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Typing the words “millennials” and “money” into Google can lead to depressing reading for young people living and working in the UK.
Incomes are said to be down, jobs scarce and money belts tightened compared to the baby boomer generation. The Resolution Foundation, a think tank working to improve the lives of people on low to middle incomes, even reported earlier this year that UK millennials are now second worst-hit financially in the developed world – second behind young Greeks.
No wonder millennials are feeling financially glum.
How can millennials and young people start saving money?
Here are four considerations:
Check your bank statements
Last year, credit checking firm, Experian, discovered that millennials are now more likely to be targeted by fraudsters than pensioners because they don’t check their bank statements regularly. Young people tend to do the majority of their financial transactions online without finding the time or motivation to check for abnormalities compared to the older generation who tend to be more hands on.
This also goes hand-in-hand with so called ‘ATM anxiety’ in which millennials choose not to check their bank statements due to fear of the total balance. Unfortunately, checking regularly is the only way you can really get a handle on what is coming in and what is going out.
Look for specific savings accounts, not basic
It might sound like a long shot, but saving for a house deposit is possible if you take advantage of the tools available to you. For example, our Home Saver savings account is designed for people looking to grow their deposit by setting aside regular monthly payments of £10 - £500. Ideal if you have spare cash – no matter how little – at the end of the month.
In addition, there are affordable mortgage schemes available – such as Shared Ownership – which accepts a housing deposit as little as 5%. So your savings may add up far quicker than you previously thought.
If you’re worried about your spending habits, it’s time to work out what you can cut back on. This could be as simple as cancelling a gym membership you don’t use or by taking a packed lunch to work and keeping a running record of where your money is going. You can do this by using the free online budget planner by the Money Advice Service, downloading a smartphone app or jotting it down on paper. Don’t lose sight of your bank balance. After all, contactless payments are not free money.
We’re not suggesting you work two jobs, but committing to one additional source of income with the intention of saving it would most certainly boost your financial stability. Babysitting once a month, taking your elderly neighbour’s dog for a walk and even selling unused items such as books and clothes all goes towards meeting your savings goal one coin at a time.
Read our article ‘How to be super savvy when it comes to saving money’ for saving tips you might not have thought of.
For a full listing of our current savings accounts, click here.