Alliance and Leicester: From high school to high flyer

Almost a quarter (24%) of ambitious 16-21 year olds expect to earn around twice the national average or above within the next 10 years

8 out of 10 (81%) expect to own their own property by the age of 30.

A third (32%) aim to be debt free by the age of 35.

Research* released today by Alliance and Leicester reveals that the profile of the average teenager is changing - today's younger generation is a financially ambitious group with almost a quarter (24%) 16-21 year olds in employment expecting to be earning over £40,000 in as little as 10 years time - this could be over double the national average wage of £23,244**.

The earning ambitions of young people in employment mean financial goals are being mapped out early on, with 8 out of 10 (81%) expecting to own a property by the time they reach 30 years old, and nearly a third (32%) aiming to be debt free by the age of 35***.

At the same time, current trends show that the average graduate will have racked up around £20,000 of debt**** - a huge amount that is likely to take many years to pay back.

Of those who opted against the higher education route, over a quarter (26%) of young people in employment are already debt-free and so will be able to set their sights on a significant disposable income in the near future.

Managing the finances.

Over four in ten (44%) of those who decided to go straight into work say they are more cautious with their money since starting employment.

A further four in ten (43%) say they have a more accurate picture of their current account balance and where their money is going since starting work.

Debt concerns.

One in four (43%) say that debt that students accumulate at university is one of the main reasons they decided not to go to university.

University is not an option for a quarter (26%) of 16-21 year olds as they admit they can not afford to go.

However, over a quarter (26%) of young people in employment are debt free.

Helen Palmer, Current Accounts Manager at Alliance and Leicester said: "These days, young people have high financial and lifestyle aspirations and getting on the career ladder early can be the quickest way to achieve their goals for many".

"As a group they recognize the growing trends of graduate debt, and in contrast the potential advantages of going straight into employment - especially climbing the first rung of the property ladder and earning substantial amounts of money".

""It is important for this group to maximize the potential of their hard earned cash and this isn't about clever investment choices or making timely and strategic financial decisions - it's about basic management of money in a current account".

""The recent launch of our Premier 21 account - which is specifically tailored to this group - offers young people in employment the highest credit interest rate on the high street to help make their pay packets stretch further".

"And with such high hopes for their earning potential it is important that young people also learn the benefits of putting money aside for a rainy day and our linked PlusSaver account allows them to do just that." Helen Palmer continues: "Many high street banks still tend to overlook the needs of young people other than the undergraduate group, so we are proud to have designed this highly competitive account with unrivalled rates and benefits to recognise the needs of this specific group." The Premier 21 Account offers the following: A best - buy credit interest rate of 10% fixed for at least one year from account opening on balances of up to £1,000.

Balances over £1,000 earn 0.10% gross.

Guaranteed minimum overdraft of £250 subject to minimum age of 18 years and credit scoring.

£10 ATM buffer zone giving customers emergency access to the last few pounds in their account via an ATM, even if the balance is below £10 (and in credit).

Linked PlusSaver account with 4.80% AER interest rate (3.84% net).

Visa Debit card Easy switching service.

Free mobile phone top ups via Mobile Banking.

Cheque book available on request.

Notes: *Alliance and Leicester research conducted by YouGov between 25th April and 4th May 2007.

The sample is based on 1,011 UK citizens between the ages of 16-21 who are in either part-time or full-time employment.

**Source: www.statistics.gov.uk/cci/nugget.asp?id=285 UK national average weekly wage was £447 in 2006.

This works out as a yearly average of £23,244.

*** A third (32%) aim to be debt free by the age of 35.

This figure excludes mortgage debt.

**** Figures on student debt from www.nusonline.co.uk/campaigns/stopfeesnow/268047.aspx Alliance and Leicester Alliance and Leicester offers a range of market-leading and award-winning current accounts that can be accessed via store, online or phone.

Premier Direct Current Account customers benefit from 6.5% AER on balances up to £2,500 and the Premier Current Account comes with free travel insurance.

To find out more simply log on to www.alliance-leicester.co.uk/currentaccounts.

This product will be available exclusively for 16 - 21 year olds.

Customers will be automatically migrated to Premier Direct at age 22 Customers must be able to fund their account with a minimum of £250 per month.

Customers must credit score for the Visa debit card and an email address is compulsory.

Overdrafts will only be available for customers aged 18 or over and who meet credit scoring criteria Internet access is required to view statements and manage the account.

Back to top