- Almost 7 in 10 (69%) of Gen Z set themselves a financial budget, compared to just over two fifths (42%) of Baby Boomers
- Nearly three quarters (74%) of Gen Z participate in social media-driven challenges to boost their overall savings
- 22% of UK adults save less than £50 per month
- Nearly a quarter of adults (24%) save less on average than they think they should
- Just over a fifth (22%) say the amount in their savings negatively impacts their mental health
- More than half (53%) do not have a specific savings goal
Social media may be inspiring a new generation of savvy savers and fiscally responsible young adults, with 74% of Gen Z participating in social media-driven challenges to boost their overall savings as revealed in the latest NatWest Savings Index.
In comparison to other age groups, Gen Z are the most likely of any generation to budget. Almost seven in ten (69%) 18-24-year-olds say they create a budget for their finances, contrasting with those aged 65 and older where less than half (42%) report setting a budget for themselves.
Younger savers are actively engaging with social media-driven savings challenges. Nearly a fifth of 18-24-year-olds say they take part in ‘no-spend months’ (18%), and the ‘50/30/20’ (wants/needs/savings) rule (17%), with more than one in five trying no impulse purchases (21%), as they seek to boost their overall savings. All of this may be creating a generation of financially aware young people.
The NatWest Index surveyed 10,000 people across the UK. It found that nationally, 22% of UK adults save less than £50 a month. On average, UK adults who save are saving 24% less per month than they think they should, putting away £203.21 each month despite believing that they should be saving closer to £265.95.
As well as many lacking a savings goal, the research revealed that the absence of a savings buffer is taking a toll on their mental health, with 22% of respondents saying their savings balance is negatively impacting their wellbeing and more than a quarter (27%) of adults saying they do not discuss their finances with anyone. There are clear generational differences, with younger generations more likely to discuss their finances (86%), compared to Baby Boomers, 37% of whom say that they would not discuss this with anyone.
The research also discovered that nearly two in five UK adults (39%) do not budget at all and 13% have no emergency fund, with 25% of those surveyed having less than £400 in their emergency fund, despite ongoing economic challenges.
Over half of respondents cited increased grocery costs (56%) and increased energy bills (51%) as the top factors limiting savings potential. More than three-quarters (76%) said they were willing to cut discretionary spending to boost savings, including 42% willing to give up eating out to increase how much they can save.
“On the plus side, it’s encouraging to see the younger generation engaging with new ideas and solutions to boost their savings. The research is a stark wake-up call – nearly two in five adults (39%) don’t budget at all and just over half (53%) do not have a specific savings goal,” said Lewis Broadie, Savings Expert at NatWest.
“The findings stress a need for greater financial education and accessible tools to support people in effectively managing their budgets and getting practical support to reach their savings goals.”
View the full NatWest Savings Index for more results on the UK’s savings habits, as well as tips and advice around budgeting towards savings goals. Savings Index | Savings Statistics and Report | NatWest
For further information contact
Andrew Neilson, andrew.neilson@natwest.com, 0131 626 1839 / 0777 197 3550
