Young people planning to save not spend in 2015
Young people plan to save not spend in 2015, at least in theory, with 32% of 18-24 year olds planning to curb spending and a third (35%) wanting to increase savings.
Nearly half (44%) of the population plan to stick to a monthly budget in the New Year, but it is those aged 18 to 24 who are most likely to prioritise getting in control of their money this year.
New research from pensions and insurance provider Friends Life shows almost a third of all 18-24-year-olds (32%) plan to curb the amount of money they spend on leisure activities, compared to a UK average of 18%. In addition, more than a third (35%) of 18-24 year-olds said they wanted to increase their savings, with 17% saving to buy a car and 20% a house.
Friends Life suggest that this increased propensity to save among younger people could be a direct impact from auto-enrolment. Andy Curran, Chief Executive Officer, UK at Friends Life said: “As our thoughts turn to 2015, it is really interesting to understand what people’s financial priorities are. The positive news is that many feel confident about their financial situation and are already taking steps to ensure they plan ahead and save for both the short and long term.
“This is particularly evident among those aged under 25 who are just entering the workplace and appear to have a healthy approach to saving. This is a crucial shift in savings behaviour as our recent Retirement Savings Map found currently many people face a £96.67 per week financial shortfall in retirement. This demonstrates why it is so important for people to take control of their finances sooner rather than later.”
When it comes to what people want to do with their money in the short term, 44% of the population said it was to stay in control of daily spending and sticking to a monthly budget was most important. A third (29%) said their top priority was to take a holiday while one in five (18%) said they wanted to pay off credit card debt. The good news is that overall people are positive about their ability to achieve their financial goals in 2015, with two in five (38%) confident they will achieve their long and short term priorities, and half (47%) saying they will be in a comfortable financial position.