The Credit Crunch, the best thing to happen to young people?

Young people can’t get credit, so why should they be bothered about a credit crunch? We asked 500 12 – 17 years olds if it is having any impact on their day to day lives, their future plans, who they blame and what they would do if they were in charge.

Poor old teenagers, as if they don’t have enough to worry about with relationships, spots and exams; they are now all in debt as well – all before their 18th birthdays. Not personally in debt perhaps – but as a whole they’re aware that they will be the ones paying off the debts of the generation who amassed them. For this reason and others, 66% of young people are worried about the credit crunch and 20% are already rethinking their plans for the future.

But is this such a bad thing? Young people are rethinking their plans for the future, but are doing so in practical ways that apply directly to them i.e. thinking about a different career, needing to have more qualifications and even considering if university is the right path for them.

In terms of spending 12-17 year olds say they are also feeling the pinch, with over half spending less and saving more. Whilst this may not be good news for retailers in the short term, in the long run we may have created a generation of financially savvy youngsters who will not be held ransom to the bonuses and excessiveness of the banking sector. Still, it’s good to see not all young people are so prudent with 38% not spending any less than they used to and 10% actually spending more!

Whilst young people are aware of the money in their own pockets, they’re equally aware of the impact of the credit crunch on their parents, with over half saying their families are spending less, saving more and buying cheaper alternatives. Upsettingly, 25% of young people surveyed had parents who were worried about losing their jobs and 10% who had lost a job recently, making many of our respondents reluctant to ask their parents for money like they used to.

So with all this worry about the credit crunch we asked who is to blame and got a resounding answer......the banks! Which raises an interesting question, will the credit crunch have created a generation of young people with a deep mistrust for banks and their executives??

If so, how would our 12-17 year olds go about fixing the state of our economy and what would they do differently? 60% of our respondents had no idea but many of them had some interesting suggestions. So we’ll leave you with just a few examples from our future prime ministers, bankers and economists...

• Sue President Bush
• I would give everyone £1000 to spend at the shops so that the money went back into the economy.
• I would cut the income tax, increase the income threshold and give a break for all mortgage payments and last of all reduce the interest on master cards.
• Erase everybody's debts and start over again.
• I think that there shouldn't be any tax or VAT. We should be living freely with no stress with money.
• Get rid of Gordon Brown and Alistair Darling... Cut the wages of bank executives and get rid of the bonus culture.
• The credit crunch will fix itself
• Pass a law to make banks start lending again, especially to small businesses - with the Bank of England offering backup emergency funds to the banks.
• Print more money

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