Presented by Susanna Chiu Date 22 June 2005

Presented by: Susanna Chiu Date: 22 June 2005 Teenagers and Money (a survey from the “Rich Kid, Poor Kid” programme)

Table of Contents Section 1: Context of the study 1. 1 Objectives 4 1. 2 Methodology 5 1. 3 Sample Profile 6 -7 Section 2: Executive Summary 8 -10 Section 3: Attitudes to wealth and money summary 12 -13 3. 1 General attitudes charts 14 -18 3. 2 Expectations of future prosperity charts 19 -21 3. 3 HK$10, 000 windfall charts 22 -24 3. 4 Sources of financial advice charts 25 -27 Section 4: Expectations of wealth and income summary 29 -30 4. 1 Amount of money needed to be wealthy charts 31 -32 4. 2 Age when believe will be wealthy charts 33 -34 4. 3 Monthly salary needed to be comfortable charts 35 -36 4. 4 Age anticipate earning comfortable salary charts 37 -38 4. 6 Hours willing to work to earn comfortable salary charts 39 -40 Section 5: Spending and saving patterns summary 42 -43 5. 1 Sources of money charts 44 -46 5. 2 Mean monthly income from all sources charts 47 -50 5. 3 Proportion of income from each source charts 51 -53 5. 4 Spending and saving patterns charts 54 -59 5. 5 Summary of income and expenditure charts 60 5. 6 Extrapolations to HK economy charts 61 Section 6: Credit cards summary 6. 1 Credit card ownership charts Section 7: Tertiary education and employment summary 63 64 66 7. 1 Proportion wanting to go to university 67 7. 2 Preferred Occupation 68 -70 Appendix: Questionnaire 72 -74 2

Section 1: Context of study 3

1. 1 Objectives In May 2005, the Hong Kong Institute of Certified Public Accountants commissioned Market Insights Group to undertake a study of Hong Kong youth’s attitudes to money. The objectives of the study were: – To obtain data about 15 to 18 years olds and their money - where they get their money and what they do with it, where they obtain advice, how they use credit cards, how much do they spend versus save. – To understand attitudes to money, how important it is, their expectations on future earnings, how much money they believe they need to be wealthy. – To determine the importance of money relative to other aspects of life. For example, how important is money relative to such things as having time for leisure and personal pursuits, family, what is the meaning of money, etc. This presentation provides charted results of the research study. 4

1. 2 Methodology • A total of n=400 surveys were undertaken in Hong Kong between May 25 and June 5. The maximum sampling error associated with this sample size is + 4. 9% at the 95% confidence interval. That is, our sample can be taken as a true estimate of population with a margin of error of + / - 4. 9%. • Interviews were undertaken face to face amongst a sample of 15 to 18 year old Hong Kong Chinese youths. The sample was stratified so that 50% of respondents were aged 15 to 16 years (n=200) and 50% were aged 17 – 18 years (n=200). Respondents were advised that the study was being undertaken on behalf of the Institute. Half were male, half female. • The sample data was post-weighted to Hong Kong Census and Statistics Department age and sex statistics 2004 provisional data to be representative of the population of 15 to 18 year olds in Hong Kong. • Professional Market Insights Group interviewers intercepted respondents at various locations throughout Hong Kong Island, Kowloon and the New Territories and requested their participation in the survey, which was then undertaken on the spot. The survey duration varied between 8 and 10 minutes. • Data was collected across the following locations: – Hong Kong Island (n= 80) Causeway Bay, Wanchai, Aberdeen, – Kowloon (n= 120), Mong Kok, Kwun Tong, Tsim Sha Tsui, Wong Tai Sin, – New Territories (n=200), Shatin, Tao Po, Sheung Shui, Tsuen Wan, Tuen Mun, Yuen Long, Tseung Kwan O. 5

1. 3 Sample profile – age and gender Unweighted Weighted 6

1. 4 Sample profile – Family situation 7

Section 2: Executive summary 8

2. 0 Summary of key findings in the survey • At this stage of their lives, 15 – 18 year olds are happy to spend time doing what they want to do rather than earning money. However, most wish they were better at saving money, particularly females and the majority agree money is important to them right now. Whilst they feel it is important for young people to work, relatively few (18%) are actually working right now. More than three quarters agree it is okay to rely on their parents for money at their age. • Looking to the future, most 15 – 18 years olds want to attend university (89%) and their most likely desired profession on entering the workforce is in ‘tourism and hospitality’ (15%), particularly for females. • Around half say they enjoy saving money more than spending it, and indeed, most (74%) are putting away some money each month. On average, 24% of mean income is being saved, with the rest spent mostly on entertainment, clothes and goods. There is practically no investment in the stock market amongst people this age in Hong Kong. Most of the average $325 saved each month is simply for a rainy day or saving for a specific item. • Only half feel they are good at managing their money, and a similar proportion tend to spend money without thinking about their finances. This perhaps points towards an opportunity for enhanced education and financial advice. They mostly turn to parents for advice, although older teens are more willing to ask their friends. Relatively few (18%) seek financial counsel from their school. 9

2. 0 Summary of key findings in the survey • The mean income of 15 - 18 year olds in Hong Kong is $1, 356, with the majority (95%) relying on parents for their cash. Parents, on average, give their teens an allowance of $924 each month – males receive more on average than females. The 18% of respondents working part-time or full-time have an additional $2, 704 to spend each month. The bad news for parents, despite their generosity, is that only 1% said they would give a $10 k windfall to their parents in full (60% said they would give some to their parents). Encouragingly, almost three quarters of teens (73%) said they would save at least some for the future, although the same amount said they would also spend some on entertainment and having a good time. Less than one in five said they would give any of the money to charity. • Hong Kong teens are generally optimistic. Most teens (58%) believe Hong Kong will have a more prosperous future, although around 1 in 10 feel it will be less prosperous. Females tend to be more optimistic than males. The average amount considered necessary to be considered wealthy is $10. 9 million and four in five believe they will grow wealthy with around a third believing they will be wealthy by the age of 36. This is significant given that around three quarters agree it is important to earn a lot of money to be happy in life. • More pragmatically, the average monthly salary that teens think is needed to be comfortable is just under $20, 000 and almost all believe they will attain that income, by the time they are 27 years old. Consistent with Hong Kong's reputation as a hard working city, the next generation of workers is willing to work 48 hours a week on average just to be comfortable. 10

Section 3: Attitudes to wealth and money 11

3. 0 Summary of attitudes to money (1) • • • Most 15 – 18 year olds believe money is important to them right now (82% agree, 21% strongly, 18% disagree). Just under three quarters (73%) also agree that it is important to earn a lot of money to be happy in life). This life-view is consistent with optimism about their future wealth – with 75% believing they will be wealthy when they are older. A third ‘strongly agree’ that they wish they were better at saving money and 90% in total indicate they wish they were better at saving money. This sentiment is strongest amongst females (94% agree). However, this desire conflicts with a belief that they’d rather spend time doing things they want rather even if it means having less money (85% agreed with this, 25% strongly). Such conflicts are also evident in how money is obtained. Whilst 82% believe it is important for young people to work (29% strongly), a similar proportion, 79% also believe it is okay to rely on parents for money at their age. Teens tend to fall into two camps – spenders and savers. Savers, who agree they enjoy saving money more than spending it (47%), tend to be older (17 – 18 years) are more likely to believe they are good at managing their money and that it is important for young people to work. Those who enjoy spending more than saving on the other hand, agree they tend to spend money without thinking about it and spend time doing the things they want, even if it means less money. As teens enter their matriculation year (17 – 18 years old), their attitudes change – they agree more strongly that it is important for young people to work, are more likely to agree they are better at managing their money, and are less likely to agree they spend money without thinking of their finances. 17 – 18 year olds are less agree that relying on parents for money is okay compared to 15 – 16 year olds. 12

3. 0 Summary of attitudes to money (2) • • The majority of 15 – 18 year olds are optimistic about Hong Kong’s future prosperity. Fortynine percent believe that Hong Kong will be somewhat more prosperous in the future and 10% believe Hong Kong will be much more prosperous in the future (net agree 59%). Those who are pessimistic about Hong Kong’s future prosperity (14%) are more likely to be male (19%) and have lower average monthly incomes ($1, 062 versus $1, 485 amongst those who are optimistic). Respondents were asked what they would do with a $10, 000 windfall. Relatively few (13%) would spend it on any one thing only (5% only said they would save all of it for the future and 4% said they would invest it all in the stock market). Around three quarters would spend at least some on entertainment / having a good time (72%). Three out of five (60%) would give some to the parents, but only 1% said they would give it all to their parents. Three in five also said they would spend some on an item they always wanted. Relatively few (33%) said they would spend some on a holiday and even less (20%) said they would donate some or all of the money to charity. Older teens (17 – 18 year olds) were more likely to say they would save some of the money for the future (84%) than those aged 15 – 16 years (72% would save at least some of it). Most youths get their financial advice from parents (75%) and around a third (36%) also get advice from their friends. Relatively few seek advice from a source at school (18%). Older teens (17 – 18 years) are more likely to obtain advice from their friends (44%) than are teens aged 15 – 16 years (28%). 13

3. 1. 1 General attitudes to money and wealth (1) Q 1 a. First of all, I would like to find out your opinions about money, life and wellbeing? I will read out a statement and I would like you to tell me if you agree or disagree with it. First, do you agree or disagree with that…READ OUT STATEMENT [ROTATE LIST]. Is that strongly agree/disagree or somewhat agree/disagree? Base: All respondents (n=400) 14

3. 1. 1 General attitudes to money and wealth (2) Q 1 a. First of all, I would like to find out your opinions about money, life and wellbeing? I will read out a statement and I would like you to tell me if you agree or disagree with it. First, do you agree or disagree with that…READ OUT STATEMENT [ROTATE LIST]. Is that strongly agree/disagree or somewhat agree/disagree? Base: All respondents (n=400) 15

3. 1. 2 General attitudes to money Net agree / disagree by statement Net Disagree Net Agree I wish I was better at saving money 10. 3% 89. 7% I’d rather spend time doing things I want, rather than working even if I have less money 15. 5% 84. 5% It is important for young people to work 18. 0% 82. 0% Money is important to me right now 18. 4% 81. 6% Its okay to rely on your parents for money at my age 21. 7% 78. 3% I think I will be wealthy when I am older 21. 3% 75. 4% It is important to earn a lot of money to be happy in life 27. 5% 72. 5% I enjoy saving my money more than spending it 46. 6% 53. 4% I am good at managing my money 50. 5% 49. 5% I tend to spend money without thinking too much about my finances 53. 4% 46. 6% Statement Q 1 a. First of all, I would like to find out your opinions about money, life and wellbeing? I will read out a statement and I would like you to tell me if you agree or disagree with it. First, do you agree or disagree with that…READ OUT STATEMENT [ROTATE LIST]. Is that strongly agree/disagree or somewhat agree/disagree? Base: All respondents (n=400) 16

3. 1. 3 Net agreement (males vs females) Sig. different @ 95% confidence interval Q 1 a. First of all, I would like to find out your opinions about money, life and wellbeing? I will read out a statement and I would like you to tell me if you agree or disagree with it. First, do you agree or disagree with that…READ OUT STATEMENT [ROTATE LIST]. Is that strongly agree/disagree or somewhat agree/disagree? Base: All respondents (n=400) 17

3. 1. 4 Net agreement (by age) Sig. different @ 95% confidence interval Q 1 a. First of all, I would like to find out your opinions about money, life and wellbeing? I will read out a statement and I would like you to tell me if you agree or disagree with it. First, do you agree or disagree with that…READ OUT STATEMENT [ROTATE LIST]. Is that strongly agree/disagree or somewhat agree/disagree? Base: All respondents (n=400) 18

3. 2. 1 Attitudes towards Hong Kong’s future prosperity Total Base: All respondents (n=400) Net less prosperous Net more prosperous 14% 58% Q 2. Which of the following best describes how you feel about Hong Kong’s future prosperity for people who will live and work in Hong Kong? Hong Kong will be much less prosperous in the future Hong Kong will be somewhat less prosperous in the future Hong Kong will have the same level of future prosperity as today Hong Kong will somewhat more prosperous in the future Hong Kong will be much more prosperous in the future than today Don’t know / Refused 19

3. 2. 2 Attitudes towards Hong Kong’s future prosperity (by gender) Net less prosperous Net more prosperous Male 19% 53% Female 8% 64% HK$1, 062 HK$1, 485 Average income Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 2. Which of the following best describes how you feel about Hong Kong’s future prosperity for people who will live and work in Hong Kong? Hong Kong will be much less prosperous in the future Hong Kong will be somewhat less prosperous in the future Hong Kong will have the same level of future prosperity as today Hong Kong will somewhat more prosperous in the future Hong Kong will be much more prosperous in the future than today Don’t know / Refused 20

3. 2. 3 Attitudes towards Hong Kong’s future prosperity (by age) Net less prosperous Net more prosperous 15 – 16 years 14% 58% 17 – 18 years 13% 59% Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 2. Which of the following best describes how you feel about Hong Kong’s future prosperity for people who will live and work in Hong Kong? Hong Kong will be much less prosperous in the future Hong Kong will be somewhat less prosperous in the future Hong Kong will have the same level of future prosperity as today Hong Kong will somewhat more prosperous in the future Hong Kong will be much more prosperous in the future than today Don’t know / Refused 21

3. 3. 1 What they’d do with a HK$10, 000 windfall Base: All respondents (n=400) Multiple response Q 10 a. If someone gave you HK$10, 000 to spend as you liked on anything, which of the following things would you do with the money. READ OUT, MULTIPLE RESPONSE 22

3. 3. 2 What they’d do with a HK$10, 000 windfall (males vs females) Base: All respondents (n=400) Sig. different @ 95% confidence interval Multiple response Q 10 a. If someone gave you HK$10, 000 to spend as you liked on anything, which of the following things would you do with the money. READ OUT, MULTIPLE RESPONSE 23

3. 3. 3 What they’d do with a HK$10, 000 windfall (by age) Base: All respondents (n=400) Sig. different @ 95% confidence interval Multiple response Q 10 a. If someone gave you HK$10, 000 to spend as you liked on anything, which of the following things would you do with the money. READ OUT, MULTIPLE RESPONSE 24

3. 4. 1 Sources of financial advice Multiple response Q 3. Where do you get advice about money and how to manage it? DO NOT READ OUT Base: All respondents (n=400) 25

3. 4. 2 Sources of financial advice (by gender) Multiple response Sig. different @ 95% confidence interval Q 3. Where do you get advice about money and how to manage it? DO NOT READ OUT Base: All respondents (n=400) 26

3. 4. 3 Sources of financial advice (by age) Multiple response Sig. different @ 95% confidence interval Q 3. Where do you get advice about money and how to manage it? DO NOT READ OUT Base: All respondents (n=400) 27

Section 4: Expectations of Wealth and income 28

4. 0 Summary of expectations of wealth and income (1) • • Overall, there is great variation in the perceived amount that people need to be wealthy, with the amount ranging from ten thousand to 10 billion Hong Kong dollars. On average, 15 – 18 year olds believe that $10. 85 million is needed to be considered rich, although the most commonly cited amount is much lower, $1, 000. Forty one percent believe more than this amount is required and 14% said at least $10 million is the requisite figure. – Males believe more is required than females ($12. 8 million vs. $8. 7 million) – 17 -18 year olds believe more is required than 15 -16 year olds ($12. 6 million vs. $9. 0 million) Consistent with their overall level of optimism, 86% of the sample believed they will achieve ‘wealth’. The mean age they believe wealthy will be obtained is 36 years. Two thirds believe they will be wealthy (according to their own definition) by the time they are 44 years. An even more optimistic minority of 14% believe they will become wealthy before they turn 25 years of age. – Males believe, an average, that it will take them longer to become wealthy than females (37 years vs. 34 years). This is consistent with their view that more money is needed to be wealthy. – Similarly, older respondents, set their expectations back a little compared to 15 – 16 year olds, believing on average that they will 38 years old when they become wealthy, vs. 34 years for the younger group. It is interesting that an additional two years of life results in an additional 4 years of perceived time needed to become wealthy. One presumes that this resetting of expectations increases with age! 29

4. 0 Summary of expectations of wealth and income (2) • • • Respondents were also asked what monthly salary they thought would be necessary to be considered comfortable. It is apparent that teens are both more consistent in their views and more pragmatic when it comes to earning a monthly salary compared to their views on achieving wealth. The average salary thought needed to be comfortable was $19, 200 a month. The most commonly cited figure was $20, 000 a month. This compares to the current Hong Kong average monthly earnings from the 2001 census of $18, 705. – Older respondents (aged 17 – 18 years) set their sights higher than 15 – 16 year olds. The mean salary to be comfortable amongst the former group was $22, 100 compared to $19, 200 amongst the latter. – Males had slightly higher perceptions of what constitutes a comfortable sales than females, although this result was not a statistically significant difference ($21, 900 vs. $19, 200). Nearly all respondents believed that they would earn a comfortable salary (98%). Around half (51%) believe they will earn this salary by the age of 25 years and the mean age that teens think they will earn a ‘comfortable’ salary is 27 years. The most commonly cited age was 25 years. Respondents were also asked to indicate how many hours they would be willing to work to earn a ‘comfortable’ wage. Consistent with Hong Kong’s renowned work ethic, 71% percent of respondents were willing to work at least 40 hours, and the mean number of hours was 48. One quarter said they would work more than 50 hours to earn a ‘comfortable salary’. These views were consistent amongst males and females and in both age categories. 30

4. 1. 1 Amount of money needed to be wealthy Mean Median Mode * Note 3 outlying cases removed in calculation of mean (exceeded HK$500, 000). HK$10. 85 million* HK$1. 5 million HK$1. 0 million Q 4 a. How much money do you think you would need to be considered rich? IF UNSURE, ASK FOR BEST ESTIMATE [ ] enter best estimate (HK$) 1 Don’t know Refused Base: All respondents (n=400) 97 99 31

4. 1. 2 Amount of money needed to be wealthy (by gender and age) Group Mean Median Mode Males HK$12. 8 Million HK$800 k HK$1 million Females HK$8. 7 million HK$1 million 15 - 16 years HK$9. 0 Million HK$500 k HK$1 million 17 - 18 years HK$12. 6 million HK$1 million Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 4 a. How much money do you think you would need to be considered rich? IF UNSURE, ASK FOR BEST ESTIMATE [ ] enter best estimate (HK$) 1 Don’t know Refused Base: All respondents (n=400) 97 99 32

4. 2. 1 Age think will achieve wealthy status Mean Median Mode 36 years 35 years 30 years Base: All respondents (n=400) Q 4 b. Do you think you will be that rich one day? IF YES, how old do you think you will be when you are that wealthy? IF UNSURE, ASK FOR BEST ESTIMATE. [ ] years of age 1 Don’t know 97 Won’t ever be that wealthy 98 Refused 99 33

4. 2. 2 Age think will achieve wealthy status (by gender and age) Group Mean Median Mode Males 37 years 34 years 30 years Females 34 years 32 years 30 years 15 - 16 years 34 years 30 years 17 - 18 years 33 years 30 years Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 4 b. Do you think you will be that rich one day? IF YES, how old do you think you will be when you are that wealthy? IF UNSURE, ASK FOR BEST ESTIMATE. [ ] years of age 1 Don’t know 97 Won’t ever be that wealthy 98 Refused 99 34

4. 3. 1 Monthly salary needed to be comfortable Mean HK$19. 2 k per month Median HK$20 k per month Mode HK$20 k per month Base: All respondents (n=400) Q 5 a. What monthly salary do you think would make you comfortable? IF UNSURE, ASK FOR BEST ESTIMATE [ ] enter best estimate (HK$) 1 Don’t know 97 Refused 99 Base: All respondents (n=400) 35

4. 3. 2 Monthly salary needed to be comfortable (by gender and age) Group Mean Median Mode Males HK$21. 9 k HK$20. 0 k Females HK$19. 2 k HK$19. 0 k HK$20. 0 k 15 - 16 years HK$19. 2 k HK$17. 0 k HK$20. 0 k 17 - 18 years HK$22. 1 k HK$19. 0 k HK$20. 0 k Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 5 a. What monthly salary do you think would make you comfortable? IF UNSURE, ASK FOR BEST ESTIMATE [ ] enter best estimate (HK$) 1 Don’t know 97 Refused 99 Base: All respondents (n=400) 36

4. 4. 1 Age expect will earn comfortable salary Mean Median Mode 26. 7 years 25. 0 years 25 years Base: All respondents (n=400) Q 4 b. Do you think you will earn that salary one day? IF YES, how old do you think you will be when you earn that salary? IF UNSURE, ASK FOR BEST ESTIMATE. [ ] years of age 1 Don’t know 97 Won’t ever be that wealthy 98 Refused 99 37

4. 4. 2 Age expect will earn comfortable salary (by gender and age) Group Mean Median Mode Males 27 years 26 years 25 years Females 26 years 25 years 15 - 16 years 25 years 17 - 18 years 27 years 26 years 25 years Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 4 b. Do you think you will earn that salary one day? IF YES, how old do you think you will be when you earn that salary? IF UNSURE, ASK FOR BEST ESTIMATE. [ ] years of age 1 Don’t know 97 Won’t ever be that wealthy 98 Refused 99 38

4. 5. 1 Hours willing to work to earn a comfortable salary Base: believe will earn comfortable salary (n=392) * Cumulative percentage is proportion willing to work at least that minimum of hour range to earn comfortable salary Mean Median Mode 48 hours Q 5 c. How many hours a week would you be willing to work to earn this much money? IF NECESSARY, ASK FOR BEST ESTIMATE [ ] hours 1 Don’t know 97 Refused 99 39

4. 5. 2 Hours willing to work to earn salary (by gender and age) Group Mean Median Mode Males 48 hours Females 47 hours 48 hours 15 - 16 years 47 hours 48 hours 17 - 18 years 49 hours 48 hours Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 5 c. How many hours a week would you be willing to work to earn this much money? IF NECESSARY, ASK FOR BEST ESTIMATE [ ] hours 1 Don’t know 97 Refused 99 40

Section 5: Spending and saving patterns 41

5. 0. 1 Summary of income and income sources • Almost all respondents received money from their parents or other family members (95%). Eighteen percent are working, either part time (14%) or full-time (3%). Seven percent cited drawing on ‘savings’ as a source of money. Females are more likely than males to obtain money from working (23% vs 13% for males). As would be expected, 17 – 18 year olds are more likely to receive money from working part-time (24%) or full-time than 15 – 16 year olds (5% and 0% respectively). Ninety-nine percent of 15 – 16 year olds receive money from their parents, versus 89% of 17 – 18 year olds. • The mean monthly income from all sources was $1, 359. The most commonly cited monthly income was $1, 000. 17 – 18 year olds have more monthly income than 15 – 16 year olds ($1, 742 vs. $977). Although males and females have similar mean monthly incomes ($1, 323 vs $1, 396), males receive more on average from their parents than females ($979 vs. $867). Parents also give higher allowances on average to dependents aged 17 – 18 years ($1, 014) than those aged 15 – 16 years $842. • Across the board, 88% of income amongst this age group is sourced from parents and 12% from employment. The proportion of income derived from work is higher amongst 17 – 18 year olds (22%) than 15 – 16 year olds (4%). 42

5. 0. 2 Summary of spending and saving patterns • Three quarters (74%) of 15 – 18 year olds save some of their money each month. On average, the proportion saved is 24% of total income or $325. The proportion saving more than 50% of their income is only 24% and around a third (32%) save less than 20% of their income. • The savings patterns are very consistent by gender and age. Given that income rises substantially with age, the conclusion is that spending and saving both rise proportionally. Put another way, additional income does is not automatically saved. • • Around half of income (49% or $663) is spent on entertainment/having a good time and only 7% ($95) on purchase of goods. Only 1% of income on average is spent on investments (stocks and shares), reflecting the small number who direct money this way at all. There are some differences in spending by gender. Males spend comparatively more of their income on purchase of goods than females (10% vs 4%). By comparison, females spend around twice as much as males on clothes (23% of their income compared to 12% amongst males). • Spending patterns do not differ appreciably by age. • Of the 24% saved on average, most appears to be habitual - 47% of savings is simply for ‘a rainy day/nothing in particular’. The next greatest proportion is reserved for purchase of a specific thing (31%). Only 12% of average savings is being directed towards education, 10% towards travel. Motivations for savings are consistent between males and females 43

5. 1. 1 Sources of money 14. 4% + 3. 3% ~ Net 18% work Base: All respondents (n=400) Multiple response Q 6. Where do you get your money now? Base: All respondents (n=400) 44

5. 1. 2 Sources of money (by gender) Males net work = 13% Females net work = 23% Base: All respondents (n=400) Multiple response Sig. different @ 95% confidence interval Q 6. Where do you get your money now? Base: All respondents (n=400) 45

5. 1. 3 Sources of money (by age) Base: All respondents (n=400) Multiple response Sig. different @ 95% confidence interval Q 6. Where do you get your money now? 46

5. 2. 1 Mean monthly income from all sources Mean HK$1, 356 per month Median HK$900 per month Mode HK$1, 000 per month Base: All respondents (n=400) Q 7 a. What is your total income each month, from any source? IF NECESSARY What is your total monthly income from work / parents, other sources? [ ] Total (HK$) 1 Don’t know 97 Refused 99 47

5. 2. 2 Mean monthly income from all sources (by gender and age) Total Males Females HK$1, 356 HK$1, 323 HK$1, 396 15 - 16 years HK$977 HK$916 HK$1, 033 17 - 18 years HK$1, 742 HK$1, 699 HK$1, 789 Total Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 7 a. What is your total income each month, from any source? IF NECESSARY What is your total monthly income from work / parents, other sources? [ ] Total (HK$) 1 Don’t know 97 Refused 99 48

5. 2. 3 Summary of income by source Amongst those… Mean income from this source is… Proportion receiving is … Mean HK$924 94. 80% HK$876 HK$2, 704 17. 74% HK$480 Receiving money from parents Working part/full time Overall mean monthly income HK$1, 356 Base: All respondents (n=400) Q 7 a. What is your total income each month, from any source? IF NECESSARY What is your total monthly income from work / parents, other sources? [ ] Total (HK$) 1 Don’t know 97 Refused 99 49

5. 2. 2 Mean monthly income by source (by gender and age) From parents From work Males HK$979 HK$2, 675 Females HK$867 HK$2, 724 15 - 16 years HK$842 HK$2, 787 17 - 18 years HK$1, 014 HK$2, 690 Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 7 a. What is your total income each month, from any source? IF NECESSARY What is your total monthly income from work / parents, other sources? [ ] Total (HK$) 1 Don’t know 97 Refused 99 50

5. 3. 1 Mean proportion of income from each source Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 7 b. Of that amount, how much is from READ OUT – SHOULD TOTAL TO Q 7 a [ ] parents or family allowance (%) 1 [ ] work / employment (%) 2 [ ] Other (%) (Specify______) 3 Don’t know 97 Refused 99 51

5. 3. 2 Mean proportion of income from each source (by gender) Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 7 b. Of that amount, how much is from READ OUT – SHOULD TOTAL TO Q 7 a [ ] parents or family allowance (%) 1 [ ] work / employment (%) 2 [ ] Other (%) (Specify______) 3 Don’t know 97 Refused 99 52

5. 3. 3 Mean proportion of income from each source (by age) Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 7 b. Of that amount, how much is from READ OUT – SHOULD TOTAL TO Q 7 a [ ] parents or family allowance (%) 1 [ ] work / employment (%) 2 [ ] Other (%) (Specify______) 3 Don’t know 97 Refused 99 53

5. 4. 1 Spending and saving pattern Mean proportion saved Mean $ saved Mean proportion spent Mean $ spent Base: All respondents (n=400) 24% HK$325 75% HK$1, 028 74% save something each month. Overall, 24% of net monthly income ($1, 356) is saved. Q 7 c. Approximately what proportion of your monthly income do you spend / save each month? Spend [ ] 0 – 100 % 1 Save [ ] 0 – 100 % 2 Don’t know 97 Refused 99 54

5. 4. 2 Spending and saving pattern (by gender and age) Savers mean income Non-savers mean income HK$1, 426 HK$1, 170 Sig. different @ 95% confidence interval Base: All respondents (n=400) Q 7 c. Approximately what proportion of your monthly income do you spend / save each month? Spend [ ] 0 – 100 % 1 Save [ ] 0 – 100 % 2 Don’t know 97 Refused 99 55

5. 4. 3 Distribution of monthly spending Base: All respondents (n=400) Q 8 a. Thinking about how you spend your money, about what percentage of your monthly income from all sources do you spend on…? READ OUT 56

5. 4. 4 Distribution of monthly spending (by gender and age) Entertain ment Saving Purchase of goods Purchase of clothes Investing % 51% 25% 10% 12% 1% $ $675 $331 $132 $159 $13 % 46% 24% 4% 23% 1% $ $642 $335 $56 $321 $14 % 50% 23% 6% 17% 1% $ $489 $225 $59 $166 $10 % 47% 25% 8% 1% $ $819 $436 $139 $314 $17 Male Female 15 - 16 years 17 - 18 years Base: All respondents (n=400) Q 8 a. Thinking about how you spend your money, about what percentage of your monthly income from all sources do you spend on…? READ OUT 57

5. 4. 5 Distribution of monthly savings Base: All respondents (n=400) Q 8 b. Thinking about how you save your money, about what percentage of your monthly savings is being saved towards…? READ OUT 58

5. 4. 6 Distribution of monthly saving (by gender and age) Education Holiday Specific item Rainy Day % 13% 9% 33% 46% $ $43 $30 $109 $152 % 11% 30% 48% $ $37 $101 $161 % 12% 11% 33% 43% $ $28 $26 $77 $101 % 12% 9% 29% 50% $ $50 $38 $121 $209 Male Female 15 - 16 years 17 - 18 years Base: All respondents (n=400) Q 8 a. Thinking about how you spend your money, about what percentage of your monthly income from all sources do you spend on…? READ OUT 59

5. 5 Summary of income and expenditure Mean income $924 Parents (95%) Work (18%) Mean income $2, 704 Net Mean Monthly Income $1, 356 Saved $325 24% 76% Spent $1, 028 emergency $153 $663 Entertainment Buy something $101 $244 Buy clothes Education $39 $95 Buy goods Travel $33 $14 Investments $14 Other 60

5. 6 Some interesting extrapolations to the HK economy Net Annual Income 352, 000 aged 15 – 18 years x $1, 356 average income x 12 months = HK$5. 7 billion Total gross annual value of allowances from parents 352, 000 x 94. 8% receiving an allowance x $924 x 12 months = HK$3. 7 billion Estimated gross annual income from part/full time work 352, 000 x 17. 74% working x $2, 704 ave. income x 12 months = HK$2. 0 billion Estimated annual economic value of spending 352, 000 x $1, 028 spend per month x 12 months = HK$4. 3 billion Estimated annual pool of savings* 352, 000 x $325 per month x 12 months = HK$1. 4 billion * Assumes savings are not subsequently spent 61

Section 6: Credit cards 62

6. 0 Credit cards • Only 2% of respondents said they had a credit card. The implications of this low figure are: – The interpretation of the question was taken to exclude signatory cards of parents. The proportion holding such cards is indeterminate. – Amongst the 18 year olds who are eligible to take out their own card, penetration is very low. Given average income amongst 17 -18 year olds is only $1, 742 this low penetration may reflect a general ineligibility to obtain a card based on income. A positive implication is that there is no credit card debt problem amongst this group. 63

6. 1 Credit card ownership Note – this question pertains to personal card ownership only and does not include signatory cards Proportion of monthly spend Number of respondents 1% N=1 10% N=2 30% N=1 Don’t know N=3 One respondent indicated he rolled over HK$2, 000 per month on his credit card, the remainder paid the card off in full. Base: All respondents (n=400) Q 9 a. Do you currently have a credit card? IF YES How many? SINGLE RESPONSE 64

Section 7: Tertiary Education and employment 65

7. 0 Summary of tertiary education and employment • Nine out of ten 15 – 18 year olds (89%) indicated that they want to go to university. The rate of intent is consistent by both age and gender. One noticeable difference, is that 10 of 12 respondents working full time did not want to go to university. The proportion NOT wanting to go to university was similar between those working part time (12%) and those not working at all (9%). • Respondents were asked what profession they intend to enter when they join the workforce. The most commonly cited profession was ‘tourism and hospitality’, mentioned by 15% of respondents. One in ten (10%), said they want to be an accountant and the same number want to work in Government. Slightly less (9%) want to be lawyers or enter the education sector (9%). Relatively few were interested in working in Hong Kong’s traditional industries – Trading and manufacturing (5%) or Construction, property/infrastructure (4%). • Whilst there were no significant differences by age, some differences by gender were apparent: – A greater proportion of males want to be lawyers (12%), work in I. T. / Technology (11%) or ‘construction, property and infrastructure’ (7%). Females were more likely to want to work in tourism and hospitality (19%) or medical services (7%) 66

7. 1 Proportion who want to go to University Base: All respondents (n=400) Q 11. Do you want to go to University? SINGLE RESPONSE Sig. different @ 95% confidence interval 67

7. 2. 1 Preferred occupation Base: All respondents (n=400) Q 14. What profession to you want to join when you enter the workforce? DO NOT READ OUT, SINGLE RESPONSE 68

7. 2. 2 Preferred occupation Base: All respondents (n=400) Sig. different @ 95% confidence interval Q 14. What profession to you want to join when you enter the workforce? DO NOT READ OUT, SINGLE RESPONSE 69

Intending accountants – key statistics Proportion intending amongst 15 – 16 year olds Proportion intending amongst 17 – 18 year olds 6% 9% Proportion intending amongst males Proportion intending amongst females Perceived salary to be comfortable Perceived age earn comfortable salary Hours willing to work to earn this salary 10% 11% HK$19, 179 28. 3 years 46. 7 hours 70

Appendix – Questionnaire 71

72

73

74