed by Sparebank1 (5%) and Nordea (5%) the bank most parents
associate with financial literacy training programmes. However, please notice, that 83% of the parents
are not aware of banks developing these types of programmes.
Which bank(s) do you believe has (have) developed special financial literacy training programmes?
Base (n=300)
DnB Nor
6%
Sparebank1
5%
Nordea
5%
Fokus Bank
3%
Skandiabanken
2%
Don't know
83%
0%
48
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Parents awareness of FL training programmes
Parents to 15-17 year olds
All the mentioned financial literacy training programmes have low levels of aided awareness among
parents to 15-17 year olds. Pengeby.no is the program with the highest level of awareness.
What do you know about the following financial literacy training programmes?
Base (n=300)
8%
Pengeby.no
75%
5%
9%
1%
2%
8%
Cashkontroll.no
5%
82%
3%
1%
9%
Mind your money
4% 3%
84%
1%
0%
Don't know
49
10%
Have never heard of it
20%
30%
40%
50%
Have heard of it, but only know the name
60%
Know it a little
70%
80%
Know it quite well
90%
100%
Know it very well
5.4
50
Testing knowledge about financial expressions
Awareness of APR (effektiv rente)
15-17 year olds and Parents to 15-17 year olds
Only 26% of the 15-17 year olds know what APR stands for. The parents are, to a much higher degree
than the 15-17 year olds, aware of the term APR. Please notice, that 60% of the 15-17 year olds claim
that they do not know what APR stands for, and additionally 14% answers the question incorrectly. Only
23% of the girls answer the question correctly. Fathers (87%), are to a higher than mothers (72%) aware
of the term APR. Further 47+ year olds (90%) are more aware of the term. The awareness of the term is
also influenced by the household income. The higher the household income, the more are the parents
aware of the term.
Do you know what APR (annual percentage rate) is?
79%
Yes, the loan interest including all other
costs associated with the loan
26%
9%
Yes, the annual interest on a loan
9%
4%
Yes, the bank's total charges for a loan
4%
1%
Yes, the annual tax deduction on your
debt
1%
6%
Don't know
60%
0%
10%
20%
30%
40%
Parents (n=300)
51
50%
60%
70%
15-17 year olds (n=300)
80%
90%
100%
Awareness of the effect on fluctuations in interest rates
15-17 year olds
19% of the 15-17 do not know the effect of an increase in the interest rate on a loan. 14% claim not to
know, and 5% believe that they then get more money available.
If the interest rate on a loan goes up do you have...?
Base (n=300)
81%
Less money available
More money available
5%
Don't know
14%
0%
52
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Knowledge about creditworthiness
15-17 year olds and Parents to 15-17 year olds
The most important requirement for being declared creditworthy by a bank is that you prove that you
are able and willing to repay a loan. However, this is often closely linked to a monthly income. It is
interesting to notice, that 23% of the 15-17 year olds claim that they do not know what is required to
be declared creditworthy. 69% of the parents are aware of the requirements. Fathers (76%), do to a
higher degree than mothers (63%), know what it takes to be declared creditworthy.
What is required to be declared creditworthy by a bank? Creditworthy means that you can get a loan
from the bank or be granted an overdraft facility
69%
You have to prove that you are able and
willing to repay a loan
47%
29%
You have to prove that you have a
monthly income
26%
1%
You have to promise to pay back the
loan or credit facility
4%
1%
Don't know
23%
0%
10%
20%
30%
40%
Parents (n=300)
53
50%
60%
70%
15-17 year olds (n=300)
80%
90%
100%
Assets allowed
Parents to 15-17 year olds
The parents are not agreeing on how many assets young people aged below 18 years may have before the money
will be administered with the consent of the Public Trustees. 31% believe that the assets may not exceed NOK
75,000, and 12% believe that the asset can not exceed NOK 100,000. 45% claim that they do not know.
Do you know how many assets young people aged under 18 may have for the young
people or the parents to be able to administer the money themselves without the
consent of the Public Trustees? Base (n=300)
The assets may not
exceed NOK 50,000
9%
The assets may not
exceed NOK 75,000
31%
The assets may not
exceed NOK 100,000
12%
There is no limit
3%
Don't know
45%
0%
54
10%
20%
30%
40%
50%
60%
70%
80%
Assets impact on student loans and scholarships
Parents to 15-17 year olds
The majority of the parents (67%) believe that the parent’s assets and income have an influence on the student loans and
scholarships for young people. 64% believe that the young people’s own assets and income is an influencing parameter.
Please notice, that 24% of the parents claim that they do not know whether the young people’s assets and income have
any influence. This is particularly the case for the 51+ year olds, and parents with a low education.
Do the followings' assets and income reduce the level of study loans and study scholarships for
young people?
Base (n=300)
The parents' assets and
income
67%
The young people's
assets and income
64%
0%
10%
20%
12%
30%
40%
Yes
55
18%
50%
No
60%
Don't know
70%
14%
24%
80%
90%
100%
6
56
Appendix
Gender split
15-17 year olds
Gender
Base (n=300)
Girl
57%
Boy
43%
0%
57
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Age split
15-17 year olds
Age
Base (n=300)
15 years old
26%
16 years old
40%
17 years old
35%
0%
58
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Region split
15-17 year olds
Region
Base (n=300)
Oslo/Akershus
22%
Østlandet forøvrig
20%
Sørlandet
14%
Vestlandet
26%
Trøndelag/Nord-Norge
18%
0%
59
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Income split – household
15-17 year olds
Household income
Base (n=300)
Less than 500.000 NOK
21%
500.000 - 799.999 NOK
20%
800.000 NOK or more
20%
Do not know/ Do not want to
say
38%
0%
60
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Education split – on parents
15-17 year olds
Parent's highest education
Base (n=300)
Low
37%
Medium
38%
High
15%
Don't know
11%
0%
61
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Urbanization
15-17 year olds
Urbanization
Base (n=300)
Capital city area
11%
City (population over 100,000) - but not a
capital
12%
Urban, population 50,000-100,000
12%
Urban, population 10,000-49,999
21%
Urban, population below 10,000
11%
Outside urban area - rural area
32%
0%
62
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Gender split
Parents to 15-17 year olds
Gender
Base (n=300)
44%
Female
56%
Male
0%
63
10%
20%
30%
40%
50%
60%
Age split
Parents to 15-17 year olds
Age
Base (n=300)
34%
Under 47 years
34%
47-50 years
51 years or older
32%
0%
64
10%
20%
30%
40%
50%
Region split
Parents to 15-17 year olds
Region
Base (n=300)
22%
The Metropolitan area
34%
Rest of Zealand and the islands
Jutland
44%
0%
65
10%
20%
30%
40%
50%
60%
Education split
Parents to 15-17 year olds
Education
Base (n=300)
Low
39%
Medium
45%
High
15%
Do not wish to say
1%
0%
66
10%
20%
30%
40%
50%
60%
Income split – household
Parents to 15-17 year olds
Household income
Base (n=300)
Less than 500.000 kr.
27%
500.000 - 799.999 kr.
34%
800.000 kr. or more
25%
Do not know/ Do not want to say
14%
0%
67
10%
20%
30%
40%
50%
Urbanization
Parents to 15-17 year olds
Urbanization
Base (n=300)
Capital city area
20%
City (population over 100,000) - but not
capital city area
13%
Urban, population 50,000-100,000
14%
Urban, population 10,000-49,999
22%
Urban, population below 10,000
18%
Outside an urban area - rural area
12%
0%
68
10%
20%
30%
40%