A recent survey has revealed that young adults are prioritising travel, wellness and cryptocurrency over long-term savings goals. The poll, which surveyed 2,000 individuals aged between 18 and 35, found that half of the respondents have short-term financial ambitions spanning six to 18 months. Almost all (97%) of those with savings utilise different pots, with 45% having three or more.
Travel is the top priority for this demographic, followed by 24% who aim to save enough to start a business. Other goals include setting aside funds for a health and wellness retreat (20%), saving for a wedding (15%), and purchasing an electric vehicle (13%).
The research was commissioned by NatWest, as part of their initiative to encourage young people to develop healthy monthly savings habits through their Couch to Cash: the £5K Challenge.
NatWest has teamed up with Team GB Olympic gold medallists Alistair and Jonny Brownlee to offer useful advice on overcoming the main obstacles to saving.
Mo Watt, a savings expert at NatWest, commented: « We know that regular savings no matter how big or small can add up to make a big difference down the line. The challenge aims to provide useful tips for those who are looking to get started or want some additional structure to their savings journey. »
Despite these shorter-term objectives, only 40% are saving for long-term goals such as a housing deposit. However, 74% of those with long-term savings goals expressed a desire to save more towards these objectives.
Three-quarters of those with goals believe they would benefit from new savings strategies to help them achieve their targets.
Yet, only a third (32%) have utilised their Individual Savings Account (ISA) 2024/25 tax year allowance, although 35% who haven’t plan to do so before the early April deadline.
Interestingly, nearly half (47%) of respondents believe that their parents would have saved a larger proportion of their income towards long-term goals.
