Today’s 20-30 year olds are not the ‘lost generation’ they are widely thought to be, but instead play an active and considered part in planning their financial future, according to a survey by communications consultancy MRM.
The survey shows younger adults have begun to recognise the need to save earlier, prioritise debt repayments and give more thought to planning their financial future; with 80 per cent in possession of a savings account, 29 per cent paying into a pension and 35 per cent describing paying off debt as their ‘number one financial priority’.
Thirty two per cent feel ‘in control of their money and like to plan ahead’, while the vast majority (89 per cent) believe you should have begun to plan your financial future by 30.
While this is encouraging, says MRM, the findings also demonstrated a deep mistrust of financial services, with half of those questioned (50 per cent) actively becoming more vigilant about their personal finances because of the credit crunch.
Over half (52 per cent) describe family and friends as their biggest source of financial advice, with almost two thirds (63 per cent) placing financial advisers at the bottom of the list when it comes to seeking financial advice.
“While our findings indicate this demographic is savvy when it comes to money there is also a deep mistrust of the financial sector which needs to be addressed if we are to build on what look to be extremely promising foundations for financial ‘literacy’ and prudence,” said author of the report Sarah O’ Connell.
“Much media ‘noise’ has been made about putting a tag on other social groups in similar age brackets – leading to the ‘NEETs’, the ‘Boomerang’ generation’, even the ‘Yuckies’, but we have heard relatively little about this group, a young ‘middling’ generation – not students nor fresh graduates, but young adults in their first or second job, and thus at a crucial stage in laying good foundations for their financial future.
“The next step will be to find out how financial providers can reach out to younger people to bridge the gap between young people’s attitudes towards their personal financial planning and their actions to highlight what can and should be done to secure a healthy financial future.”
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