From Veganuary to Fruganuary
Whether it’s smashing avocado on toast or being too woke, millennials get roundly criticised by other demographic groups. But there’s one way millennials outperform all other age groups: savings.
According to Zopa, those aged 24 to 39 are more successful at cutting back their spending both before Christmas and after. More than a third of all Brits feel the pinch in January and 16% say that they really struggle to make it through to payday. They cite the usual suspects: too much spent at Christmas, higher energy bills and being paid early in December.
Almost half of millennials (47%) have responded by taking reasonable measures to offset January’s pain, versus 31% of the British population. Those measures are mostly small steps. The top ten more effective are:
- Reducing Christmas spending
- Staying with family over Christmas
- Going out less often
- Not going out altogether
- Not drinking (Dry January)
- Eating vegan food
- Not buying take-aways
- Taking packed lunches to work
- Not buying clothes
As a result of these changes, millennials saved an average of £568 in this period. All told, this generation saved £3.5bn. If all Brits made these small changes, each person would save £391 in January alone. Thanks to their frugal habits, almost one in five (18%) of millennials say that they have even more money in January than normal, versus 6% of everyone else.
How to save
While almost a third of Brits controlled their seasonal spending, they only managed to save an average of £204.88 (spending less over Christmas: £75.27, not going out altogether: £68.52, Dry January: £61.09).
While 89% of millennials say that they want to continue with their frugality throughout the year, these spending habits last an average of five months. If the average Brit acted like a millennial but stuck it out for the entire twelve months, then the savings would be £4,692 over the year, and cumulatively over the decade, £46,920 (want to know how to save £5k without breaking a sweat? click here). With this kind of savings habit, millennials should be looking at investing for the long term — to find the right investment platform for your circumstances, click here. If automated investment floats your boat, use our robo-calculator.
You can almost hear the response next time a joke gets made at a millennial’s expense: Okay Boomer, show me your bank statement.
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