Home ownership amongst 22-29 year olds has fallen 10% since the financial crisis, according to new research by the BBC.
Young people in the UK are losing the savings habit – with more than half of 22 to 29-year-olds living with no savings at all, official figures show.
Some 53% of this age group have nothing in a savings account or Individual Savings Account (Isa), the Office for National Statistics (ONS) said.
The squeeze on pay and the prevalence of insecure work mean many cannot put money aside.
Ten years ago, 41% of the equivalent age group had no savings.
Among those who are saving now, seen in the chart below, nearly four in 10 have no more than £1,000 tucked away.
On average, those in this age group who do save have £1,600 in the bank – up from £900 a decade ago.
However, a savings gap has also emerged with the top 10% of savers having £15,000 or more set aside, according to the latest figures from 2014 to 2016, compared with the bottom 10% who had less than £100.
Savings tips: Andy Webb, blogger – Be Clever With Your Cash
- Pay your savings first – set up a standing order to move money after payday.
- Automate your savings – link your bank account to a smart app. The app analyses your spending habits and decides how much you can afford to save, and automatically moves the money into a savings account.
- Round up your spending – some banks have a feature where you can round up transactions to the nearest pound. So spend £1.30 and 70p will be moved to a separate pot.
- Make it difficult to spend your savings – if you are likely to dip into your savings for impulse purchases, keep the money in an account which is hard to access.
- Spend in cash – if you’re going on a night out, take cash with you and leave your cards at home. Then dump any change you have left to gradually build up a pot of notes and coins.
Source: BBC News