‘Under pressure’: Gen Z fail to save as financial responsibilities mount
Young Brits are failing to place any money into their savings as they continue to face increasing financial pressures.
Nearly half of Gen Z, those aged between 14 and 29, have not allocated any money to their savings in the past year, according to research from Young Enterprise and HSBC UK, as they find themselves struggling to feel financially secure.
Young people have found themselves unable to spare funds for savings, as they face rising living costs and social pressure as well as a lack of financial education.
Sarah Porretta, chief executive of Young Enterprise, said: “The idea that young people are reckless with money simply isn’t true.
“This… shows a generation under real pressure, they have grown up through first the Covid pandemic and then cost-of-living challenges and are worried about spending.”
Spending panic
Meanwhile, two-thirds also expressed worry over spending money, with many admitting being caught in an emotional spending cycle.
Over 40 per cent said their spending is to make them feel better emotionally, while 55 per cent confirmed feeling guilty when spending.
Others admitted that despite spending to feel better, they ultimately regretted purchases on a regular basis.
This feeling was particularly visible among teenagers, with 64 per cent of 16 to 19 year olds worrying about spending, with 50 per cent feeling guilt when doing so.
No communication and education concerns
Despite these concerns, many young people are reluctant to seek support, with over one in five saying they would feel embarrassed asking for help with budgeting.
The problems facing young Brits also point to wider concerns surrounding financial education, with industry figures increasingly raising the alarm over the lack of monetary teaching that is given at school.
Nearly two-thirds of people across the UK feel the financial education they received during education failed to prepare them for managing money in later life.
Natalie Gregoire-Skeete, Head of Societal Purpose and Sustainability at HSBC UK, said: “When young people feel unable to save and anxious about spending, it’s a clear sign we need to do more collectively – across schools, families, charities and businesses – to help build the skills and confidence they need for the future.”