48% of 16 to 24-year-olds ‘have not put any money in savings in past year
Nearly half (48%) of Gen-Zs aged 16 to 24 in the UK have not put any money into savings over the past year, according to a survey by HSBC UK and Young Enterprise. The research, conducted in April and May among more than 1,000 individuals, indicates that 63% of this age group worry about spending money.
Why are young people struggling to save?
Financial anxiety is particularly high among the youngest cohort. According to the survey, 64% of 16 to 19-year-olds worry about spending, and 59% of those in the same age bracket report feeling “guilt” when they spend money.
Sarah Porretta, chief executive of Young Enterprise, attributed these trends to a generation under “real pressure.” Porretta stated that these young people grew up during the Covid pandemic and subsequent cost of living challenges, leaving them struggling to save.
How could financial education change these outcomes?
Natalie Gregoire-Skeete, head of societal purpose and sustainability at HSBC UK, stated that the findings highlight a need for “trusted, judgment-free financial education.” She noted that financial confidence starts early.
Gregoire-Skeete argued that the inability to save and anxiety over spending are signals that schools, families, charities, and businesses may need to work collectively. Such efforts could help young people build the skills and confidence required for the future.
What may happen next for Gen-Z finances?
Increased collaboration between educational institutions and businesses is a possible next step to address the savings gap. If these entities implement the “collective” approach suggested by HSBC UK, young people may gain more access to financial literacy tools.
The continued impact of cost of living challenges could further hinder the ability of 16 to 24-year-olds to build reserves. This may lead to a prolonged period of financial instability for those currently unable to save.
Frequently Asked Questions
What percentage of 16 to 24-year-olds have not saved in the last year?
According to the survey, 48% have not put any money into savings.
How many 16 to 19-year-olds feel guilt when spending money?
The research shows that six in 10 (59%) of 16 to 19-year-olds feel guilt when spending.
Who conducted the research on Gen-Z savings?
The survey was carried out by HSBC UK and Young Enterprise among more than 1,000 people aged 16 to 24 across the UK.
Do you think schools should be more responsible for teaching financial literacy?