There tends to be a lot of criticism of Generation Y for spending on luxury items, be it avocado on toast for breakfast, lattes, iPhones or another festival or weekend city breaks. The logic would seem simple, spend less on luxuries and save more of you hard earned cash. But the figures actually suggest millennials are saving more than they used to and are simply faced with increasingly difficult-to-afford house deposits.
As an indicator of housing affordability, the house price-to-income ratio, and the “deposit gap”, both remain much higher than they have been for the past few decades. The study also shows that younger people are now spending a greater proportion of their income on housing rather than other household expenditure categories, such as food, alcohol, or recreation. Interestingly, the same survey of spending habits found that younger people (defined as younger than 35) saved more per week than older people, even when comparing families with children. This may however be due to younger people living at home for longer but it still indicates Millennials have no issues with saving money.
You are never too young or too old to start saving and Enable’s IFAs in Bishops Stortford can help you make a plan for investing your hard earned savings.
Source: https://www.theguardian.com/news/datablog/2016/oct/18/are-millennials-actually-bad-at-saving-or-are-houses-just-unaffordable
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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