Peer-to-peer lending company Zopa has revealed that “Gen Z” – the next generation has its finger firmly on the financial pulse with over a third (35%) having more than £1,000 in savings already.
With the FCA reporting that one in 10 UK adults have no savings at all, Zopa’s findings contradict the common misconception that Gen Z and younger generations in general aren’t prioritising saving for the future. Underestimating the younger generations’ appetite for saving is debunked by this recent research, as over two thirds of Gen Z believe that saving little and often is key.
Another recent FCA report found that compared to baby boomers, mortgage, student debt and family spending will limit the ability to save throughout working life for the next generations.
However, Gen Z is already proving that they are making saving a priority from early on by putting away a significant amount of money in their younger years. This is also strengthened by the mentality of 40% of respondents believing that saving is fundamental for the future.
Generation Z is the demographic after millennials typically born in the mid-1990s to mid-2000s.
“Our latest research shows that the younger working generations are setting a new agenda for their financial futures,” said Andrew Lawson, chief product officer (CPO) at Zopa.
“With Gen Z showing they are the savviest when it comes to financial control, it may be time to wave farewell to the idea of the Bank of Mum & Dad.”
Zopa asked respondents specifically about their openness to discuss money with family and friends, and a staggering 73% of Millennials and 70% of Gen Z were happy to talk about their finances in general.
“It’s unsurprising that there are some similarities and differences between Gen Z and Millennials when it comes to their savings and finances, but it’s clear that Gen Z has taken the crown of most financially savvy generation,” Andrew Lawson continued. “Getting a grip on your finances at any age is crucial to feeling positive and in control of your financial situation, which can go a long way to feeling good about money.
“As more and more tools come to market to help people stay in control of their money, the generations that are more open to trying new apps and features are getting better and more adept at managing their finances. These tools aren’t just for the younger generation though, you can become financially savvy at any age.”
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