Teenage Tycoons

Research reveals that British youths are big savers for tomorrow

A national survey, commissioned by one of the UK's largest Internet portals Lycos.co.uk, has today revealed that teenagers are more conscientious about saving money than the over 45s.

The results were unearthed by an MORI Technology survey to examine the financial intentions and saving patterns of the British public, to support the launch of the Money Channel, a new free online money management service from Lycos.co.uk.

The research highlights that a massive two thirds, (68%),15 - 34 year olds want to save more money in 2001 despite their reputation for spending cash on CDs, clothes and going out. This represents almost 11 million people in this age band who want to save more.

The 15-20 year old age group is far more likely to want to save more compared to over 45s. Over a third (36%)of them are looking to invest in more long-term plans, for example homes (26%), pensions (6%), investing on the financial market (7%) and private healthcare (4%).

Interestingly, Brits aged 35-54 are most likely to be saving for unforeseen circumstances. According to Alex Kovach, Managing Director, Lycos UK, it these individuals, who what to make their money work for them, that The Lycos Money Channel is primarily designed for.

"We were genuinely surprised that the younger generation has taken this sensible approach to saving! The great news about The Lycos Money Channel is that it offers both experienced and novice customers with free, simple, intuitive guidelines and advice into the world of finance."

"For the more experienced users there is financial advice and solutions which are ideal for those hoping to improve their money management. Other services include a savings calculator, investment ventures, advice on the stock market and tips for starting your own business.

"While our first-time savers can use a jargon buster to help them learn about different investment ventures and try their hand on the stock market." Mr Kovach concluded.

Alnoor Samji, Partner at MORI says "MORI Technology research shows that more than half (54%) of 15 - 20 year olds have access to the Internet. This research for Lycos shows that they are ambitious. With determination and easier access to information, they stand a better chance of achieving their objectives - if they aren't seduced by on-line shopping first!"

Other key findings from the survey include:

• Half (53%) of the British population would like to save more money in 2001 and three in ten (31%) people would like to spend less
• Work hard, play hard is the British Mantra - nearly half the population will be putting money aside to go on holiday this year, and a fifth (20%) of the nation can't save as much as they want, due to going out for drinks or food
• The sound of church bells is definitely not in the pipeline for the majority of Britons - only four per cent are saving up for their wedding, while nearly 3 times that, 11 per cent, are saving for a house or flat and twice as many (8%)are planning to buy a new kitchen or bathroom
• It's official, Londoners definitely spend more on clothes and going out compared to those in the South West or Scotland - 35% cannot save as much as they want to because of buying clothes, going out for drinks, and eating out compared to 24% in Scotland and 22% in the South West
• Despite the April 2000 collapse on the stock market, Britons haven't lost all faith in the financial markets. Nine per cent would like to invest their money on stocks in 2001
• Holding out for Granny's Will may be fruitless - only 29 per cent of those aged over 55 plan to save more money in 2001 and only nine per cent are going to pay off their credit card bills and other debts

Lycos is supporting the launch of the Money Channel with integrated promotions, giving users the chance to start the year with some extra financial support. To find out more simply visit http://money.lycos.co.uk.

Technical details

The research was conducted from 4 - 8 January 2001 in 194 sample points across Great Britain as part of a MORI Omnibus. A total of 2,073 interviews were conducted face-to-face in home with a nationally representative sample of GB adults aged 15+. Data were weighted to match known population profile.