- based on a market research survey among year olds and parents with children aged years

Transcription

1 Financial Literacy Dream on - based on a market research survey among year olds and parents with children aged years Please notice that results from this survey may only be published by stating: "Survey conducted for Danske Bank Group by YouGov Copenhagen, October

2 Content 1. Background and purpose 2. Methodology 3. Topics covered 4. Summary 5. Results 1. Income and consumption year olds own assessment of their income and consumption Parents attitude towards their children's income and consumption 2. Dreams year olds biggest wishes and dreams long term and short term 3. Financial literacy 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 4. Testing knowledge about financial expressions APR, children's savings accounts, creditworthiness etc. 6. Appendix Sample split on demographics 2

3 3 1 Background and purpose

4 Background and purpose Teenagers aged 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 has developed a game called Dream On. Danske Bank has defined three overall objectives for the game: Teach the year olds about healthy economic behaviour Give the year olds a greater understanding of economical instruments Provide the year olds with consumer insights In connection with the launch of the game, YouGov has, on behalf of Danske Bank, conducted a market survey which provides knowledge and understanding of the year olds knowledge about money and personal finance. The primary objectives of the survey have been to: Identify how much money the year olds earn and spend Identify the year olds long term and short term dreams, and their willingness to work to achieve them Identify the year olds level of financial literacy To ensure the broadest possible angle, the parents to year olds are included in the survey. 4

5 5 2 Methodology

6 Methodology Interview period and data collection method: The data was collected online using YouGov s Danish panel in the period from 23 September to 28 September Target group: Group 1: Teenagers aged years Group 2: Parents with teenagers aged 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

7 7 3 Topics covered

8 Topics covered Target group Group 1 Teenagers aged 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 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 years Financial literacy Do they feel that the 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

9 9 4 Summary

10 Summary Income and consumption: 59% of the year olds work in order to earn money. They do so either by working for pocket money (38%) and/or by taking a free-time job (59%). Only 29% receive pocket money they do not have to work for. Money from a free-time job is unquestionably the source of income that provides the highest amount of money. 43% of those working, earn between 1,000-1,999 DKK each month. 80% of the year olds receive less than 1,000 DKK every month in pocket money. The year olds spend on average 1,343 DKK every month. The money is primarily spent on clothes (22%), food (15%), and parties (10%). However, 10% of the monthly spending is put into savings. Only few of the year olds (38%) claim that they have a complete overview of their monthly income and expenses. 58% of the year olds claim that they, not always or never, have an overview of their monthly income and expenses. The year olds primarily borrow money from parents and other family members when they have unforeseen expenses. 33% spend their savings while 17% work more hours in their free-time job. Only 4% borrow from friends. It seems as though the year olds lend money to friends far more frequent than they borrow money from their friends. 49% of the year olds claim never to borrow money from friends, however 31% never lend money to their friends. 53% of the year olds save up when they want some expensive items, things or experiences, that they cannot afford to buy themselves. Only 16% would borrow money from their parents/family, and none claim that they would borrow money from friends. 10

11 Summary Income and consumption (continued): An unexpected present of 1,000 DKK would by most of the teenagers (43%) be spent on everyday needs. However, 32% claim that they would put it into savings. Only 11% would spend it to make a dream come true. If they were to receive a present of 5,000 DKK, 25% would spend it to make a dream come true. 55% of the year olds claim that they would put the 5,000 DKK into savings. The year olds more seldom spend large amounts of money. The frequency of purchasing expensive/larger things, trips, events etc. is naturally correlated with the costs. 37% of the year olds have spent more than 5,000 DKK on the most expensive thing they have ever bought. In this case, most of them bought a computer (an Apple-computer) or a scooter. The year olds who have spent up to 3,000 DKK on their most expensive thing/item (26%) have primarily bought a mobile phone, ipod, computer or a vacation year olds who have bought their most expensive item for 3,000-4,999 DKK (22%) have primarily bought computer, an iphone or a trip. Dreams Dreams are subjective to gender. Girls short term dreams are primarily stylish clothing, smartphones and trips to Berlin, while boys dream of smartphones, flat-screen TV s and tablets. 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 most interested in actually getting the car. Girls, on the other hand, seem to have more responsible dreams, as they to a higher degree dream of a co-operative apartment. 67% of the year olds think about which education to choose to be able to afford their dreams later. Very few (12%) are willing to compromise their education in order to be able to afford their dreams sooner. 11

12 Summary Financial Literacy: 56% of the year olds would like to know more about money and personal finances. 46% claim to be very interested in money and personal finances, and 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 (48%). It is important to notice, that the year olds assess their parents management of their personal finances far better than the parents do themselves. When assessing the year olds finances the parents and the young people themselves are far more agreeing. Almost 50% of the parents claim that they cannot assess their children s friends personal finances. 92% of the year olds claim that it is their parents that advise them about money and personal finances. 20% get advice from their bank, and this shows that banks, to a higher degree than friends (13%), are used as financial advisors. Based on the fact that almost every year old is advised by their parents about personal finances, it is natural that the parents have a major influence on the year olds own handling of money and personal finances. 91% of the year olds claim that their parents handling of money and personal finances influence their own. Only 50% of the year olds claim, that their friends have an influence on them. It is interesting to notice, that the parents believe that their own parents have had a stronger influence on them than the influence, they themselves, will have on their children. Still, 87% believe that they, to some degree, are influencing their children's handling of money and personal finances. 12

13 Summary Financial Literacy (continued): 29% of the parents claim that they have an overdraft on their account at least every six month. 47% of the parents claim never to have an overdrawn account. 55% of the year olds claim never to spend more money per month than they actually have. 8% of the year olds spend more money than they have every month. It is important to notice that only 33% of the year olds feel ready to manage their own finances. 50% of the year olds are not quite ready while 12% feel that they are not ready at all. The parents are agreeing with the year olds 69% of the parents do not feel that the year olds are well prepared to handle their own finances yet. In general, 65% of the parents believe that young people today, spend too much money. Further, few believe that young people are good at managing their own personal finances (29%). This underlines their overall negative attitude towards their children s ability to manage their personal finances. Even though only 33% of the year olds feel ready to manage their own finances, 47% do not feel that they need help and tools to manage their own finances. However, please notice, that 39% of the year olds claim that they definitely need help and tools to help managing their finances. 39% claim to be interested in a Dream-on game on the internet. 25% of the year olds answer don t know while 36% claim not to be interested in such a game. 13

14 Summary Banks trustworthiness in teaching children about financial literacy 90% of parents to year olds consider it a good thing that banks contribute with knowledge and material which can teach young people about money and personal finances. Only 6% state that they feel it is a bad idea. Danske Bank (12%) is the bank most parents associate with financial literacy training programmes, closely followed by Nordea (10%). However, please notice, that 76% 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 year olds. General knowledge about financial expressions 85% of the year olds correctly claim that one would have less money available if the interest rate on a loan goes up. However, 15% state that they do not know or answers the question incorrectly. The parents are, to a much higher degree than the year olds aware of the term APR. Only 24% of the year olds are able to answer the question correctly. It is further interesting that 34% of the parents do not know what APR stands for. The awareness of APR is higher among parents living in the Metropolitan area, and those with a household income of 800, DKK or more. Further, the awareness of APR is higher among the year olds which have parents with a higher education, and a household income of 800,000 DKK or more. However, please notice that it is especially the parents with a high education and income that feel that their child is not at all ready to handle own finances. Only 32% of the year olds, and 58% of their parents are correctly stating ti that, t the most important t requirement for being declared creditworthy by a bank is proof of willingness and ability to repay the loan. 68% of the year olds and 42% of the parents cannot correctly indicate what is required to be declared creditworthy by bank. 14

15 15 5 Results

16 5.1 Income and consumption year olds own assessment of their income and consumption Parents attitude towards their children's income and consumption 16

17 Source of income year olds A majority of the year olds (59%) work in order to earn money. They do so either by working for pocket money and/or by taking a free-time job. 29% get pocket money they do not have to work for, and 24% get money from their parents besides pocket money when they require it. How do you get money to spend? I get pocket money that I have to work for 38% Pocket money (NET) 59% I get pocket money that I do not have to work for 29% I regularly get money besides pocket money, e.g. from my parents when I need it 24% Free-time job 59% Student grant 2% Spend my savings 10% Other 10% Do not get any money 3% Don't know 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 17

18 Source of income and money earned year olds Money from a free-time job is unquestionably the source of income that provides the highest amount of money. 43% of those working in a free-time job earn between 1,000-1,999 DKK each month. 80% of the year olds receive less than 1,000 DKK every month in pocket money. Boys seem to earn more money by working than girls. 28% of the girls earn less than 1,000 DKK each month, while 14% of the boys earn 3,000-3,900 DKK each month. Naturally, the older you are, the more money you get from a freetime job. How much money do you get... Pocket money (n=176) (None=41%) 80% 14% 2% 2% 1% Money from fee-time job (n=176) (None=41%) 23% 43% 17% 13% 5% Extra money (n=202) (None=31%) 81% 7% 1% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18 Less than DKK 1,000 DKK 1,000-1,999 DKK 2,000-2,999 DKK 3,000 or more Don't know

19 Money spent year olds The year olds spend on average 1,343 DKK every month. The money is primarily spent on clothes (22%), food (15%), and parties (10%). However, 10% 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, other shopping and gifts, while boys spend more money on parties and gaming. Money spent on a monthly basis: Money is spent on: Sports 2% Cigarettes 2% Repaying a loan 1% Travel 1% Money spent on average: 1,343 DKK kr kr kr kr kr kr Gaming 3% Gifts 4% Other 4% Mobile phone bill 5% Charities 0% Clothes 22% kr kr Events 6% kr 500 kr 0 kr 500 Bottom quartile (1st) Median Top quartile (3rd) Maximum amount spent: 10,750 DKK Minimum amount spent: 50 DKK 19 Top 90% Transport 7% Other shopping 9% Parties 10% Savings 10% Food 15%

20 Overview of income and expenses year olds Only 38% of the year olds claim that they have a complete overview of their monthly income and expenses. 58% of the year olds claim that they, not always or never, have an 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)? Yes, completely 38% No, not always 46% No (NET) 58% No, never 11% Don't know 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20

21 Actions taken towards unforeseen expenses year olds The year olds primarily borrow money from parents and other family members when they have unforeseen expenses. 33% spend their savings while 17% work more hours in their free-time job. Only 4% borrow from friends. What do you do if you have unforeseen expenses? Get or borrow money from my parents/family 56% Spend my savings 33% Work more hours in my free-time job 17% Borrow money from my friends 4% Other 8% Ignore it 1% Don't know 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 21

22 Borrowing and lending out money year olds It seems as though the year olds believe that they lend money to friends far more frequent than they borrow money from their friends. 49% of the year olds claim never to borrow money from friends, however less than 31% never lend friends money. The older they are, the more frequent they lend out money. Girls seem to lend out, and borrow, money more frequently than boys. How often do you do the following? Borrow money from your friends 12% 9% 4% 24% 49% 2% Lend your friends money 18% 12% 9% 26% 31% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Every month About every other month About every third month More rarely than every third month Never Don't know 22

23 The use of unexpected money year olds An unexpected present of 1,000 DKK would primarily be spent on everyday needs. However, 32% claim that they would put it into savings. Only 11% would spend it to make a dream come true. If they were to receive a present of 5,000 DKK, 25% would spend it to make a dream come through. 55% of the year olds claim that they would put it into savings. Girls would to a higher degree spend 1,000 DKK on everyday needs. 15 year olds would to a higher degree than the year olds put the unexpected 1,000 DKK into saving. If you unexpectedly received a present of DKK 1,000 or DKK 5,000 how would you mainly spend it? DKK % 32% 11% 10% 4% DKK % 55% 25% 2% 8% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Spend it on everyday needs Savings Spend it to make a dream come true Repay a loan Other Don't know 23

24 Expensive wishes year olds A majority of the year olds (53%) save up when they want some expensive things/items/experiences that they cannot afford to buy themselves. Only 16% would borrow money from their parents/family, however none claim that they would borrow money from friends. It is especially those living in Larger Copenhagen and those claiming to have an overview of monthly income and expenses that save up. What do you typically do if you want something expensive that you cannot afford to buy yourself? Save up 53% Borrow money from my parents/family 16% Get money from my parents/family 16% Work more hours in my free-time job 7% Borrow money by other means 0% Borrow money from my friends 0% Other 4% Don't know 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 24

25 Money spent on larger things, trips, events etc year olds Naturally, the year olds more seldom spend large amounts of money. The frequency in the purchasing of things, trips, events etc. are naturally correlated with the costs. How often do you spend your own money on bigger things, trips, events, etc. that cost...? Less than DKK % 17% 14% 14% 15% 10% DKK % 14% 19% 28% 23% 11% DKK 1,000-1,999 2% 4% 12% 36% 35% 10% DKK 2,000-2,999 1% 2% 4% 34% 48% 10% DKK 3,000-4,999 1% 3% 31% 54% 10% DKK 5,000-7,499 1% 2% 20% 67% 10% DKK 7,500-9,999 1% 2% 15% 73% 9% DKK 10,000 or more 1%1% 14% 76% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Every month About every other month About 1-2 times every six months More rarely than every six months Never Don't know 25

26 Cost and type of most expensive thing, event or trip ever bought year olds 37% of the year olds have spent more than 5,000 DKK on the most expensive thing they have ever bought. In this case they primarily bought a computer, (an Apple-computer) or a scooter. The year olds that have spent up to 3,000 DKK on their most expensive item have primarily bought a mobile phone, ipod, computer or a trip year olds that have bought their most expensive item for 3,000-4,999 DKK have primarily bought computer, an iphone or a trip. The older they are, the more expensive is the most expensive thing ever bought. 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 that have indicated this item Up to DKK (26%) DKK (22%) DKK or more (37%) 26

27 5.2 Dreams year olds biggest wishes and dreams long term and short term 27

28 Dreams long term and short term year olds Dreams are related to gender. Girls short term dreams are primarily stylish clothing, smartphones and trips to Berlin, while boys dream of smartphones, flat-screen TV s and tablets. Short term dreams 1. Smartphone 2. Stylish item of clothing 3. Tablet 4. Flat screen TV Girls 1. Stylish item of clothing (25%) 2. Smartphone (20%) 3. Weekend trip to Berlin (16%) 4. Tablet (11%) Boys 1. Smartphone (23%) 2. Flat-screen TV (19%) 3. Tablet (15%) 4. Gaming console (11%) 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 have more responsible dreams, as they to a higher degree dream of a co-operative apartment. Long term dreams 1. Driver s licence 2. Car 3. Co-operative apartment 4. Backpack trip to Asia Girls 1. Driver s licence (36%) 2. Co-operative apartment (20%) (andelslejlighed) 3. Car (12%) 4. Backpack k trip to Asia (11%) Boys 1. Driver s licence (28%) 2. Car (27%) 3. Backpack trip to Asia (10%) 4. Moped/Scooter (9%) 28

29 Dreams short term year olds Which of the following do you dream of most, in the short term? Smartphone (e.g. iphone) 22% Stylish item of clothing 18% Tablet (e.g. ipad) 13% Flat-screen TV 12% Weekend trip to Berlin 11% Festival ticket 9% Gaming console (e.g. PlayStation 3) 6% Inter-rail ticket 3% Fitness subscription 3% Designer bag 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 29

30 Dreams long term year olds Which of the following do you dream of most, in the long term? Driver's licence 32% Car 19% Co-operative apartment (Danish: Andelslejlighed, flat under multi-ownership scheme) Backpack trip to Asia 12% 10% Laptop computer 8% Moped/Scooter 6% Ski holiday in France 4% Voluntary work in Africa 4% Summer holiday in Sunny Beach 3% Folk high school course (Danish: Højskole) 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 30

31 5.3 Financial Literacy 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 31

32 Attitude towards education and dreams year olds 67% of the year olds think about which education to choose to be able to afford their dreams later. Very few are keen on start working soon instead of getting an education to be able to afford their dreams earlier year olds attitude towards education and dreams Disagree (NET) I think about which course of education I should choose, 26% to be able to afford my dreams later 9% 18% 43% 24% Agree (NET) Don't know 67% 7% I want to start working soon, to be able to afford my dreams 63% 14% 49% 22% 7% 29% 8% My priority is to start working soon, rather than a course of education, so I can afford my dreams sooner 83% 48% 35% 10%2% 12% 5% 120% 100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100% 120% Disagree (2) Strongly disagree (1) Agree (3) Strongly agree (4) 32

33 Attitude towards money and personal finances year olds 56% of the year olds would like to know more about money and personal finances. 27% agree on that they do not know how to get knowledge about the area. 46% claim to be interested in money and personal finances, and 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 (48%) year olds attitude towards money and personal finances I think I would be better able to afford to live out my dreams if I knew more about money and personal finances Disagree (NET) Agree (NET) Don't know 39% 12% 27% 40% 8% 48% 12% I am very interested in money and personal finances 45% 6% 39% 36% 9% 46% 9% I would like to know more about money and personal finances 33% 6% 27% 49% 7% 56% 11% I do not know where to get knowledge about money and personal finances 61% 17% 44% 25% 2% 27% 12% 120% 100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100% 120% Disagree (2) Strongly disagree (1) Agree (3) Strongly agree (4) 33

34 Assessment of handling money and finances year olds and parents to year olds It is important to notice, that the year olds assess their parents management of their personal finances far better than the parents do themselves. When assessing the year olds finances the parents, and the youth themselves, are far more agreeing. It is interesting that almost 50% of the parents claim that they cannot assess their children s friends personal finances. 100% 90% 80% 70% 60% 50% 40% 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? 7,81 21% 14% 29% 6,24 5,08 6,5 5,07 8,36 5% 1% 4% 2% 1% 8% 7% 5% 6% 12% 15% 20% 17% 11% 14% 10% 7% 1% 1% 30% 16% 15% 13% 47% 10% 7% 20% 6% 9% 8% 2% 3% 5% 4% 10% 7% 6% 5% 2% 1% 13% 3% 2% 3% 2% 2% 1% 1% 2% 4% 5% 2% 0% 2% You yourself Your child Your child's childs friends You yourself Your friends Your parents 18% 19% 15% 16% 26% 13% 36% 20% 17% Parents year olds Don't know Very badly Very w ell

35 Advice about money and personal finances year olds 92% of the 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. 20% get advice from their bank, and this indicates that banks, to a higher degree than friends, are used as advisors when it comes to personal finances. Who advises you about money and personal finances? Parents 92% The bank 20% Friends 13% Other family 13% Others 7% No-one 2% Don't know 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 35

36 Influents regarding the handling of money and personal finances year olds 91% of the year olds claim that titi is their parents who advise them about money and personal lfinances, and dit is therefore only natural that the parents have a high influence on the youths own handling of money and personal finances. It is however also important to notice that only 50% of the year olds claim, that their friends have an influence on them. 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? Yes (NET) 91% Your parents have an influence 56% 35% 4% 5% Yes (NET) 50% Your friends have an influence 8% 42% 45% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes, definitely Yes, partly No Don't know 36

37 Influents regarding the handling of money and personal finances Parents to year olds It is interesting ti to notice, that t the parents believe that t their own parents influence on them have had a stronger impact on them than the influence, they themselves, will have on their children. However, a majority believe that they are influencing their children's handling of money and personal finances. 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? Yes (NET) 81% Own parent's influence 41% 40% 16% 3% Yes (NET) 87% Own influence 32% 55% 9% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes, definitely Yes, partly No Don't know 37

38 Overdrawing an account Parents to year olds 29% of the parents claim that they have an overdraft on their account at least every six month. 47% of the parents claim never to have an overdraft on their account. How often is your account overdrawn? Every month 9% About every other month 6% About 1-2 times every six months 14% More rarely than every six months 21% Never 47% Don't know 3% 0% 10% 20% 30% 40% 50% 60% 38

39 Overspending year olds A majority of the year olds claim never to spend more money per month than they actually have. If we compare an overdrawn account to overspending, it seems like the year olds are less willing to overspend than their parents. However, this can be due to the fact that the year olds do not have the possibility of overdrawing an account. One should also take into consideration that an overdrawn account can be approved by the bank through a credit line and thereby part of a monthly budget. It is also important to notice that the parents have a larger economy and several more fixed expenses. How often do you spend more money per month than you actually have? Every month 8% About every other month 6% Spend more money than they have (NET) 39% About every third month 5% More rarely than every third month 20% Never 55% Don't know 5% 39 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

40 Readiness to manage own finances year olds It is very important to notice that only 33% of the year olds feel ready to manage their own finances. 50% of the year olds are not quite ready while 12% feel that they are not at all ready. Do you feel that you are ready to manage your own finances, e.g. in terms of travelling or studying? Yes, definitely 33% No, not quite 50% No (NET) 62% No, not at all 12% Don't know 5% 40 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

41 Readiness to manage own finances (1/2) Parents to year olds The parents agree with the year olds they do not feel that the year olds are quite ready to handle their own finances. 30% indicate that their child is generally prepared but 69% feel that their child is not prepared. It is especially the parents with a high education and income that feel that their child is not at all 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? Yes, definitely 30% No, not quite 54% No (NET) 69% No, not at all 14% Don't know 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 41

42 Readiness to manage own finances (2/2) Parents to year olds 65% of the parents believe that young people today, generally spend too much money. Further, only few (29%) believe that young are good at managing their own personal finances. This underlines their opinion that their children aged years old, are not quite ready to manage their own finances. 42

43 Need of help and tools to manage own finances year olds Even though only 33% of the year olds feel ready to manage their own finances, 47% do not feel that they need help and tools to manage their own finances. However, please notice, that 39% of the year olds claim that they definitely need help and tools to help managing their finances. Do you feel that you need help and tools to help you manage your own finances? Yes, definitely 39% No, not quite 35% No (NET) 47% No, not at all 11% Don't know 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 43

44 Interest in Dream-on game year olds 39% claim to be interested in a Dream-on game on the internet. Please notice that the Don t know share is very high (25%). This implies that the game would have to be interesting before the young become interested. 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)? Yes, definitely 39% No 36% Don't know 25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 44

45 Parents attitude towards banks contributing in teaching their children FL Parents to year olds 9 out of 10 parents to year olds consider it a good thing that banks contribute knowledge and material that can teach young people about money and personal finances. Do you consider it a good thing that banks contribute knowledge and material that can teach young people about money and personal finances? Yes, definitely 61% Yes (NET) 90% Yes, partly 29% No 6% Don't know 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 45

46 Parents awareness of banks contributing in teaching their children FL Parents to year olds Danske Bank (12%) is closely followed by Nordea (10%) the bank most parents associate with financial literacy training programmes. However, please notice, that 76% 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? Danske Bank 12% Nordea 10% Jyske Bank 7% Nykredit 3% Sydbank 2% Don't know 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% 46

47 Parents awareness of FL training programmes Parents to year olds All the mentioned financial literacy training programmes have low levels of aided awareness among parents to year olds. What do you know about the following financial literacy training programmes? Pengeby.dk 1% 7% 80% 7% 3% 2% Controlyourmoney.dk 1% 8% 86% 3% 2% 1% Mind your money 86% 4% 8% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Don't know Have never heard of it Have heard of it, but only know the name Know it a little Know it quite well Know it very well 47

48 5.4 Testing knowledge about financial expressions 48

49 Effect of interest rate on a loan year olds 85% of the year olds correctly claim that one would have less money available if the interest rate on a loan goes up. However, 10% claim that they do not know, and 4% believe that one would have more money available. If the interest rate on a loan goes up do you have...? Less money available 85% More money available 4% Don't know 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 49

50 Awareness of APR year olds and Parents to year olds The parents are, to a much higher degree than the year olds aware of the term APR. Please notice, that 61% of the year olds claim that they do not know what APR stands for, and additionally 15% answers the question incorrectly. It is further interesting that 17% of the parents claim not to know what APR stands for, and that 17% of the parents answers the question incorrectly. This is especially the case for mothers. Fathers are, to a much higher degree, aware of what APR stands for (76%). The awareness of APR is furthermore higher among parents living in the Metropolitan area, and those with a household income of 800,000 DKK or more. Further, the awareness of APR is higher among the year olds which have parents with a higher education, and a household income of 800,000 DKK or more Do you know what APR (annual percentage rate) is? Yes, the loan interest including all other costs associated with the loan 24% 66% Yes, the annual interest on a loan 12% 11% Yes, the bank's total charges for a loan 4% 3% Yes, the annual tax deduction on your debt 1% 1% Don't know 17% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 50 Parents (n=300) year olds (n=300)

51 Awareness of access to children s savings accounts year olds and Parents to year olds A majority of both parents and the year olds believe that children can have access to their childsavings account when they turn 18. In reality, this depends on when the account is created. However, the account needs to be active for at least 7 years and cannot be touched before the child turns 14. Do you know when children can have access to their own child savings accounts? Yes, when they reach 15 4% 6% Yes, when they reach 18 38% 41% Yes, when they reach 21 17% 16% Yes, the parents decide 29% 32% Yes, the child decides 0% 0% Yes, the bank decides 0% 0% Don't know 6% 10% 0% 10% 20% 30% 40% 50% 60% Parents (n=300) year olds (n=300) 51

52 Knowledge about creditworthiness year olds and Parents to 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 ¼ of the year olds claim that they do not know what is required to be declared creditworthy. Fathers, do to a higher degree than mothers, know what it takes to be declared creditworthy. This is further the case among parents with a household income of 800, DKK or more, and parents with higher education. 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 You have to prove that you are able and willing to repay a loan 32% 58% You have to prove that you have a monthly income 35% 39% You have to promise to pay back the loan or credit facility 2% 3% Don't know 4% 26% 0% 10% 20% 30% 40% 50% 60% 70% 52 Parents (n=300) year olds (n=300)

53 53 6 Appendix

54 Gender split year olds Gender Girl 54% Boy 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 54

55 Age split year olds Age 15 years old 31% 16 years old 31% 17 years old 37% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 55

56 Region split year olds Region The Metropolitan area 19% Rest of Zealand and the islands 35% Jutland 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 56

57 Income split household year olds Household income Less than kr. 17% kr. 30% kr. or more 16% Do not know/do not want to say 37% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 57

58 Education split on parents year olds Parent's highest education Low 32% Medium 36% High 22% Don't know 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 58

59 Urbanization year olds Urbanization Capital city area 16% City y(population p over 100,000) - but not a capital 12% Urban, population 50, ,000 14% Urban, population 10,000-49,999 20% Urban, population below 10,000 24% Outside urban area - rural area 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 59

60 Gender split Parents to year olds Gender Female 44% Male 56% 0% 10% 20% 30% 40% 50% 60% 60

61 Age split Parents to year olds Age Under 47 years 34% years 34% 51 years or older 32% 0% 10% 20% 30% 40% 50% 61

62 Region split Parents to year olds Region The Metropolitan area 22% Rest of Zealand and the islands 34% Jutland 44% 0% 10% 20% 30% 40% 50% 60% 62

63 Education split Parents to year olds Education Low 39% Medium 45% High 15% Do not wish to say 1% 0% 10% 20% 30% 40% 50% 60% 63

64 Income split household Parents to year olds Household income Less than kr. 27% kr. 34% kr. or more 25% Do not know/ Do not want to say 14% 0% 10% 20% 30% 40% 50% 64

65 Urbanization Parents to year olds Urbanization Capital city area 20% City (population over 100,000) 000) - but not capital city area 13% Urban, population 50, ,000 14% Urban, population 10,000-49,999 22% Urban, population below 10,000 18% Outside an urban area - rural area 12% 0% 10% 20% 30% 40% 65