- Young people are struggling to save enough money to buy their first home due to rising bills, with the majority (62%) of those wanting to save more pointing to increased cost of their weekly shop as a barrier. This rises to 70% in Scotland, 70% in the East of England and 67% in the East Midlands.
- Two in five (40%) 18-40 year olds who want to save more say it is difficult because their salaries have not kept track with inflation. This is particularly high in Wales (51%) and the South East.
- Two fifths (43%) of 18-40s wish they’d been taught about budgeting and financial matters at school.
- Inspiring Better Futures report highlights importance of financial inclusion as cost-of-living crisis continues to impact individuals and families.
Young adults are struggling to save enough money to buy their own home due to the increased costs of everyday expenses.
Of the 2,000 UK adults aged 18-40 surveyed by Opinium on behalf of OneFamily, almost four in five (79%) said they would either like to start saving or save more than they currently are. 62% of these people point to the rise of weekly food shopping costs as a barrier, with this rising to 70% in Scotland and East of England and 67% in East Midlands.
Two in five (40%) 18-40 years olds who want to save more said saving has become more difficult as their salaries have not kept track with inflation, rising to over half of people (51%) in Wales.
This year’s Inspiring Better Futures report by financial services company, OneFamily, highlights how vulnerable people with the least amount of resilience in their budgets are suffering the most as a result of the cost-of-living crisis, and that financial inclusion is needed to improve lives.
According to the Financial Conduct Authority1, there are more than 24 million adults in the UK who have one or more characteristics of vulnerability related to poor health, low financial capability, low financial resilience and significant life events.
These vulnerabilities can create an increased risk of financial exclusion, with one in four UK adults experiencing this at some point in their life, according to the Inclusion Foundation2. This can have wide-reaching consequences, such as falling into debt, not being able to withstand financial shocks like a drop in income and struggling to cope during a cost-of-living crisis.
The report outlines the need for more mainstream financial education from a young age, as two fifths (43%) of 18–40-year-olds wish they’d been taught about budgeting and financial matters at school.
CEO of OneFamily, Teddy Nyahasha said, “The communities in which we live and work are feeling the pain of the cost-of-living crisis as prices have been soaring this year. We want to stand up for individuals and families across all backgrounds, to highlight where exclusion exists and give a voice to the voiceless.”
CFO of OneFamily, Jim Islam said, “Financial inclusion and education are vital to give people the best chance at life and fulfil their potential. Whether that be getting on the property ladder or starting a family, making sure everyone has access to good financial knowledge and services, regardless of background, is so important.”
Regional breakdown of statistics*:
- The percentage of people who say they cannot save more than they already are because of rising food costs – Scotland (70%), North East (58%), North West (57%), Yorkshire and Humberside (62%), East Midlands (67%), West Midlands (53%), Wales (60%), East of England (70%), London (56%), South East (69%), South West (65%)
- The percentage of people who say they cannot save more than they already are because their salary has not kept track with inflation – Scotland (36North East (34%), North West (42%), Yorkshire and Humberside (39%), East Midlands (43%), West Midlands (32%), Wales (51%), East of England (39%), London (36%), South East (44%), South West (39%)
- The percentage of people who wish they had been taught about budgeting and financial matters at school – Scotland (42%), North East (37%), North West (44%), Yorkshire and Humberside (46%), East Midlands (45%), West Midlands (39%), Wales (43%), East of England (44%), London (40%), South East (51%), South West (45%)
(*Further breakdown by city available upon request, email rebecca.torricelli@onefamily.com)
References
1. Financial Conduct Authority
2. Statistics – The Inclusion Foundation
Notes to Editors
Jim Islam will take over the role of CEO of OneFamily (subject to regulatory approval) later this year.
Unless otherwise stated, all research has been conducted by Opinium, on behalf of OneFamily, between 17 February – 21 February 2023, among a nationally representative sample of 2,000 UK adults aged between 18 and 40.
About OneFamily
OneFamily is a member-owned financial services company that offers lifetime ISAs, lifetime mortgages, junior ISAs, child trust funds, bonds and over 50s life cover.
We have over 45 years’ experience of being a trusted provider of financial solutions, with nearly 2 million customers and over £5.5 billion in funds under management at the end of 2022.
We are the UK’s biggest child trust fund provider, holding over 25% of the market.
Supporting our members and their communities
At OneFamily, we’re owned by our members for our members – and doing right by them is at the heart of our business.
We don’t have shareholders to pay dividends to, so we reinvest our profits to provide quality products and services for the benefit of our members.
We think that financial products should be accessible to everyone regardless of how much money they have to invest. That’s why our products have low investment levels and minimum contributions, giving more people the opportunity to save regardless of their circumstances.
Inspiring Better Futures
Our Inspiring Better Futures vision underpins our commitment to doing the right thing at every level for our members and customers, colleagues and communities.
The Inspiring Better Futures vision is built on 3 pillars – Members and customers, colleagues and communities.
Our focus is on long-term sustainability, so we can continue to be relevant and impactful to our members and communities.
Access to education and training
The costs of further education and training can be a barrier to many young people and their families. This is why we offer OneFamily customers the opportunity to apply for a Young Person’s Education Grant of up to £250 – for someone aged 15-19 – to help meet these costs, when they would otherwise struggle without financial assistance. The grant can be used towards study materials, specialist uniform, travel costs or a laptop/tablet.
Applications are open throughout the year, and grants are awarded following a random computerised draw.
We’ve improved the lives of over 3,400 people through our individual grants since 2015.
Charity partnerships
Supporting our communities has been a key focus of ours for many years. We’ve established partnerships with local and national charities that champion access to education and improving life chances for people from disadvantaged backgrounds.
For more information on how we support our members and communities see:
Educational grants
Charity partnerships