Printer Friendly Page
Citigroup Inc. (NYSE: C)
November 09, 2006
Citibank Survey Reveals How Teenagers Are Saving & Spending Today in Korea
Seoul – Citibank today revealed findings from a survey that analyzed the attitudes of teenagers (aged 15-18) on money management and personal finance matters. The independent survey, “Teens and Money – Earn and Burn?” was conducted in Taiwan, Korea and Hong Kong in October 2006 and drew 900 respondents (300 per market).
Survey highlights across the three markets include:
- Teenagers have a difficult time deciding on a budget and sticking with it. Over half of the Korean respondents admit that they do not plan budgets because “it is not their style.”
- One out of three claims that their current spending habits are a source of conflict with their parents.
- Two in five teenagers or approximately 41% report that their allowance is tied to performance at school or specific tasks around the home.
- Teenagers view money as a means of asserting greater independence. Almost half of the teenage respondents show some concern about personal finances as they are unsure that their parents would help them if faced with financial difficulties.
- More than six out of ten respondents across the three markets wish they knew more about managing money (64% in both Taiwan and Korea, and 61% in Hong Kong).
Mr. Ha added, “Young adults are experiencing unprecedented purchasing power and consumerism, and an increasingly sophisticated financial market place, so they need to be even more financially literate than previous generations.”
In terms of weekly allowances, the surveyed teenagers and young adults generally receive the following amounts on a weekly basis:
| Hong Kong – | HKD $400 | or US$51.07 |
| Korea – | Korea Won 19,800 | or US$20.95 |
| Taiwan – | Taiwan NT$ 900 | or US$26.72 |
Across the three markets, parents are the main source of weekly spending money for 82% of the teenagers. Only a few respondents cite part-time employment as their primary source of finances. Approximately 18% of the Hong Kong teenagers are more likely than their Taiwanese or Korean counterparts (6% and 5% respectively) to cite part-time employment as their key source of weekly spending money.
The survey shows that the concept of “pocket money for performance” is evident in all three countries surveyed. Two in five teenagers or roughly 41% report that their allowance is tied to performance at school or specific tasks around the home (44% in Hong Kong, 41% in Korea and 38% in Taiwan.)
The respondents’ allowances are spent mainly on eating out/dining at fast food outlets and snacks (86%), going out or hanging out with friends (68%) and paying for clothing or shoes (67%). At 48% levels, Taiwanese teenagers spend considerably more on eating out (compared to 32% in Hong Kong and 27% in Korea.)
Across the three markets, approximately one-third (31%) admits that their current spending habits are a source of conflict with their parents. Korean teenagers (39%) are notably more disposed to feel this way, vis-à-vis their Taiwan (27%) and Hong Kong (27%) peers.
In Korea, a majority of teenagers (56%) indicate that they do not save any money during the average week. Teenagers in Hong Kong and Taiwan appear much better at saving – in both countries, approximately four-in-five declare that they saved some money during the week.
What compels teenagers to learn more about financial matters? The survey shows that this was often driven by the desire “to buy what I want, when I want it.”
Teenagers today appear to have a difficult time deciding on a budget and sticking with it. Over half of the Korean respondents said that they did not plan budgets because “it is not their style”.
The overall results suggest that teenagers view money as a means of asserting greater independence. Approximately half of the respondent base worries about their personal finance. They are not sure their parents would help them out, if faced with financial difficulties. This is most strongly indicated by Taiwan and Korea teenagers (56% and 52% respectively vs. 35% in Hong Kong).
The overall results show a strong desire on the part of 15-18 year-old teenagers to learn more about money management. More than six out of ten respondents across the three markets agree with the following statement, “I wish I knew more about how to manage my money”. (64% in both Taiwan and Korea, and 61% in Hong Kong)
About 40% of the Taiwan teenagers admit that they want to learn more about personal finance so they could learn to save for a rainy day, and 28% of Hong Kong respondents provide the same feedback. Only 9% of Korean teenagers want to better to understand money management to save for a rainy day.
There remain significant opportunities for schools to help teenagers learn more about finances. In the three markets, only 26% perceive that they are learning enough about personal finances in school.
Although teenagers could generally discuss other personal matters with friends, the survey respondents disclose that they are uncomfortable talking specifically about money with their friends. This sensitivity is particularly strong among Taiwanese teenagers (43% vs. 37% in Hong Kong and 32% in Korea).
Across the three markets, the surveyed teenagers reveal that their parents or guardians have been the main sources of information on money management and personal finance matters. Relatives as sources of information are a distant second and interestingly, on money matters, the Internet has greater influence than their own teenage friends and peers.
Major purchases, job interests, the importance of saving money, and spending habits tend to be the main topics of discussion between the respondents and their parents.
The “Teens and Money – Earn and Burn?” survey shows that for a majority of the respondents, topics such as paying for one’s education, setting financial goals, household budgeting and the proper use of credit are subjects that are rarely discussed within the families.
# # #
“Teens and Money – Earn and Burn?” Survey
The “Teens and Money – Earn and Burn?” Survey was conducted by cXc (Consultants Exchange), a global consulting firm headquartered in Sydney, Australia. Conducted in Taiwan, Korea and Hong Kong with a total of 900 respondents (300 per market) aged between 15-18. The online interviews took place in October 2006 and covered a range of topics related to money management and personal finance. At the 3-country level, the results of a sample size of N=900 are said to be accurate to within 3.3%, at the 95% percent confidence level. The project’s lead research consultant was Justin Lewis.
Citigroup
Citigroup, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex. Additional information may be found at www.citigroup.com.
Citigroup Financial Education Program
Based on the belief that knowledge is your greatest asset, the Citigroup Financial Education Program is a global, company-wide effort to identify, support and implement initiatives that help give individuals, families and communities the tools needed to make sound financial decisions. Citigroup's 10-year, $200 million global commitment is focused in three areas: Personal, Small Business and Institutional Financial Education. Additional information about Citigroup's Financial Education Program, including Citigroup Foundation guidelines, links and resources, and the Citigroup Financial Education Program Curriculum and Facilitator's Guide, may be found at: http://financialeducation.citigroup.com.