Young Brits fret over finances
Written by Scott Thompson
It seems the impact of the financial downturn is causing sleepless nights for Millennials. New research from Mintel reveals that 51 per cent of British Millennials worry about money most of the time, rising to 58 per cent in women. And this has moulded them into a generation of cautious spenders, with just 30 per cent agreeing they are comfortable using credit to pay for things that they couldn’t otherwise afford.
Fifty seven per cent think their generation is or will be worse off financially than previous generations and 55 per cent say it’s unrealistic for someone of their age to expect to retire before the age of 65. Chryso Kolakkides, senior financial services analyst at Mintel, says: “Although the UK economy is gaining steam and youth unemployment continues to fall, many Millennials still feel disadvantaged, particularly those who entered the workforce when things were at their worst. Millennials who already began their careers with depressed salaries during the periods of economic turmoil can find it difficult to climb the ladder. At the same time, many have seen their families struggle with their finances, or have experienced economic hardship first-hand, giving them a better appreciation of the importance of sound money management. They understand the importance of prioritising saving and paying off debt over spending, and the financial crisis has pushed these young adults to think and worry more about their financial future.”
Millennials are also keen to keep up to date with the financial services market. Sixty three per cent say that it is important to spend time researching the best ways to save or invest money, with 14 per cent strongly agreeing. What’s more, two in five enjoy learning more about personal finances. However, 48 per cent state that information on finances and investing is generally difficult to understand. “The majority of Millennials understand the importance of monitoring the market. However, a willingness to keep up with the market does not necessarily translate into action, particularly as many young adults have very few savings available to invest. With interest rates at an all-time low across the board, even the cash benefit of switching savings account is marginal for all but the heaviest savers.” Chryso comments.