Young consumers: financial potential and preferred advisors

Abstract

Purpose – The aim of the research is to identify the social economic profile of young people aged 13-24. Taking into consideration the extensive interest of academic and professional research in the financial education of young people, it is important to firstly identify material assets and possibilities of young people, structure of their income and expenditures, attitude regarding significant financial decisions (planning, saving, borrowing), and possible advisors on financial issues. As teenagers are basically a part of their parents’ households and have limited financial resources and opportunities to influence decisions, the research focuses on young adults (19-24) who have just started independent living.

Design/methodology/approach – Young consumers, aged 15 to 24 (n=1608) were surveyed and reported their disposable income and employment status. Outcome variables were attitudes toward personal finance planning, saving, and the possible advisors on financial issues.

Research limitations/implications – The research was not intended to test the level of young people’s financial competence through specific tasks or tests.

Findings – The result of the research shows the current financial perspectives of the young people of Latvia, their money management habits as well as identifying those whom youth consider trustworthy to consult on financial issues. The research identified the potential for educational establishments to more significantly enhance young people’s financial competence.

Practical implications – The results of this study have important implications for better understanding young adults. By identifying the specific areas where financial product awareness may be lacking, the paper may assist educators, regulators and financial institutions to design financial planning courses in helping youths to achieve greater financial freedom and be better equipped for future live.

Originality/value – Few attempts have been made to obtain a composite picture of Latvian consumer research on teens and young adults. This question is of particular importance in times when the discourse of youth's role in consumer society is changing.