One in five young people say their finances are out of control

26 Apr, 2019

24 Apr 2019 Research from financial wellbeing experts Neyber found that one in five young people1 in Britain admit that their finances are out of control.

It also uncovered that an alarming 70% of people under-34 need to regularly borrow, either to pay their monthly bills or deal with day-to-day living expenses, and that payday lenders are more commonly used by the young (8% of 18-24 year olds had used one, compared with no one over the age of 65).

What’s more, according to the Money Advice Service, 18% of young adults have borrowed money from a friend or a family member to pay for necessities like bills and 61% agreed that their life would improve if they could manage their money better.

Heidi Allan, head of employee wellbeing at Neyber, says: “Whether it’s job uncertainty and fluctuating wages as a result of zero hours contracts, university loans or increasing property rental costs, many young people are seeking out unnecessarily expensive loans and other forms of credit just to support day-to-day living. One of the many impacts is that they aren’t able to create savings – for a buffer when they need extra financial support or a deposit on their own home. Good financial wellbeing is far too remote for far too many young people today.

“Employers can help. Being paid for the first time is one of life’s many milestones and the beginning of a lifelong relationship with earning, saving and spending money. Getting that relationship right from the start is the basis for good financial wellbeing, and employers have a unique opportunity to help young employees when they first join the workforce.