The younger generation is more inclined to invest in a post-COVID world according to new research.
According to the research results from OneFamily, a financial services provider, most young people especially between the ages of 18-30 are more inclined now to save more now than they would have one year ago. This survey showed that this was the opinion of 56% of people in that age bracket. In the face of the pandemic, more of these people have become more financially aware. Another percentage 38% according to the same research opined that they would be more inclined to put in money in financial assets like stocks and share-based investments.
This financial cautiousness of most young people stemmed from the realization that they were more likely to be laid off work, given a temporary leave of job or have had to look for a second job in the last twelve months compared to any other age-based demographic.
In the past year, young people below the age of 30 were able to add £1,480 to their savings on average. Not everyone in that age range saved as about 9% were shown to have not saved in the past year while about 13% were shown to have not saved up to £1,480.
The reason for the plan to save is centered around certain needs such as buying a home, saving for education and saving for a wedding. Where 13% are doing so for a home deposit, 11% are saving for a wedding and 16% have education as their reason.
“It’s been a tough time for all of us, so it’s understandable that the generation that’s been hit hardest is now more cautious about spending and are determined to build their savings”, opined Paul Bridgwater, head of investments, OneFamily
He goes further to say that taking precaution against future occurrences such as pandemic, recessions and employment is normal for the under 30 age bracket especially in the face of so much unpredictability.
People under the age of 30 have also prioritized the safety and future of the ecosystem and they show this by not using their money to fund companies that are doing damage to the environment. They make this stand even with the pressure building up.
According to Bridgewater, most young people became more inclined to save for a home after living with their parents or in a rented space that they could not make a permanent residence in the past 12 months. The consideration of using the 25% government bonus on a climate friendly Lifetime ISA might help to boost their savings pot whilst also appealing to their environmental ideals.
He goes further to say, “Meanwhile for those not looking to save specifically for property or retirement, a climate friendly stocks and shares ISA could help them to build their savings nest-egg at a time when interest rates are at a historically low level”