insight
Evidence type: Insight i
Qualitative research is more exploratory, and uses a range of methods like interviews, focus groups and observation to gain a deeper understanding about specific issues - such as people’s experiences, behaviours and attitudes.
Quantitative research uses statistical or numerical analysis of survey data to answer questions about how much, how many, how often or to what extent particular characteristics are seen in a population. It is often used to look at changes over time and can identify relationships between characteristics like people’s attitudes and behaviours.
As young people gradually take on responsibility for managing their money, perhaps as they go to college or start living independently for the first time, they can be particularly vulnerable to making poor financial decisions that will affect them in the long term. This research was a response to the finding that one in five young adults are in some financial difficulty and hypothesised that, after age 16, the influence of parents on attitudes and behaviours is likely to diminish and that 16-21 year-olds might instead learn from the financial experience and regrets of 22-29 year-olds.
The Money Advice Service (MAS) and its research partner 2CV conducted this study with young people (aged 16-29), in order to understand:
The research involved moderated group sessions in all four nations of the UK. These encompassed:
The overarching aim of the study was to explore why young adults get into financial difficulty and how they can prevent getting into bad money habits.
The findings do not directly address all of the research questions, but identify:
The financial regrets of young people:
The role of independence:
A narrow-minded attitude to money:
Difficulty discerning bad decisions from good:
Naïve optimism:
Scope for opportunity:
The impact of learning from the regrets of people slightly older than them:
The research concluded by emphasising the importance of reframing the idea of ‘being good with money’ so that money management is seen as less of a restrictive activity and more of an essential step towards transitioning to independence. The research also highlighted the role of parents, schools and financial institutions in supporting young people to develop and practice their financial skills and knowledge.
It’s time to talk: young people and money regrets - full report
It’s time to talk: young people and money regrets - full report