Why more and more young people are giving up saving for the future

Rosie is a 25-year-old college outreach administrator with an above-average salary. I used to think someone else took my salary [£30,000] loaded,” she said. “So I was shocked when I wrote it down and yes it got you past it – but you still can’t be frivolous and have extra stuff to hide. “

After moving to London from Manchester – which meant higher bills and more expensive pints – Rossi no longer saw the point in saving. “With the few bucks I can save each month, I can’t afford to buy a house or send myself on a great vacation. I might as well spend it on a bar.”

Between the pandemic, the climate crisis and the ongoing war, it’s no surprise that for many like Rossi, the future seems like a risky investment. The savings accounts of the younger generation have been hit the hardest during the pandemic. Instead of scrambling to save money, many now decide to cut losses and spend their hard-earned money on taking advantage of bad situations. If the future looks bleak at best, why save for it?

One polls Among some 2,600 U.S. adults, 45% of 18-35 year olds “don’t think there’s any point in saving until things get back to normal” (whatever that means).as New York Times ReportMany people spend their money on things that bring meaning to their lives, including passion projects, risky careers, and life experiences.

In the UK, young people seem to feel the same way. Natalie, 22, is studying for a master’s degree throughout the lockdown in 2021, and she can’t find any part-time jobs to support her studies. This made her quickly drain all the savings she had ever had. She is not alone.According to 2021 figures, around 19% of UK adults have less than £100 in savings study Yorkshire Building Society. It also found that the number of people who don’t save at all has nearly doubled in the past two years, with more than 21% now not saving, up from just over 12% in 2019.

Natalie’s rent in London, now in management, is the main anchor for any potential savings. ○Only 30% under 30 With owning your own home, an increase in inflation is closely linked to a record rental market and a reduction in tenants’ disposable income.In London, 22 to 29 year olds spend on average 57 Rent a single bed for % of their monthly salary. Outside London, rent eats up about a third of their income.

“Half my salary ended up going to rent and bills,” Natalie said. “After paying for food, I want to be able to go out and actually spend what’s left, not save it.” Like Rosie, Natalie doesn’t see the point of saving. “I’d rather go out and make memories. If I just put this money in a savings account, it feels like I’m reducing my quality of life.” She feels young people are being given an ultimatum: “Either save or enjoy life. … I don’t think it’s healthy.”

although three quarters of young Britons say they feel compelled to change their spending habits to suit the current financial climate, but in some areas they are reluctant to be frugal.one study It was found that 32% refused to give up socializing.

With an average of £320 left over after rent and bills, it’s no surprise that 51% of respondents found they couldn’t pack anything at the end of the month. “I don’t save mainly because I can’t,” says Sophie, a 26-year-old swimwear designer. “I prioritize bills, weekends and savings for weekend or holiday outings.”

Sophie doesn’t save for another reason. “I’m single,” she said. “A lot of my friends in relationships are saving up to buy a house with their partner. But it’s not something I plan to do in the future, and it’s not something that seems realistic right now.”

Sophie explained that if she was more certain about her future plans or settling down, she might prioritize saving a little more. “I don’t know where I’ll be in a few years,” she said. “I prefer to spend my spare money on things that make me happy right now – like a membership to a fancy gym that makes me want to go, or going out for a drink rather than spending the night stressing over the bills.”

Rising energy bills, gasoline and food prices are the main culprits affecting people’s incomes. In response to the current financial landscape, a survey shows that reducing travel (54 %), less shopping (52%) and less takeout (51%) are among the sacrifices Gen Z makes. However, where is the line between wisdom and self-sacrifice?

then UK inflation That is surging and will only continue to rise, and beyond the upcoming fall in energy prices, the government should ensure people can afford basic necessities, rather than educate young people on the ethics of where they choose to spend their spare cash.

Joe, 27, a commercial and sales director, used to save around 10 percent of his salary, but over the past few months has found it difficult to save even that. “I’m not good at saving anything,” he admits. “When I first moved into my new apartment in December, everything was fine, but since the cost of living has gone up, I’ve been frustrated.”

“I know saving for the future can be important, but as an adult, I hate it,” Joe said. “I’ve had a couple of big holidays in Budapest and Dubai this year, and it’s been heavy on the bank account, but I’d rather let it go for them. Life is too short.”

Savings are widely believed to be futile – and it’s easy to see why. “Like a lot of people my age, I think I’ve come to terms with the fact that I may never be able to buy a house,” Rossi explained. “The UK economy is not structured to help someone like me get there.”

The answer to financial responsibility doesn’t lie in forcing people to give up the little pleasures of life. Nor is it blaming young people for not putting their money aside as they struggle to make ends meet. “You’re only in your 20s once,” Rosie said, “after losing nearly three years to the coronavirus, when I was freed from my job as a waitress and stuck in my parents’ old box, I wouldn’t be stingy. Save pennies now. I’m going to spend money and live my life.”

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