Martin Lewis advises against children’s savings in Premium Bonds
Make the most of your money by signing up to our newsletter for FREE now
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Statistics from the Office of National Statistics have shown that the number of young people putting money into their savings accounts has decreased by 12 percent, with 53 percent of this age group having no savings at all. Alongside this, the average amount saved by people in their 20s was £1,600, over £5,000 less than the UK average.
As a young adult, it is difficult to put away savings every month when getting income in the first place is the issue.
So how can a young person save enough to get themselves fully in charge of their financial future?
Much like fad diets, cash diets are short-term periods wherein one avoids spending any unnecessary money, whether it be for a week or four months.
Saving money doesn’t mean not enjoying what life has to offer while you’re young (Image: GETTY)
This slows down impulse purchases and can help one realise how much they spend on unnecessarily, forming good spending and saving habits.
Entertain at home
Majority of expenses for this age group lies in activities, restaurants and drinks enjoyed with friends.
However, being on a budget doesn’t have to put an end to this, simply by entertaining at someone’s house or in a public area where everyone can contribute to the food, drink and fun can see a lot of cash left over at the end of the night.
Cut down on the pints
While not everyone’s favourite choice to save money, the average UK household spend over £800 a year on alcohol.
Cutting it out entirely can see all of this building up in a savings account, and alternatively just avoiding going out to drink can half this expense.
Shop sales and second-hand
Savings: cutting back on alcohol and buy second-hand goods can see a lot of money saved (Image: GETTY)
This is especially poignant when it comes to decorating ones first home, buying second-hand furniture can massively help savings and avoid self-indulgent tendencies, like purchasing far too many decorations for one wall to hold.
Additionally, one of the largest single expenditures of young peoples budgets is clothing, by having thrift instead of brand name clothing can see savings rack up monthly.
Do research before travelling
Traveling and having the feeling that the world is at your feet is arguably the greatest aspects of being young, but before travelling do thorough research.
Budget accommodations, destinations and activities are often off the beaten track so not only will this uncover an entire new set of travel ideas and dreams but also save some on the travel budget.
Again, not everyone’s ideal way of saving money but in a true financial-crunch, using protein shakes as meal replacements can see hundreds of pounds saved each month.
Avoid credit cards
Credit cards can be detrimental to budgets and savings goals, simply knowing that one can spend as more than they have is likely to make them do exactly that.