Understanding Savings, Pensions and Life Assurance in 16-21-Year-Olds

Abstract

This article examines the relationship between demographic variables (age, sex, education), knowledge of, and attitudes towards, savings, pensions and life assurance in a sample of British 16-21year-olds.In all 452 young people from a variety of backgrounds completed a questionnaire, divided into three knowledge and three attitude sections. A factor analysis of each of the attitudes towards savings, pensions and life assurance scales revealed clearly interpretable factors. A correlational analysis showed participants’ knowledge of each of the three economic issues to be positively correlated. Regression analysis showed that age, education, amount of money saved and knowledge of savings, pensions and life assurance were among the most important predictors of attitudes towards the three economic issues.

Young People's Ignorance about the Topic of Taxation

“…The understanding of banking, pricing and profits follows some years later in early adolescence. Furnham and Goletto-Tankel (2002) found 16-21 year-old British students lamentably ignorant about the topic of pensions and life assurance though they did show attitudes clearly related to technical knowledge about these issues. They concluded that understanding of such issues comes mainly with involvement in the economy.…”

“…Hence, they are unlikely to be good educators of their children. There is also evidence that children express little interest in, and concern with, economic issues that they do not see as currently relevant to them (Furnham & Goletto-Tankel, 2002). However, taxation, perhaps more than pensions and life assurance, is at the heart of many political ideologies and the topic may most beneficially be discussed within that context.…”

Economics Coursework and Long-Term Behavior and Experiences of College Graduates in Labor Markets and Personal Finance

“…Both the business and economics majors also place less importance than general majors on saving to repay debt. In a sample of British youth (ages 16–21), Furnham and Goletto‐Tankel (2002) found that more education led to more positive attitudes about saving. Our results support the few earlier studies that suggest the specific field of study students pursue, as well as overall level of education, is important.…”

Quebec young adults’ use of and knowledge of credit

“…A study by Furnham and Goletto-Tankel (2002), however, suggested that knowledge of saving, pensions and insurance can be predicted by the attitudes towards these concepts. A study by Furnham and Goletto-Tankel (2002), however, suggested that knowledge of saving, pensions and insurance can be predicted by the attitudes towards these concepts.…”