Belfast Telegraph

'Millennials' aged 18-35 saving more money than older generation, survey finds

Young "Millennial" adults are saving larger chunks of their cash than the generation above them, a survey has found.

Those in the 18 to 35 Millennial age group are also more likely to have thrifty habits when buying everyday goods such as a coffee or a pint of beer than the Generation X age group of 36 to 54-year-olds, the research from peer-to-peer lender Zopa suggests.

But the survey also found that with financial hurdles such as student loans, costly renting and the struggle to get on the housing ladder, many Millennials also see debt as a normal part of their life.

On average, Millennials save 10.9% of their post-tax monthly income, while those from Generation X put 8.8% of their income away typically.

Millennials would typically be prepared to pay £2.68 for a cup of coffee, while on average those in Generation X would pay £3.07.

The younger generation would be prepared to spend around £3.87 on a pint of beer, while the older generation would fork out £4.74.

Millennials would also spend up to £416 for a week-long holiday in Europe, while their older counterparts would be prepared to spend around £490.

Meanwhile, nearly half (46%) of 18 to 35-year-olds surveyed expect to manage some form of debt for the rest of their lives.

They also tend to have a higher threshold of what they consider a "manageable" amount of personal debt - an average of £5,892 compared with £4,251 among the older generation.

When asked what measures they believed could help the financial prospects of their generation, 44% of Millennials said lower higher education costs, 42% said fairer deals for renting and over a third (37%) said there should be better financial education in schools.

More than one in three (38%) Millennials surveyed believe that they will never own their own home outright. But among those who are putting money aside each month, 41% are saving towards their first home.

Giles Andrews, executive chairman and co-founder of Zopa, said: "This research shows that most young people have a very responsible and positive attitude towards their finances, in most cases beating the odds heavily stacked against them."

Around 1,000 Millennials and 1,000 people from Generation X were surveyed.