Mind the (£10) Gap
The ten pound note has seen the British public through one hundred and seventy four years1 of spending ? but its value today is widely debated across the age groups.
New research from engage Mutual has unveiled a ?generation gap? in what?s seen to be the worth of a tenner, with over 50s grandparents being the sticklers for spending.
At a time when Britain is experiencing a growing £27billion* savings gap and young people are faced with the prospect of having to pay ten times their salary2 for a home, their parents? generation are begrudging £10 for a bottle of wine.
As part of its ongoing research into different generations? attitudes to finances, engage Mutual surveyed a GB representative sample of over 2,000 people asking them what items they would consider to be a rip off or too expensive at £10.
Key Findings
More than two in three grandparents (65%) think parting with their ten pounds for a bottle of wine is a rip off when almost one in two of under 25s with no children (45%) wouldn?t bat an eyelid.
Although older people (grandparents over 50) find spending ten pounds on things like cinema tickets (67%) and knickers (81%) excessive, they are willing to pay £10 more freely for items such as baby outfits (only 14% of this age group think it is a rip off for £10), local train tickets (48%) and a joint of meat (27%), whereas younger generations consider these to be of a rip off (18%, 69% and 40% respectively).
Nearly one in two grandparents over 50 years old (45%) classify T-shirts as a rip off for £10 but the more fashion conscious under 25s are in disagreement with only 13 per cent ranking it as too expensive.
1 www.bignell.co.uk accessed 26th June 2007
2 National Housing & Planning Advice Unit/ The Times, 7 June 2007
Karl Elliott, 3GB spokesperson for engage Mutual said:“Inflation and decimalisation have caused considerable changes to the way money is perceived across generations. These varying perceptions of money may have a considerable impact on family finances, particularly when it comes to different generations? attitudes to spending and saving. If just 10 per cent of the population put aside just £10 each month, then the British population would be squirreling away £720million each year into savings.”
“It is important that all family members save as much as possible for the future. engage are committed to providing simple financial savings for all family members allowing them to save what they can afford to on a regular basis, helping them to achieve a secure financial future.”
Generational differences:% who think £10 is a rip off
| Under 25(no children) | Parent | Grandparents | |
|---|---|---|---|
| Bottle of wine | 45% | 56% | 65% |
| Round of drinks | 14% | 17% | 24% |
| Bunch of flowers | 42% | 38% | 37% |
| Takeaway/pizza | 39% | 39% | 58% |
| Pair of knickers | 68% | 73% | 81% |
| Joint of meat | 40% | 34% | 27% |
Table of price comparison over the generations:
| 1955 | 1974 | 1990 | 2006 | |
|---|---|---|---|---|
| Litre of petrol | 5p; | 11.4p | 45p | 85p |
| Pint of Beer | 9.5p | 22.1p | £1.09 | £2.55 |
| 20 Cigarettes | 17.9p | 32p | £1.64 | £4.83 |
| White Sliced Bread | 3.1p | 13.9p | 50p | 85p |
| Pint of Milk | 2.9p | 4.5p | 31p | 36p |
Source: Daily Express 26th January 2007
engage Mutual Assurance can be contacted on 0800 169 4321 or by visiting www.engagemutual.com
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
Notes to editor:
* according to ABI figures 2002 www.abi.org.uk
1. This research was undertaken by YouGov on behalf of engage Mutual Assurance. The survey was conducted between 30 April ? 2 May 2007 across a representative GB sample of 2,271
2.If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : http://www.engagemutual.com engage Mutual Assurance - meeting the changing needs of today?s modern families
3. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it?s wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
4. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores.
5. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
6. 6. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it?s wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
7. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited?s FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 123