Young Brits are still enjoying spending money on ‘little luxuries’ (Image: Getty)
A poll of 1,000 18–29-year-olds found 95% are finding savvy ways to save money – without giving up life’s little luxuries. The research discovered 28% who are using reselling apps to make money from unwanted belongings have made an average of £184 over the past year, meanwhile 46% have opted for the ‘round up’ setting on their banking apps – rounding each purchase up to the nearest pound and putting the excess into savings – to save extra cash.
What’s more, a third (33%) are making the most of Lifetime ISA accounts to purchase their first home or to put towards their retirement – claiming 25% of their savings free from the government.
Rajan Lakhani at Plum, which commissioned the research, said: “Gen Z has completely redefined what ‘treating yourself’ looks like.
“Rather than reckless spending, we’re seeing a generation that plans ahead, hunts for value and uses smart saving tactics so they can still enjoy life’s little luxuries.
“Whether that’s a great coffee, a meal out with friends or the occasional fashion splurge, without compromising their financial security.”
What is your treat personality? This quiz will reveal if you’re a ‘Carefree Treat King or Queen’, or a ‘The Savvy Legend’.
Banking app round ups can help boost savings (Image: Getty)
The study found 23% of Gen Z treat themselves to these ‘little luxuries’ on a weekly basis, as 29% claim it helps ‘keep them going’.
Over the past year, 58% reckon their general spending habits have changed, with the majority putting it down to the cost of living. However, 35% say it is due to better planning and 32% have improved their financial awareness.
When seeking money advice, 44% typically turn to friends and family, 25% use money apps, while 31% prefer social media. Some 24% believe YouTube and Instagram is the key reason their generation is more financially savvy.
Meanwhile 22% reckon it’s due to learning from previous generations’ financial mistakes and growing up during economic uncertainty (23%).
Plum’s Rajan Lakhani added: “Gen Z are often misunderstood when it comes to money, but the reality is they’re one of the most financially aware generations. The ‘avocado on toast’ jibe is truly unfair and incorrect.
“Growing up against a backdrop of economic uncertainty has made many of them cautious, informed and far more proactive about managing their finances from an early age.
“Traditional ideas of wealth seem increasingly inaccessible so they’re more focused on control and flexibility – where budgeting, saving and tracking spending are second nature.”