Stop Calling Us Frivolous, Young People Are Saving More Than You

People aged 18-30 are more likely to save than any other age group – but still can't afford to buy a home.
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“If you want to own a home, stop buying brunch,” they say. Meanwhile, under 30s are at risk of injury from the world’s biggest eye roll.

But it is not avocado on toast, fast fashion or even travel abroad that’s holding a generation back from ticking off those traditional milestones – and we finally have some evidence to prove it.

It fact, those aged 18 to 30 are more likely to be savers than any other age group, according to new research released by the cross-party think tank, Demos. Far from being frivolous, an overwhelming 84% of Gen Z and millennials in this age bracket are trying to save.

The real problem lies in the fact that younger people tend to have higher outgoings when spending on essentials compared to our older counterparts – and that house prices are at an all-time high.

Ivan Pantic via Getty Images

The report, supported by Yorkshire Building Society, found that under 30s are spending more than twice as much on average as those aged 51-plus on essentials, such as rent or mortgage payments and other bills.

It’s means nearly half (47%) of 18 to 30-year-olds have “low financial resilience” – which is defined as having little capacity to pay bills in the event of a financial shock.

Young people are significantly more likely to have fallen behind on domestic bills and credit card repayments in the past six months, at 31%, compared with 3% of those aged 51-plus, the research found.

Ben Glover, deputy research director at Demos and lead author of the research, said younger people are facing “the greatest uphill battle” amid a cost of living crisis.

“Despite the criticism that young people often face, regularly accused of spending too much money on coffees and avocados and not being financially prudent, our new research shows just how much young people are trying to look after their finances and save for the future – more so than any other age group,” he said.

“But amid a cost of living crisis, they still face the greatest uphill battle, with the highest spending on essentials, a lack of support and a system that doesn’t work for them.

“It’s time for the Government, policymakers and financial institutions to urgently work together to help boost young people’s financial wellbeing and prospects after the pandemic.”

So there we are: nothing to do with avocado.

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