Why do so many young adults avoid saving?

It’s easy to come up with reasons to put off saving money, especially if things are tight right now.

For many of us, it’s something we’ll “start soon”.

But for younger people, the main reason looks a little different.

According to a Loqbox poll, more than a quarter of Gen Z - adults aged between 18 and 27- say they don’t save because “treating myself is self-care”.

And nearly a quarter (23%) of young millennials – people aged 28 to 35 - say the same. 

That compares with just 7% of Gen X (45-60) adults.

“The biggest barrier to saving isn’t just about numbers,” said Tom Eyre of Loqbox.

“It’s the stories we tell ourselves. 

“The rise of the ‘self-care splurge’ among Gen Z and young millennials shows how easily a positive cultural trend can become a financial roadblock.”

Mr Eyre urged people to start looking at the reasons they give for not saving so they can start to address them.

“It’s not about pressure or guilt, but about understanding your money mindset so you can build habits that genuinely serve your future,” he added.

1 in 3 young adults couldn’t cope with a surprise £300 bill

Having some money put aside means you have a vital safety net when life throws something unexpected your way. 

From a broken boiler or car repair to an emergency trip to the dentist, surprise costs can hit us at any time and without any warning.

But according to the Building Societies Association (BSA), one in five adults (21%) - including over a third of under-24s - don’t think they could cover an unexpected £300 expense. 

And figures also show that over a quarter of UK adults (27%) have less than £1,000 put aside - while 12% have no savings at all.

So they’re incredibly vulnerable if the unexpected happens, and more likely to have to borrow money and risk falling into debt.

How can I start saving when money is tight?

If keeping up with your regular expenses, from your weekly shop to your rent or mortgage, is difficult, saving might well be something to put off for another day.

But putting even small amounts aside can make a big difference.

Start small

Don’t give yourself a mountain to climb on day one.

Even £1 a day adds up to £30 a month and can help you get into a habit of saving whatever you can afford.

Automate it

Set up a standing order to move a small amount into savings after you get paid and before you’re tempted to spend it.

Stick to a budget

Set a realistic household budget, so you know how much money you have coming in, where it’s going and what you have left over that you can afford to put into savings.

Set goals

Give yourself clear targets, so you can see the progress you’re making.

If you have your own idea of what success looks like, such as having your first £100 in savings, you’ll be more likely to stay motivated and stick with good habits.

Reframe ‘self-care’ 

A little treat is fine, as long as you can afford it and don’t take your eyes off other financial priorities.

After all, saving money counts as self-care too.

Search for the best savings account

Many of us will have our money sitting in a current account, but these usually offer lower interest rates than savings accounts.

So find out what options are on the market so you can find a savings account that gives you better returns.

‘No spend’ weekends

You might have seen many people online set themselves the challenge of deliberately not spending money on non-essentials for a whole weekend.

And that doesn’t mean doing nothing for two days.

People are instead enjoying free activities, like going to museums, watching a movie at home or going for a nice walk.

Try this maybe once a month and put the money you didn’t spend into savings instead.

Find out what extra support you could get

You might be eligible for financial support from the government so it’s worth finding out what you could be entitled to.

You can either give us a ring and we’ll check for you, or use our free benefits calculator to see what help you could get.