Key facts
- Nearly half of Gen Z have not saved money in the past year.
- Rising living costs and social pressures are contributing to financial insecurity.
- Many young people engage in emotional spending and feel guilty about purchases.
- A significant portion of Gen Z are reluctant to seek help with budgeting.
- A majority of UK adults feel their financial education was inadequate.
Young Britons, identified as Generation Z, are experiencing significant financial strain, leading to a failure to save money. Research indicates that nearly half of individuals aged 14 to 29 have not allocated any funds to savings over the past year. This situation is attributed to a combination of rising living costs, social pressures, and a perceived lack of adequate financial education.
Many in this demographic report feeling anxious about spending, with a substantial portion admitting to using shopping as an emotional coping mechanism. This often leads to feelings of guilt and regret over purchases, particularly among teenagers. Furthermore, a reluctance to seek financial advice, with over one in five expressing embarrassment about asking for budgeting help, exacerbates the problem.
Industry figures and experts highlight a broader concern regarding financial literacy, with a significant majority of UK adults believing their education did not sufficiently prepare them for managing personal finances later in life. Calls are being made for a collective effort involving schools, families, charities, and businesses to enhance the financial skills and confidence of young people.