Millennial saving habits: How do you compare?

Millennial Saving Habits: TIps, fixes and lifestyle switches

We carried out a survey of 2,097 UK adults to find out how they are currently saving. Of those surveyed 488 were Millennials and 707 were Generation X.

Saving for the future is something everyone knows they should do, but we understand that life happens, and that there are many factors which can get in the way of being in a position where one can save regularly.

Our survey revealed that while Millennials are amongst the best savers in the country, with 59% saving at least once a month, Generation X are not far behind with 57% saving as regularly as this. The only difference being that whilst both are saving for shorter term goals like holidays, Millennials are more likely to be saving for a home, whereas Generation X are more focused on saving towards retirement.

Another factor that separates the generations in their savings habits, is where they save their money. Millennials are more likely to save in an ordinary savings account (58%) than other types of account. This reflects their shorter-term savings goals.

Although Generation X with 61%, are more likely than Millennials to save in ordinary savings accounts, this older generation were also 75% more likely than Millennials to save in an investment ISA, which would be better suited to longer term saving goals.

See how your savings habits compare to the average millennial and learn how you can make quick fixes or tweak lifestyle changes to improve your own saving habits.

Millennial savings habits: Tips, fixes and lifestyle switches

 

Text version: Overview of Millennial Saving habits:Tips, fixes and lifestyle switches to help Millennials save more each year

Shepherds Friendly carried out a survey that found Millennials are amongst the best savers in the UK with 59% saving at least once a month.

Discover how your saving habits compare to the average Millennial.

How often do Millennials save?

– 59%: At least once a month
– 5%: Once every 2 months
– 3%: Once every 4 months
– 2%: Once every 6 months
– 2%: Once a year
– 4%: Less often than once a year
– 14%: Never
– 11%: Don’t Know

Millennial’s savings habits are fairly similar to the previous generation, with Millennials slightly more likely to save regularly*.

• Millennials 18-34 year olds- 59%
• Generation X 35-54 year olds- 57%

However, there are still a minority of Millennials that save less than once a month, or never at all.

Tip
Set yourself a yearly savings goal that is realistic and commit to saving regularly into a dedicated account such as an ISA.

Lifestyle switch
Look out for cheaper alternatives of things you buy regularly, to free up cash for savings. For instance, instead of buying your morning coffee daily, put the money aside so you can add it to your savings account.

What about Millennials that don’t save at least once a month?

Looking at the millennials that do not save at least once a month, only 1/3 never save at all.
– 11%: Once every two months
– 7%: Once every 4 months
– 5%: Once every 6 months
– 4%: Once a year
– 11% Less often than once a year
– 33%: Never
– 27%: Don’t know

Fix:
Begin with closely monitoring what you usually spend over a month. You can then look back and reduce unnecessary expenditure for the following month.

Lifestyle switch
Sieve through all your subscriptions, and you will likely find at least one you never use. Cancel this. For the ones you do use, search for alternatives or share with family (providing this is permitted).

DID YOU KNOW? – There are many free and cheaper online video platforms (such as BBC iPlayer, All 4, Viewster and Mubi), that could replace paid for video platforms and still keep you entertained for hours.

How Millennials’ saving goals compare to Generation X

A Home
Millennials 26%
Generation X 11%

A Holiday
Millennials 33%
Generation X 30%

Retirement
Millennials 10%
Generation X 25%

Technology or high-end items
Millennials 16%
Generation X 8%

Both generations save for shorter-term goals, such as a holiday. The key difference with Millennials is that they’re more likely than Generation X to be saving for a home, as opposed to retirement.

Tip
Keep two separate saving pots- one of for short-term savings goals such as holidays and another to achieve your long-term savings goals, such as a house deposit or retirement.

Lifestyle switch
To make savings on short-term experiences like travel, leaving more leftover for your long-term savings pot, use flight finder apps and utilise the sharing economy for more affordable food and accommodation. Meanwhile, to make these short-term experiences affordable, you can save on everyday purchases like groceries with surplus food apps to make for more sustainable eating.

Are Millennials budgeting?

– 57%: Yes
– 35%: No
– 7%: Don’t know

The majority of Millennials do actively budget. However, A minority (35%) of Millennials are still not doing so.

Tip
Create a monthly budget with a budgeting app such as ‘Yolt’ and see how much have got left after bills.

Lifestyle switch
Schedule some time every month to make sure a budget gets drawn out for the month ahead. Make it fun, sit down with some tea, snacks and a playlist to help you concentrate.

How are Millennials saving?

Investment ISA
Millennials 8%
Generation X 14%

Cash ISA
Millennials 32%
Generation X 34%

Ordinary Savings account
Millennials 58%
Generation X 61%

Millennials are more likely to save in an ordinary saving account than other types of account.

Fix
Consider opening an investment account for your long-term goals. Historically, saving tax-efficiently into an Investment ISA gives you better returns for your money than saving in cash accounts.

Lifestyle switch
Commit to researching what Investment ISA is most suited to you and your savings goals. You don’t have to be an expert, nor do you need any previous experience investing your savings.

Could you improve your savings?

No matter where you start with our tips, fixes and lifestyle switches, any savings you make is a positive and a forward step in improving your saving habits and financial wellbeing.

Fieldwork was carried out online in August 2018 and results are weighted to be representative of all UK adults aged 18+. Total sample size was 2,097 adults, of which 488 were Millennials and 707 were Generation X.
*By save regularly, we mean save at least once a month.

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Please note: All information within Your Resource Centre is correct at the time of publication, and we make every effort to keep content accurate. However sometimes information may be out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The information reflects the view of the author and not that of Shepherds Friendly Society.

If you’re not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.

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