Millennials have more pressing savings goals than a house deposit, research from TopCashback has found.
According to the cashback provider’s poll of 1,460 people in the UK born between 1977 and 1995, saving for a housing deposit is only the fifth on the list of their financial goals.
Top of their savings wish list is saving for an emergency fund. After that comes a ‘savings cushion’, financial freedom, money to travel, then a house deposit.
Interestingly, two in five 20- and 30-somethings rate financial freedom– a vague concept – higher than saving for a house deposit which is a much more concrete wealth-building idea. Only just over a third (35%) say that saving up for a deposit for their first home is a priority.
It is no surprise that saving for an emergency fund is the number one priority (51%), especially with the changing nature of work and economic uncertainty. But it would appear millennials are generally not saving to start a family. Only one in seven (14%) says their savings goal relates to having children, a surprisingly low figure. Even fewer – 13% – are saving for a wedding.
Here’s how millennials savings goals breakdown:
Millennials’ savings goals
1. An emergency fund (51%)
2. A savings cushion (43%)
3. Financial freedom (40%)
4. Money to go travelling on longer trips or to holiday regularly (37%)
5. A deposit to buy a house (35%)
6. A planned holiday (25%)
7. Pay-off mortgage (19%)
8. Buy a bigger house (17%)
9. Start a family (14%)
10. A wedding (13%)
Natasha-Rachel Smith, consumer affairs expert for TopCashback.co.uk, comments: “Our research shows millennials are being sensible with their money and thinking about financial security. However, the current economic climate, and a change in lifestyle – people marrying and having children later – means millennials are favouring experiences over possessions and have different financial priorities at this point in their lives.
“While it may be later in life and less of a priority than it was in the past, it is important for millennials to put money aside regularly and be savvy with their spending, so they are prepared when the opportunity to buy a property does arise.”