New figures from the Office for National Statistics have shown that over half of people in their 20s have no savings.
The ONS revealed that 53 percent of 22-29-year-olds have no money saved in a savings account. This is compared to the 41 per cent from 2008 to 2010.
The proportion of people in their 20s who own a home has also fallen by ten percent between 2008 and 2017. The number of people in their 20s owning a home has fallen from 37 percent to 27 percent.
Rachael Griffin, tax and financial planning expert at wealth management firm Quilter, was not surprised by the drop in homeownership given the drop in savings.
“Add this to a long period of steadily increasing house prices and you can see how difficult it is for young people to get a foot on the housing ladder, even if they are eating avocado on toast for breakfast,” she said.
Griffin took the ONS figures to highlight the importance of financial education in UK schools.
“Boosting the savings culture in the UK is of paramount importance. Younger generations need to have it instilled in them that having a healthy savings account is essential,” she said.
“Research shows that, like many behaviours, our attitudes to money are shaped at a young age. The Money Advice Service has shown that many key financial habits are set by the age of seven. Therefore it’s incredibly important that the government gives thorough consideration to the introduction of financial education onto the primary school curriculum.
“Doing so will help tackle financial illiteracy and show children early on the merits of saving, and hopefully avoid a situation where we find in another ten years a generation of 18-29-year-olds with even less in their savings accounts,” she added.