Those aged 22 to 29 years have become less likely to own a home, with the proportion of homeowners having fallen by 10 percentage points between 2008 and 2017 – from 37% to 27%
They’re also less likely to have money set aside. More than half (53%) of 22- to 29-year-olds had no money saved in a savings account or an Individual Savings Account (ISA) in 2014 to 2016, compared with 41% in 2008 to 2010.
Parents can help
Parents and guardians can play an important role in shaping their children’s financial attitude towards money as many teenagers mimic their parents’ behaviour. One way of setting the right example is by including your teenagers in some of your financial decisions, particularly as they reach their late teens.
Developing a savings habit
Learning about the importance of saving and only buying things which you can afford is an important part of adult life. Whether this means encouraging your teenagers to put aside a small amount every week to buy new shoes, or longer-term planning for a larger purchase, learning to save is a vital skill.If young people get into the habit of saving when they are young, they more likely to carry on through into adulthood.
Talk to them about saving and help them plan for bigger purchases like buying a car by putting aside regular amounts of money and helping them reach savings goals. For example, if your teenager would like to buy a car, you could show them how to set-up a standing order to their savings account each pay day. This will make saving automatic and make it easier for them to stick to their budget.
It’s never too early to start saving
It’s never too early to start saving and to think about a pension for your future, as you could have twenty years' or more retirement and you will need an income. The sooner you start paying into a pension, the easier your retirement will be.
A workplace pension is one way to provide an income.
As well as your payments, you could benefit from contributions from your employer and the government. Usually, the younger you are when you start paying into a pension the better. The money has more time to grow. Even if it’s only a small amount, the money you put away early in life can build up over time.