Over half of young Brits are living ‘hand to mouth’, according to a new study.
Researchers who polled 2,000 adults aged 21-38 found many would struggle to get by if they were to find themselves out of work suddenly.
41% of income being spent on housing
According to the data a whopping 41 per cent of their income is spent on rent or mortgage and bills, while another £160.71 goes on food and groceries every month – that’s £1,928.52 in total over the course of a year.
Despite this eight in 10 young Brits believe they are ‘good’ with money.
‘Broke millenials’ doing their best to save, but have bigger problems than previous generations
The study was carried out by Perkbox to launch its new card-linking technology. Ashish Sampat of Perkbox said:
“Despite the negative stereotypes about ‘broke millennials’ many do try their best to save.
“The reality is that they have bigger problems to face compared to previous generations.
“They shoulder more student loan debt and face house prices that are far higher than their parents did at the same age.
“It’s no surprise then, that they inevitably struggle more with savings.”
What else do young people spend their income on?
On average, those polled will spend £55.41 down the pub each month, £39.86 will go on clubbing and £42.65 will be spent on gambling.
They will also pay out £43.08 to watch streaming services, £47.87 on gadgets or tech and £48.97 on dining out.
Appearances are also important as they shell out £65.18 on clothes and £43.11 on keeping fit.
How do young people pay for goods?
Researchers also found that most young adults surveyed – seven in 10 – pay for their items using cards rather than cash, and shop around for good deals – typically spending 25 minutes looking for bargains before making a purchase.
Their financial savviness doesn’t end here either, with 70 per cent owning a loyalty card – typically five of them.
It also emerged that when it comes to privacy, a whopping 68 per cent per cent trust that their data is secure when buying online.
What would they like to see from retailers?
The research, carried out by OnePoll, also found half of millennials would like to see retailers introduce loyalty cards which are connected to their smartphone.
In addition to this, 30 per cent of those polled would prefer discounts from local business in their area, rather than those from high street chains.
Loyalty to local businesses
Ashish Sampat added:
“An attractive bargain must go beyond just making offers available to users. Millennials expect highly-personalised, easy to find, on-demand experiences and furthermore, authenticity is a huge thing for them, hence their value for local businesses.
“Spending an average of 25 minutes looking for a bargain is way too excessive. “That’s why we’re so excited about introducing card-linking technology to our platform.
“It will enable us to connect employees with their favourite local businesses and get access to thousands of perks with just a swipe of the linked payment card at the point of sale.
For more information on how card-linking tech works and why millennials will love it, click here.
Content provided by SWNS Digital