The pandemic has been challenging for many of us, with young people particularly affected. Our report finds that young people (18-30 years old) are more likely to be saving money than their elders, yet almost half (47%) still have low financial resilience.
Despite what is sometimes said about spending on frivolities like coffee and avocados, our research finds that young people are often doing the right things financially. They are more likely to be saving at all than any other age group and almost three quarters (72%) see the sense in saving for the future so that they will not have to save even more later on.
However, the research, supported by Yorkshire Building Society, also finds that:
- Young people are significantly more likely to have fallen behind on domestic bills and credit card repayments in the last six months (31%) than those aged 51+ (3%).
- Young people are spending more than twice as much as older people (aged 51+) on essentials, equating to nearly £1,300 more per month.
For policy makers to get to grips with what appears to be a cost of living crisis for young people, the report recommends that the government makes tackling this issue an urgent priority. The government should establish a commission, chaired by a dedicated Minister, to assess why the cost of living hits the young so hard, and what can be done to secure the financial wellbeing of future generations.