Millennials and generation Z are often characterised as disengaged with their savings and too busy spending time on their smartphones, sipping cappuccinos or eating avocado toast.
But research by peer-to-peer lender Zopa suggests this could be a gross misconception.
It polled 1,500 individuals who were either Gen Z – 18 to 22 year olds – or Millennials – 23 to 38 year olds.
The research found Gen Z, has its finger firmly on the financial pulse with more 35% having more than £1,000 in savings already, rising to 52% among millennials.
Even the mentality towards money among younger generations is positive., with 40% of those in generation Z believing that saving is fundamental for the future.
This is despite research by the Financial Conduct Authority (FCA) that suggested one in eight (13%) UK adults have no cash savings whatsoever and a further one in three (32%) only have savings of between £1 and £1,999.
There are regional variations.
Nearly six in ten (57%) UK adults have no cash savings or savings of less than £5,000. The same is true for two thirds of adults in Northern Ireland (67%) and the North East (66%), but for only half (52%) of adults in the East of England and in the South East.
Seven in ten (71%) UK adults have no investments at all, ranging from 65% in the South East to 78% in Northern Ireland
There are benefits to saving and investing as early as you can. Saving can help you fund holidays or special occasions and provide some return on your cash rather than letting it just sit in the bank.
Investing over the long term means you can afford to take more risk as you could make up losses over time, plus you benefit from compound interest by reinvesting your returns.
Whatever your age and wherever you live, it is never to late to start your saving or investing journey.
Talk to your financial adviser about how to manage your money.
- The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested.
- Past performance is not a reliable indicator of future performance and should not be relied upon.