Generation Z is facing a savings crisis, according to the latest findings from financial company Aldermore.
And the lender claims that what it calls “sky-high rent” is part of the problem.
Researchers and popular media generally agree that the Generation Z term embraces those born between the mid-to-late 1990s and the early 2010s (roughly 1997 to 2012).
Aldermore claims that 18% of them have no financial safety-net, with a quarter of them actually reducing the amount they save over the past 12 months. Those that did previously save are now putting £350.50 less away than they did in the previous year.
Money worries are taking their toll with 4.4 million (41% of Gen Z) losing sleep over their lack of savings. Many are even avoiding checking their bank balances altogether (43%).
However, despite the struggles, over half (51%) of Gen Z savers feel optimistic about their financial future as inflation starts to ease.
Alex Myers, head of savings at Aldermore, says: “The financial pressures on young people today are undeniable, making it harder than ever to build a savings cushion. With rising costs eating into disposable income, many are left feeling powerless over their finances. But even small, regular savings can create long-term security. Whether it’s setting aside a little each month or using tools to build better habits, taking control now can make a big difference in the future.”
Aldermore spoke with some 3,000 people for this survey.
This article is taken from Landlord Today