Teens save more than parents but owe friends about £1.5m

THEY are notorious for demanding money from their parents in a bid to get the latest ‘must-have’ fashion accessory.

But it appears that Scottish teenagers are i ncreasingly relying on each other to help them out financially – and are now an estimated £1.5million in debt to friends.

New research shows that teenagers are more likely to save money than previous generations but also owe around £19 each to each other.

According to Santander, a staggering one in ten owe an average of £50 to friends.

It comes despite parents shelling out around £17million a year in pocket money.

The Santander study for their new Mini account found that one in eight, or 12 per cent, of children believe owing people money is ‘normal’, raising concerns that Britain’s youngsters are becoming comfortable with debt.

It also showed that one in five currently owe someone money.

‘Pro-active saving’

But 94 per cent have already set aside money for the future, with over a quarter already saving for college and university.

Reza Attar-Zadeh, director of Retail Products for Santander UK, said: ‘Learning about money is one of life’s most important lessons. So while we are pleased to see that nine out of 10 children save money, one in five have also borrowed. Whilst we don’t want to foster a culture of debt, it is important that young people grow up with a good understanding of how money works.’

He added: ‘We want to see children and their parents taking a pro-active approach to saving.’

The study comes as parents give teenagers ever increasing control over their own piggy banks.

Three out of five parents say their children are more aware of saving money than they were, with 54 per cent describing their children as ‘exceptional’ bargain hunters.

Mothers generally undertake the task of teaching their children to be responsible, according to two-thirds of parents.

More than a third of families make sure their children earn what they buy, paying them to carry out household chores. Most Scottish mothers and fathers – 73 per cent – believe they owe it to the future of the country’s economy to teach their children the importance of being frugal.