Facts & Figures

• According to YouthSCAN, a survey by Quantum Market Research, the average amount of pocket money received in Australia in 2003 was $8.15 a week. This did not include money earned for chores, which was, on average, $3.10 a week, or money given to children for things they had to have, which averaged $5.80 a week.

• The YouthSCAN survey found girls are most likely to spend their money on clothing, entertainment and presents, whereas boys spend more on snacks and tuckshop. Teens also save more of their income, whether that be from pocket money or a part-time job.

• The YouthSCAN survey of more than 1000 children aged 10-17 years reveals that children often receive “other money” to supplement their pocket money. The additional money, which can come from gifts or extra cash given by parents, averages just over $18 a week.

• In 2001, the peak earning bracket for young people 15-19 years was $40-$79 a week. For 20-24-year-olds it was $400-$499 a week.

• The Australian Democrats’ Youth Poll 2003 found that 52% of respondents were predominantly reliant on their parents or family for income. The survey was of 15-25 year-olds in all states and territories. 28% of the respondents derived their primary form of income from employment (compared with 20% in 2002). The poll also found that 16% of respondents received Youth Allowance, and 2% received other Social Security benefits.

• Children have more money and more economic clout than ever before. Their annual global purchasing power is estimated at more than $450 billion, and in Australia the Federal Government suggests young consumers are worth at least $4 billion each year to the economy.

• The amount of money available to children is growing. The average amount of pocket money has doubled in the past 10 years, with one in four children aged 10-17 receiving more than $50 a week, according to YouthSCAN.

Some findings from the Youth Debt report:
• A majority of respondents thought that debt was an issue of concern to some degree – parents (70%), 15-24 year olds (60%).

• Amongst young people, debt ranks behind excessive drinking, close to drugs but ahead of unemployment and youth suicide.

• Those in the lower income and education brackets are more susceptible to being snared in a vicious circle of debt.

• Geographic factors intrude on youth debt. Young people in regional areas leave school earlier and incur debt sooner.

• Changing the attitudes of young people to credit poses challenges. They are a tough audience. A paternalistic approach will almost certainly prove unproductive. (p.21)

• A sizeable minority think youth debt is a major problem: 30% parents, 22% of youth.

• With 18-24 year olds, nearly a quarter have experienced debt that has caused them some grief according to their own and parents’ reports. The figure for the under 18’s is somewhere around the 10% mark.

• Some 55% of young people say they have either been in debt themselves or know someone who has.

• Youth is caught up in the prevalent credit mentality. “Have now, pay later” is now a deeply embedded social moré. Young people are being conditioned by this even at close quarters within their families as the more honest parents will admit.

• There is strong peer group pressure to conform; having the “right” lifestyle accoutrements is a trademark of “belonging”. Parents come down hard on the image making of marketers and the media.

• What are accepted as virtual lifestyle necessities for youth today are expensive and stretch young people’s means: mobile phones, the “brand” uniforms, clubbing and eating out, getting an education (if parents don’t shoulder all the bill), having a car.

According to a study by University of Newcastle academics Dr Margaret Griffiths and Bill Renwick:
• More than half of the 18 to 24 year-olds interviewed had credit card or personal loan debts of more than $14,000, while a quarter had debts over $20,250.

• 34 per cent of young people also had telephone debts, with 78 per cent of these owed to mobile phone companies. The typical telephone debt for a quarter of this age group was $5000.

• Overall, the study found unemployment the biggest cause of financial over-commitment for all age groups (28 per cent), followed by excessive use of credit (19 per cent), ill health (18) and domestic discord (14).

• Credit card debt was highest among those aged 65 and over (70 per cent of this group), while housing loans problems were most prevalent in the 25 to 44 year age bracket (11 per cent).

• The class of 2005 will pay more to go to university – about $14,000 for an arts degree and up to $50,000 to train as a doctor – but once in the workforce, they can earn $36,000 before they start repaying the debt.