10 ARTICLES IN 10 DAYS: DAY 1

12^th September 2016: Investment and a stable future VS material goods and memorable experiences

The millennial generation have recently had a bashing in the press, due to statistics released about their spending habits. RateSetter revealed that 62% of 18-30 year olds admitted that they are ‘clueless’ about money and 26% said that they do not save or invest any of their income at all.

But they really be blamed for this lack of enthusiasm when it comes to investing for their future? Interest rates have plummeted over the last 35 years, with return rates becoming more and more pathetic. Average house prices have also sky rocketed, increasing by almost 150k in the last 25 years.

It is no surprise that people are more likely to live for the moment, choosing to spend their hard earned cash on experiences and disposable materialistic items. The survey found that 60% of young people are stashing their cash away for holidays and traveling abroad and a further 60% admitted prioritising their cash-flow on going out, having the latest fashion items and luxuries.

Sam Price, a post-graduate student said “It seems almost impossible to get myself on the property ladder, so I see no point in saving. The cost of renting is just as bad; it is much easier living at home with my parents, spending less on board and more good times with my friends”.

I think that it is easy to see that young people have not simply decided to favour experiences over future investment. Instead, they feel that owning property and being able to save enough money for the future is simple unattainable.

Image credit: http://i.dailymail.co.uk/i/pix/2010/10/25/article-1323620-0930B4E8000005DC-989_468x286.jpg

Sources of information:

Jane Denton. (2016). You Only Live Once generation is 'clueless' about money: Two-thirds of millennials admit to splurging on nights out and fashion Available: http://www.thisismoney.co.uk/money/news/article-3775718/You-Live-generation-clueless-money-Two-thirds-millennials-admit-splurging-nights-fashion.html. Last accessed 14.09.16.

Olivia Rudgard. (2016). Stop trashing millennials for not saving enough money – they'd love to, if only they could. Available: http://www.telegraph.co.uk/personal-banking/savings/for-gods-sake-young-people-would-love-to-save-money--they-just-d/. Last accessed 14.09.16.