Why 16 to 24-year-olds are putting their parents to shame when it comes to saving

Those aged 16-to-24 are the most savings-savvy age group, with 85 per cent having a savings account.

Only four in five 45-to-54-year-olds have one, while just 82 per cent of over-55s do, a HSBC poll reveals.

Just under half of young savers put away at least 20 pc of their monthly income, compared with 12 per cent of 45-to-54-year-olds.

But under 24-year-olds are the most likely to dip into their pot. 

They make an average of three withdrawals a year and more than one in five use it to cover everyday living expenses.

On the money: Just under half of young savers put away at least 20% of their monthly income, compared to just 12% of 45- to 54-year-olds

The nation’s top savings goals are an emergency fund, travel, supporting family and home improvements. 

But one in five people don’t stick to their goals and one in ten have not set any.

Households can build savvy habits with HSBC’s new banking app feature Savings Goals. Customers can select short to medium-term goals and set a target amount.

Pella Frost, of HSBC UK, says having a goal makes it easier to save. 

‘Before opening a savings account, we recommend you review your budget so you know how much you can afford to lock away and for how long. 

By locking your money away for a set period at a fixed interest rate, you can develop a healthy savings habit.’


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