A recent survey conducted by Zopa, the UK’s first peer-to-peer lender, found that Generation Z – those aged between 18 and 22 – is taking control of its finances; 35% of those polled had savings of £1,000 or more and two-thirds said that they believe that saving little and often is key.
Zopa’s research examined views towards both finances and savings from those in Gen Z as well as millennials – aged between 23 and 38 –finding that both generations were prioritising saving; 52% of millennials had squirreled away more than £1,000.
In its study, Zopa interviewed 1,500 individuals that were either working, earning minimum wage or above, or university students, and its results contradict commonly held belief that young people are profligate with money and aren’t preparing for the future; 40% Gen Z said they believe that putting money aside is fundamental.
With Lloyds Bank’s ‘M word’ advertisement currently proving something of an ear-worm, respondents were also specifically asked about their willingness to discuss money with family and friends openly; 73% of millennials and 70% Gen Z said they were happy to talk about their finances in general.
It is difficult not to empathise with either generation when it comes to tuition fees and the current student loan regime because they appear to have been clobbered; unsurprisingly, of those that had gone through further education, just 20% of Gen Z and 15% of millennials said they saw university fees as manageable.
As well as looking at their savings regime, Zopa looked at the ways in which they access their bank accounts; 70% of Gen Z said they checked in on their finances nearly every day, compared to 61% of millennials.
its results contradict commonly held belief that young people are profligate with money and aren’t preparing for the future
Neither generation is likely to be uncomfortable with new technology, but having grown up surrounded by tech, it is no surprise that Gen Z has embraced mobile banking more than other generations ; 63% keep updated on their finances using dedicated banking apps on their mobile phones, compared with 60% of millennials who were more likely to use online banking hubs, via a laptop or computer, rather than through their mobile.
Even at the upper end of the age range, millennials could hardly be described as crusty, but apparently they would rather stick to traditional methods with 16% responding that they would rather going to a branch to bank, compared to just 8% of Gen Z.
In announcing its findings, Andrew Lawson, chief product officer at Zopa, said: ‘Our latest research shows that the younger working generations are setting a new agenda for their financial futures.
‘With Gen Z showing they are the savviest when it comes to financial control, it may be time to wave farewell to the idea of the Bank of Mum and Dad.’
Lawson added: ‘It’s unsurprising that there are some similarities and differences between Gen Z and Millennials when it comes to their savings and finances, but it’s clear that Gen Z has taken the crown of most financially savvy generation.’
‘Getting a grip on your finances at any age is crucial to feeling positive and in control of your financial situation, which can go a long way to feeling good about money.
‘As more and more tools come to market to help people stay in control of their money, the generations that are more open to trying new apps and features are getting better and more adept at managing their finances.’