YOUNG adults are ditching long-term savings goals in favour of travelling, wellness and crypto.
A poll of 2,000 18–35-year-olds found more have these six-to-18-month money ambitions (50%) compared to longer ones (40%), like saving for a house deposit.
Travelling is the number one target for this group in this timeframe (39%), followed by 24% hoping to put enough money aside to start a business.
Others are putting money away to allow them to go on a health and wellness retreat (20%), to tie the knot with their other half (15%), and get an electric motor (13%).
While 12% are even squirrelling cash away for the upcoming festival season.
Medium-term goals 18-35 year olds are saving for
- Travelling
- Starting a business
- Home decor
- Investing in the stock market
- Health & wellness retreat
- Luxury travel experiences
- Investing in crypto
- Wedding
- Buying an electric car
- Attending festivals
Almost all (97%) of those who have savings make use of different pots, with 45% having three or more.
While 72% of those with goals believe they would benefit from new savings strategies to help them reach their aims.
But only a third (32%) have used their Individual Savings Account (ISA) 2024/25 tax year allowance, although 35% who haven’t intend to do so before the early April deadline.
The research was commissioned by NatWest, to encourage young people to build healthy monthly savings habits with Couch to Cash: the £5K Challenge.
The bank has also partnered with Team GB Olympic gold medallists Alistair and Jonny Brownlee to provide helpful tips to tackle the key barriers to saving.
Mo Watt, a savings expert from NatWest, said: “47% of young people today believe their savings goals differ from those of their parents at the same age and our research sheds more light on this generational shift in attitudes.
“We know that regular savings – no matter how big or small – can add up to make a big difference down the line.
“The challenge aims to provide useful tips for those who are looking to get started or want some additional structure to their savings journey.”;
Highlighting the different views from previous generations, nearly half (47%) of those believe their mums and dads would have saved a greater percentage of their income towards long-term goals.
Despite this, 74% of those with long-term savings goals would like to be saving more towards their long-term saving goals.
Alistair and Jonny Brownlee's tips to tackle the key barriers to saving
- Focus on your future self – Keep your long-term goal in mind to stay motivated.
- Visualise your goal – Picture what you’re saving for to help stay on track.
- Take small steps – Set achievable short-term goals and celebrate progress.
- Try loud budgeting – Share your savings goal with others to stay accountable.
- Celebrate your wins – Acknowledge milestones to keep yourself motivated.
- Build small habits – Consistent saving habits can lead to big results.
- Automate your savings – Set up a regular payment to grow your savings effortlessly.
- Use Round Ups – Automatically round up purchases and save the spare change.
- Boost your savings – Look for cashback, rewards, or perks to top up your savings.
- Set a timeline – Give yourself a deadline to stay focussed on your savings goal.
