Financial Literacy among 15-17 year-old teenagers - based on a market research survey among teenagers 15-17 years old in Denmark, Norway, Sweden and Finland

Financial Literacy among 15-17 year-olds List of contents 06/11/2018 Purpose of the Study Page 3 Methodology Page 4 Summary Page 6 Results Financial awareness and responsibility Page 11 Aspects of pocket money and savings Page 34 Teenagers as consumers Page 43 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Purpose of the study 06/11/2018 Danske Bank wants to investigate how teenagers’ knowledge about personal finances are and if they are interested in learning more about the subject. The following topics are covered: Income How much money do the 15 to 17 year olds have, and where do they get their money from? Consumption What do the 15-17 year olds spend money on? How often do they spend money? What would they spend an unexpected amount of money on? Financial literacy How do the teenagers assess their own financial literacy? Do they lack tools and knowledge to be in control of their personal finances? Who are their role models? Do they feel ready to be in charge of their personal finances? Do they have an understanding of financial terminology ? The study covers four countries within Danske Bank’s geographic focus area. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Methodology 06/11/2018 Interview period: Data has been collected in the period from 21.11.2012 until 14.12.2012 Target group: Teenagers from the age of 15 to 17 years Countries Sample Size (Not weighted) Sample Size (Weighted) Denmark 311 300 Sweden 309 300 Norway 306 300 Finland 314 300 Data Collection Data has been collected via the internet in YouGov’s own internet-based consumer panels in the four Nordic countries. YouGov has hosted and coordinated the data collection in all four countries. Data Weighting Data is weighted on quotas such that each of the four countries counts for one fourth of the aggregated data. Financial Literacy among 15-17 year-olds

How to read the report 06/11/2018 The survey is a repeat of the Financial Literacy survey conducted in 2011. Most of the areas covered in the 2011 survey are also covered in 2012 and some areas are new in 2012. All repeated areas will be compared with regards to development from 2011 to 2012. Please note that in 2011 only Denmark and Norway were included in the survey – in 2012 Sweden and Finland were added. The comparison from 2011 to 2012 will hence only concern Denmark and Norway respectively. Any significant changes/differences in the data are based on a 95%-confidence interval.

Summary

Financial Literacy among 15-17 year-olds Summary 06/11/2018 Financial awareness and responsibility 63% would like to know more about money and personal finances Significantly more so in both Denmark and Norway in 2012 55% are very interested in money and personal finances The above may stem from the fact that 51% feel that they would be able to live out their dreams if they knew more about money and personal finances On average the 15-17-year-olds assess that their parents are best to manage money and personal finances, second themselves and thirdly their friends In Denmark and Norway the averages have increased on all three aspects Almost half of the 15-17-year-olds feel ready to manage their own finances. However, almost half also feel not quite ready yet and 6% state that they are not ready at all Even though almost half of the teens feel ready to manage their own finances, 70% still feel that they – at least partly – need help and tools to manage own finances Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Summary 06/11/2018 Financial awareness and responsibility 89% state that it is their parents who advise them about money and personal finances School, Friends and Other family are the second, third and fourth most used for advice about finances. The bank is not used as much as source of advice – and even less so in Denmark and Norway in 2012 compared to 2011 86% of the 15-17-year-olds state that their parents have influence on their own handling of money and personal finances 56% state that their friends have influence on their handling of money and personal finances 66% of the teens do not know what APR is. Furthermore, 12% answer the question incorrectly 83% of the teens correctly state that less money would be available if the interest rate on a loan goes up Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Summary 06/11/2018 Aspects of pocket money On average most receive pocket money (that they have to work for) as well as extra money besides pocket money and/or have a free-time job. 73% receive less than 134 euro in pocket money per month 58% earn below 267 euro per month from their free-time job. The free-time job pays more than the pocket money from the parents. 84% receive less than 134 euro per month from other sources than pocket money, student grant and free-time jobs (in Denmark and Norway this level is lower in 2012 than in 2011) Teenagers as consumers 46% never spend more money than they actually have 50% of the teens borrow money from their friends (this share is higher in Norway than in the other three countries) 71% lend their friends money (again this share is higher in Norway than in the other three countries) Only 31% claim to have a complete overview of their monthly income and expenses The teenagers primarily borrow from their parents or other family when they have unforeseen expenses 65% would save up more if a savings scheme were available in the bank Almost everyone has a mobile phone or a smart phone 82% would prefer to transfer money through their online bank Financial Literacy among 15-17 year-olds

Results

Financial awareness and responsibility

To what extent do you agree or disagree with the following statements 63% would like to know more about money and personal finances. 55% are very interested in money and personal finances. Both results may stem from the fact that 51% feel that they would be able to live out their dreams if they know more about money and finances 06/11/2018 2012 To what extent do you agree or disagree with the following statements In 2012, significantly more in both Denmark and Norway agree to being very interested in money and personal finances and would like to know more about money and personal finances compared to 2011. Furthermore, more seem to be unsure of where to get knowledge of money and personal finances. Financial Literacy among 15-17 year-olds

To what extent do you agree or disagree with the following statements 58% would like to know more about money and personal finances. 49% are very interested in money and personal finances. Both results may stem from the fact that 51% feel that they would be able to live out their dreams if they know more about money and finances 06/11/2018 2011 To what extent do you agree or disagree with the following statements It is worth noticing that 27% are not sure where to obtain knowledge about money and personal finances – there are no country-specific differences. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds On average, the 15-17-year-olds give themselves a score of 6.82 with regards to how well they manage money and personal finances 06/11/2018 Since 2011 the average in both Denmark and Norway has increased. The Finnish teens rate themselves the lowest of the four countries – the Swedish teens rate themselves the highest. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds On average, the 15-17-year-olds give themselves a score of 6.49 with regards to how well they manage money and personal finances 06/11/2018 Financial Literacy among 15-17 year-olds

The teens rate their friends lower on average than themselves 06/11/2018 In Denmark the average is slightly higher in 2012 than in 2011 – no changes in Norway. The Finnish teens rate their friends the highest of the four countries – the Norwegians rate their friends the lowest. Financial Literacy among 15-17 year-olds

The teens rate their friends lower on average than themselves. 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds The teens rate their parents the highest – higher than themselves and higher than their friends. 06/11/2018 Compared to 2011 both the Danish and the Norwegian teens rate their parents higher in 2012. The Danish teens rate their parents the highest of the four countries – In Sweden they rate their parents the lowest. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds The teens rate their parents the highest – higher than themselves and higher than their friends. 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 46% of the 15-17-year-olds feel ready to manage their own finances. However, 43% also feel not quite ready yet and 6% state that they are not ready at all. 06/11/2018 More in 2012 in both Denmark and Norway feel ready to manage their own finances (significantly more in Norway). We see the same levels in both Sweden and Finland as in Norway. Denmark have a higher share of unsure teenagers than the other three countries. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds It is very important to notice that only 34% of the 15-17-year-olds feel ready to manage their own finances. 48% are not quite ready and 12% feel that they are not ready at all 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Even though 46% of the teens feel ready to manage their own finances, 70% still feel that they – at least partly – need help and tools to manage own finances. 06/11/2018 The picture in 2012 is the same in both Denmark and Norway as in 2011. Sweden and Finland show the same results as the two other countries. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Even though only 34% of the teens feel ready to manage their own finances, 47% do not feel that they need help and tools to manage their own finances. 06/11/2018 Please note that even though almost half of the teens feel no need for help and tools to manage own finances, a large share of the teens claim that they definitely need help and tools to manage their finances. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 89% of the 15-17-year-olds claim that it is their parents who advise them about money and personal finances. 06/11/2018 Denmark and Finland seem to be pulling the results in opposite directions: School, Friends and Other family are more important in Finland than in the other countries. On the other hand, the same three sources of advice seem the least important in Denmark compared to the other countries. Furthermore, the bank is less used as source of advice in Denmark in 2012 than in 2011. All other results are almost the same in both Denmark and Norway. Please note that School is a new alternative in 2012. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 90% of the 15-17-year-olds claim that it is their parents who advise them about money and personal finances. 06/11/2018 18% get advice from their bank or friends – however more in Norway receive advice slightly more often from their friends than from their bank – also other family seem important in Norway. In Denmark, however, parents and the bank are the most important sources of financial advice. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 86% of the 15-17-year-olds state that their parents have influence on their own handling of money and personal finances 06/11/2018 In 2012 slightly more in Denmark and Norway are not influenced by their parents with regards to handling own money and personal finances compared to 2011. Denmark is however still the country where most teens are definitely influenced by their parents. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 89% of the 15-17-year-olds state that their parents have influence on their own handling of money and personal finances 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 56% of the 15-17-year-olds state that their friends have influence on their own handling of money and personal finances 06/11/2018 In Denmark the share of teens who are influenced by their friends has decreased from 2011 to 2012 – the level in Norway is almost the same. In Denmark the share of teens being influenced by their friends is significantly lower than in Norway and Finland. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 57% of the 15-17-year-olds state that their friends have influence on their own handling of about money and personal finances 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 66% of the teens do not know what APR is. Furthermore, 12% answer the question incorrectly 06/11/2018 Sweden differs from the other countries with significantly more who don’t know the answer. Finland on one hand has the largest share who answer correctly and on the other hand Finland also has the largest share who answer incorrectly. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 61% of the teens do not know what APR is. Furthermore, 15% answer the question incorrectly 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 83% of the teens correctly claim that less money would be available if the interest rate on a loan goes up. 06/11/2018 Finland has the largest share who do not know what happens if the interest rate goes up. Denmark and Norway have the most incorrect answers. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 83% of the teens correctly claim that less money would be available if the interest rate on a loan goes up. 06/11/2018 Financial Literacy among 15-17 year-olds

Aspects of pocket money

Financial Literacy among 15-17 year-olds On average most receive pocket money (that they have to work for) as well as extra money besides pocket money or have a free-time job 06/11/2018 Particularly in Denmark and Norway the teenagers work for their pocket money. In Sweden student grants is the primary source of income. In Finland they both get money regularly besides the pocket money that they work for. There are no significant differences in Denmark and Norway from 2011 to 2012. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Source of income 06/11/2018 Denmark: A majority of the 15-17 year olds (59%) work in order to earn money. They do so either by working for pocket money and/or by taking a free-time job. 29% get pocket money they do not have to work for, and 24% get money from their parents besides pocket money when they require it. Norway: A total of 64% of the 15-17 year olds get pocket money from their parents, and 50% get pocket money they have to work for. 49% claim regularly to get money besides pocket money from their parents when they need it. This is especially the case for those who claim that they do not have an overview of their monthly income and expenses. Age has a large impact on the source of income. 73% of the 15 year olds get pocket money and 42% of the 17 year olds claim that they get money from a free time job. Financial Literacy among 15-17 year-olds

73% receive less than 134 euro 06/11/2018 In Norway and Sweden they receive more pocket money than in Finland and Denmark. There are no significant changes in Denmark and Norway from 2011 to 2012. Financial Literacy among 15-17 year-olds

72% receive less than 134 euro 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 58% earn below 267 euro per month from their free-time job. However, the free-time job still pays more than pocket money from the parents 06/11/2018 Since 2011 there has been an increase in the amount that the young earn in Norway. In Denmark the distribution of income from free-time job has become more even. Finland earns the least money per month of the four countries. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 62% earn less than 267 euro from their free-time job. However, the free-time job gives more money than pocket money received from parents 06/11/2018 Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 84%of the teens receive less than 134 euro from other sources than pocket money, student grants and free-time jobs 06/11/2018 Ín both Denmark and Norway the level of income from other sources has dropped somewhat since 2011 – most in Norway where more receive less than 134 euro in 2012 compared to 2011. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds 76% receive extra money from other sources than pocket money, student grant and free-time jobs 06/11/2018 Financial Literacy among 15-17 year-olds

Teenagers as consumers

Money spent 2012 – Denmark, money spent on a monthly basis 06/11/2018 Money spent on average: 1,300 DKK Maximum amount spent: 10,865 DKK Minimum amount spent: 20 DKK The 15-17 year olds spend on average 1,300 DKK every month – just below 2011. The money is primarily spent on clothes (21%), food (14%), and savings (10%). The share used on savings has increased slightly since 2011. Financial Literacy among 15-17 year-olds

Money spent 2011 - Denmark The 15-17 year olds spend on average 1,343 DKK every month. The money is primarily spent on clothes (22%), food (15%), and parties (10%). However, 10% of the monthly spending are put into savings. Money spent on a monthly basis: Money is spent on: Money spent on average: 1,343 DKK Maximum amount spent: 10,750 DKK Minimum amount spent: 50 DKK

Money spent 2012 – Norway, money spent on a monthly basis 06/11/2018 Money spent on average: 2,239 NOK Maximum amount spent: 20,550 NOK Minimum amount spent: 50 NOK The 15-17 year olds claim to spend on average 2,239 NOK every month – this is much higher than in 2011. The money is primarily spent on food (18%), clothes (16%), and savings (13%). The share used on savings has increased since 2011. Financial Literacy among 15-17 year-olds

Money spent 2011 - Norway The 15-17 year olds claim to spend on average 1,725 NOK every month. The money is primarily spent on food (22%), clothes (18%), and transportation (10%). 8% of the monthly spending are put into savings. Money spent on a monthly basis: Money is spent on: Money spent on average: 1,725 NOK Maximum amount spent: 15,353 NOK Minimum amount spent: 10 NOK

Money spent 2012 – Finland, money spent on a monthly basis 06/11/2018 Money spent on average: 250 euro Maximum amount spent: 18,206 euro Minimum amount spent: 4 euro The 15-17 year olds claim to spend on average 250 euro every month. The money is primarily spent on food (16%), clothes (15%), and transport (14%). Financial Literacy among 15-17 year-olds

Money spent 2012 – Sweden, money spent on a monthly basis 06/11/2018 Money spent on average: 1,244 SEK Maximum amount spent: 27,550 SEK Minimum amount spent: 40 SEK The 15-17 year olds claim to spend on average 1,244 SEK every month. The money is primarily spent on clothes (22%), food (20%), and savings (11%). Financial Literacy among 15-17 year-olds

46% never spend more money than they actually have 06/11/2018 In both Denmark and Norway the share of those who spend more than they have has increased since 2011 – the increase has been significant in Norway. Financial Literacy among 15-17 year-olds

56% never spend more than they actually have 06/11/2018 Financial Literacy among 15-17 year-olds

50% borrow money from their friends 06/11/2018 As in 2011 Norway has a significantly higher share than Denmark of teenagers borrowing money from their friends. The share in Norway is also significantly higher than in Finland and Sweden. Financial Literacy among 15-17 year-olds

54% borrow money from their friends 06/11/2018 In Norway significantly more borrow money from their friends than in Denmark. Financial Literacy among 15-17 year-olds

71% lend their friends money 06/11/2018 Of the Nordic countries, Norway has the highest share of teenagers lending their friends money (significantly higher than the other three countries). Denmark has the second highest share – significantly higher than Sweden and Finland. In both Denmark and Norway the shares of those lending their friends money has increased since 2011 – in Denmark the increase is significant. Financial Literacy among 15-17 year-olds

71% lend their friends money 06/11/2018 Significantly more in Norway lend their friends money compared to Denmark. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Only 31% claim to have a complete overview of their monthly income and expenses 06/11/2018 Since 2011 Denmark and Norway are closer to each other as less in 2012 in Denmark claim to have a complete overview. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds Only 33% claim to have complete overview of their monthly income and expenses 06/11/2018 Significantly more in Norway than in Denmark claim that they not always or never have a complete overview of their monthly income and expenses. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds The teenagers primarily borrow from their parents or other family when they have unforeseen expenses 06/11/2018 Since 2011 we see that Norway has significantly less who borrow from the parents or other family – and significantly more who spend their savings when they have unforeseen expenses. Sweden and Finland have the highest levels of borrowing from their parents and other family – they are also the countries with the lowest levels of free-time jobs. Financial Literacy among 15-17 year-olds

Financial Literacy among 15-17 year-olds The teenagers primarily borrow from the parents or other family if they have unforeseen expenses 06/11/2018 Financial Literacy among 15-17 year-olds

65% would save up more if there was a savings scheme 06/11/2018 The interest in the savings scheme is highest in Norway and lowest in Sweden and Finland. Financial Literacy among 15-17 year-olds

Almost everyone has a mobile phone or a smart phone 06/11/2018 Three out of four has a smart phone. In Norway we see the largest share of smart phone owners of the four countries. In Finland we see the largest share of mobile phones of the four countries. Financial Literacy among 15-17 year-olds

82% would prefer to transfer money through their online bank 06/11/2018 In Norway more would pay to transfer money via the mobile phone than in the other three countries. Financial Literacy among 15-17 year-olds

Financial Literacy among parents of 5-7 year-olds 06/11/2018 Contact details Financial Literacy among parents of 5-7 year-olds

Contact YouGov Andreas Ishøy Research consultant YouGov 06/11/2018 Andreas Ishøy Research consultant YouGov andreas.ishoy@yougov.com +45 2684 2262 Anne Dannisboe Iversen Research Team Manager YouGov anne.iversen@yougov.com +45 2516 1991 Dorthe Sortkjær Senior Project Manager YouGov dorthe.sortkjar@yougov.com +45 2682 2914 YouGov Denmark A/S Bryggervangen 55, 1 DK-2100 Copenhagen Tel: +45 7027 2224 www.yougov.dk YouGov