Shifting Focus from Long-term Savings to Short-term Goals
Recent studies reveal a significant shift among young adults aged 18 to 35, as many are opting for short-term financial ambitions rather than traditional long-term savings goals. A poll conducted with 2,000 participants indicated that 50 percent are focusing on six to eighteen-month plans while only 40 percent stick to longer-term objectives, such as saving for a house deposit.
Travel as a Top Priority
Among the short-term goals, travel has emerged as the top priority for 39 percent of respondents. This trend shows a growing appetite for experiences over ownership, with many young adults eager to explore new destinations.
Businesses and Health on the Agenda
A further 24 percent aim to save money to launch their own businesses, while others are allocating funds for wellness retreats (20 percent), tying the knot (15 percent), or purchasing an electric vehicle (13 percent). Additionally, 12 percent are saving up for the festival season, demonstrating a clear preference for spending on leisure and immediate gratification.
Nurturing Healthy Savings Habits
The research commissioned by NatWest aims to encourage young people to establish healthy monthly savings habits through initiatives like the ‘Couch to Cash: the £5K Challenge.’ Moreover, NatWest has partnered with Team GB Olympic gold medallists Alistair and Jonny Brownlee to offer financial guidance and tackle common barriers facing young savers.
The Future of Young Savings
This shift in financial priorities may indicate the changing landscape of savings and investments among younger demographics, prompting banks and financial institutions to adapt their services to meet evolving needs.
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