Gen Z and Millennials are a nation of spendthrifts, unable to save for a rainy day, as their parents and grandparents did.
As many as 82 percent of Gen Z and millennial Brits are self-confessed spendthrifts, with one in five (21 percent) having no idea how much money they have in their account, while as many as 18 percent do not even having a savings account.
And 40 percent blame social media for their own spending, in particular trends, reels and ads on TikTok and Instagram, which have led them to become more materialistic than their parents and grandparents.
More than a third (34 percent) agree the older generation have a more responsible attitude towards spending and saving, because they don’t spend as much time on social media.
More than one in ten (13 percent) admit they are caught in a cycle of overspending, ending up with nothing left at the end of each month.
The research of 18 to 40 year olds, by Ford Money, found 16 percent have no plan for their financial future, with 82 percent saying they are frightened about their lack of money.
According to the findings, aside from essential outgoings like rent and bills, the average working Gen Z and Millennial doles out £726 a month on beauty appointments and products – while also splashing monthly cash on meals out (£97), takeaways (£88) and clothes (£83).
They also pay out £66 an average on streaming services, £57 on gym memberships and online gaming (£57), eventually running out of money by the 20th day of the month (on average)
Overall, 94 percent of those surveyed said they would love to be able to start saving money.
Will Davies, Chief Deposits Officer of Ford Money said: “Our survey has uncovered some truly eye-opening insights into the financial habits of young Britons, highlighting that Gen Z and Millennials are caught between the economic pressures of saving for their future, and the urge to spend impulsively.
“Even more worrying is that 18 percent don’t have a savings account, which leaves them exposed to financial emergencies and the lingering anxiety that if they faced any unexpected expenses, they don’t have a safety net to fall back on.”.
“In today’s tough economic climate, with high rent, stagnant wages, and the daunting prospect of buying a home, managing money has never been more complicated for young people. Add to that the powerful influence of social media platforms like TikTok, which bombards users with ads and trending content – it’s no wonder that people are stuck in a spending rut. Our data really highlights just how social media can influence our financial decisions and emphasises the need for guidance to help balance impulse spending with our long-term financial goals.”.
“However, it’s so encouraging to see that many young people genuinely want to start saving — they just don’t know where to start. I’m a firm believer that the key to building a solid financial foundation lies in taking small, consistent steps, rather than making crippling and unrealistic sacrifices. For those looking to kick-start a savings habit, using a Regular Savings account that requires you to pay in each month, like our new Step-up Saver, might be a good place to start. By regularly setting aside even modest amounts, you can develop a disciplined savings habit, take control of your finances, and break the cycle of overspending.”
The youngsters surveyed say their parents were saving for a mortgage (37 percent), starting a family (33 percent), a car (33 percent) and investments (28 percent) when they were the same age.
Yet one in three (32 percent) confess they are not confident that they will be able to save enough money for their dream holiday, mortgage, car etc.
