‘Committed young Britons’ saving responsibly for emergencies and home deposits

Young adults, and particularly young males, are motivated to save strongly and have mature goals, according to new research.

NS&I’s Savings Survey reports that young males (aged 25-34 years) are among Britain’s most committed savers, putting aside an average of £104 per month, which stands well above the national average of £88.

Those surveyed in the 16-24 year old category are putting almost 8% of their monthly income into savings accounts, a higher proportion than any of the categories between 25 and 65 years.

Young adults are also strongly motivated by goals, including financial security and home ownership. The 25-34 age category showed that 47% see saving as important for a deposit, while 23% admit saving in case of emergencies, almost as many as those saving for a holiday (25%).

The importance of goals is conclusively demonstrated. Almost 40% of men aged 16-34 have a savings goal compared with just a quarter of the country at large. The survey indicates that those with a savings goal save 45% more each month.

John Prout, NS&I savings spokesperson, spoke of his delight at the mature saving habits of young people, and suggested that targets are an effective way to manage savings.

"We are delighted that so many young people are mature beyond their years and saving responsibly. Setting specific targets is a good way to stay motivated, and even if it's only a small amount being set aside each month the savings soon mount up. If you're struggling with your finances, January is a great chance to start afresh and set achievable goals to work towards over the coming year."

NS&I caused a stir last year with its split from the Post Office, but its inflation-linked bonds have proven very popular as savers look to secure themselves against real-term losses due to rising prices.

Are you a young adult looking to invest in a high performing savings account? Which4U lists competitive savings accounts, and variable and fixed-rate ISAs for regular savings.

Kate Guthrie