We can finally see a light at the end of the tunnel with the end of lockdown and the vaccination campaign being rolled out at pace. With bars and restaurants, sports venues and more opening their doors and welcoming more people back, it’s no wonder we’re feeling positive about more than just improved social lives. In fact, our brand new quarterly Money Management trends report confirms that UK consumers feel optimistic about their financial future.
We asked over 1,000 people in the UK about their personal finances both now and in the future, and over one in three (34%) think their financial situation will look better a year from now. Just 15% think they’ll be worse off, while half believe their financial situation will stay the same. What’s more, the younger generations are the most optimistic about their financial futures, with two thirds (64%) of 18-25 year olds and half (51%) of 26-35 years old thinking they will be better off next year.
No, younger generations don’t spend all their money on avocado toast.
We’ve all had enough of the misconception that young people are irresponsible and disengaged when it comes to their money. It’s simply not true! At Klarna we like to stick to the facts. Our data shows that younger generations actually have a tight grasp on money management. In fact, four in ten (39%) 18-25 years old planned to save more last month, while only 7% of those who are 46+ thought they’d put more money away. Younger generations also pay closer attention to their savings, with around three in five 18-35 year olds managing their savings a few times a month.
And when it comes to putting money away regularly, on the whole we’re pretty good at saving in the UK compared to the other nine countries in the report! The vast majority (73%) of us put money in a regular savings account. However, when it comes to growing assets through investing, we narrowly missed out on coming last. Just a quarter (26%) of us invest here in the UK, that’s only one per cent more than Australia.
Interested to know more? Check out our quarterly Money Management trends report and stay tuned for the next one!