More than 13.5 million UK adults are living through their first recession and, unlike recession veterans, are less prepared to change their lifestyles.

According to a study from Lloyds TSB, for over a quarter of adults aged 34 or under, the current economic downturn is the first recession they have experienced in adult life and, while recession veterans are realistic about what to expect, novices are less prepared for what comes next.

Lloyds finds that inexperience breeds optimism, with one in ten recession novices expecting the recession to end in 2009.

In contrast, just six per cent of recession veterans have hopes of an economic upturn this year, while 37 per cent predict the recession to last until 2011 or beyond.

Recession novices are mainly concerned about the effect of the recession on their own lifestyles, such as fewer job and pay rise opportunities, having less money to spend and not being able to afford to pay their existing debts.

The veterans, however, show greater concern for wider economic issues, such as low interest rates, poor management of the economy by the government, a weakening economy and rising crime.

The research revealed that a third of recession veterans feel better prepared for today's economic woes because they have lived through a downturn before, although almost half acknowledge that it feels very different to last time.  

Many say their confidence comes down to better management of their finances, with 68 per cent feeling better prepared than recession first-timers because they are more careful with money and don't overspend (compared with 57 per cent of recession novices) and 66 per cent say they are better prepared because they don't rely on credit to fund their lifestyles.

Over half of those with recession experience simply think they are more realistic than younger generations about how much they can spend.

Graham Lindsay, managing director, customer experience at Lloyds TSB, says, ‘Managing your finances during a recession is challenging regardless of whether you have experienced one before or not. If you have financial worries, facing them head on is always the best policy, and having a plan of action puts you in control and helps to put your mind at ease.’

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