Young Brits favour modern investments and YOLOing over traditional saving goals

Young people are prioritising medium-term investments, such as starting a business and travelling, over long-term goals such as saving for a house deposit.   

A new study of 2,000 young people aged 18–35, commissioned by NatWest to launch a new youth-focused savings challenge, has revealed a notable shift in the savings aspirations of young people when compared with those of their parents. 

It found that this group are more likely to prioritise saving towards travelling, attending festivals and wellness, leaning towards spontaneous life experiences over longer-term financial goals.    

The study found that while conventional savings goals are still part of young people’s financial picture, priorities have shifted.

Twenty-nine per cent of young adults who are saving towards long-term goals are allocating 20 per cent or less of their savings towards this, with 50 per cent focusing on medium-term goals. 

NatWest is encouraging young people to build healthy monthly savings habits by launching Couch to Cash: the £5K Challenge.

To accompany the challenge, Team GB Olympic gold medallists Alistair and Jonny Brownlee, have created a video series featuring helpful tips to tackle the key barriers to savings, with the latest episode available now:

The top 10 mid-term savings goals for young people, are:

1. Travelling (39 per cent)  
2. Starting a business (24 per cent)  
3. Home decor (23 per cent)  
4. Investing in the stock market (22 per cent)  
5. Health & wellness retreats (20 per cent) 
6. Luxury travel experiences (20 per cent)  
7. Investing in cryptocurrencies (18 per cent)  
8. A wedding (15 per cent) 
9. Buying an electric car (13 per cent)  
10. Attending festivals (12 per cent)  

Mo Watt, Savings Expert, from NatWest, said: “47 per cent of young people today believe their savings goals differ from those of their parents at the same age and our research sheds more light on this generational shift in attitudes.

“At NatWest, we know that regular savings – no matter how big or small – can add up to make a big difference down the line. Couch to Cash: the £5k Challenge aims to provide useful tips for those who are looking to get started or want some additional structure to their savings journey. Our NatWest Savings Goal Tool can create a plan to help you achieve your goals, whether that’s in the short, medium or long term.”

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