Saving for your life: British millennials’ money troubles

British millennials’ money troubles are often put down to buying too much avocado toast or lattes to fuel our Instagram feeds.

While this might be what people your parents’ age are blaming it on, it isn’t the case. A new study has found that millennials in the UK are the second worst off in the developed world behind Greece. Unfortunately, austerity means that people below 30 these days are nearly twice as worse off financially than their parents were at the same age.

It’s getting harder to find a full-time job, there are less jobs going, and incomes are lower due to the pay squeeze, leaving no option but to work multiple part-time jobs and save every penny you can.

21-year-old Cameron Frew has just finished university, but has gone full-time at his weekend job because he can’t afford to look for a job that involves his degree. “If you’re lucky enough to pursue your passions without having to work concurrently, then great. But I’m not in that boat,” he says.

“I can’t afford to potentially hunt for jobs in my industry for months without something to fall back on – at this stage we’ve all got to look after ourselves, and if that means not immediately getting the job I want, then so be it.”

HOME SWEET HOME

Owning your own home could also be a long way off as this decrease in income means it could take years to save a deposit. Home ownership for millennials now is almost half of what is was when your parents were this young.

“House prices are rising and we just have to adapt and make the most of the situation,” says Alan Ironside, who is also 21-years-old. He can’t see himself owning his own home in the future. “The big worry for me is landlords taking advantage of you while renting. It’s a culture that needs to change in the UK.”

However, it’s not all bad. Banks like Barclays have started to offer 100 per cent mortgages (which means you don’t need a deposit) to try and raise the number of young people buying their first home – which is great news. Maybe things are finally starting to turn around?

SAVING

A lower income means that saving can be difficult, whether it’s for a house deposit or just a Nandos. Raiding the old piggy-bank might seem like the only option, but there’s simpler ways to save.

Saving apps can be a great way to keep track of where your money is going and some are completely free – bonus! Apps like Toshl show you how much you’re spending each month, where you’re
spending it and how you can save. If seeing your balance disappear is too scary a prospect, try an app like VoucherCodes. Find vouchers, discounts and deals to save money on the things you buy regularly and save the extra money you’d normally spend.

Whether you’re comfortable in a full-time job, still in school or you’re struggling to pay rent, one thing’s for sure, avocado toast isn’t to blame for the problems millennials are facing.

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