Young adults ‘downsizing’ lifestyles as living costs rise

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Research shows that adults over the age of 55 are more likely to report “downsizing” their lifestyle or spending.

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A survey of 2,000 people across the UK in September found that almost one in five (20.2%) under-35s are doing so, compared to 14.5% of those over 55.

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Young adults are also nearly twice as many over the age of 55 to say they are using credit cards to help ease living crises and feel stressed about budgeting.

According to Starling Bank research, one in seven (14.8%) under-35s said they are using a credit card for help, compared to one in 14 (7.2%) out of 55.

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Nearly half (45.2%) of under-35s feel anxious or stressed about budgeting, compared with a quarter (22.9%) of those over 55.

It is clear that young adults are trying to protect themselves by taking a proactive approach to money management through the sacrifices they are making and financial choices.

The survey found that more than a quarter of young adults (27%) are making major purchases like car or home renovations, and a similar proportion (26%) are postponing vacations.

While most people are being hit by the cost of living crisis, the findings suggest it is more acute for young people. Among those respondents who set personal budgets on a regular basis, it generally exceeded £92 a month, compared with £108 for those under 35 and £64 for those over 55.

Starling Bank has launched a free budget planner online tool to help people identify and understand their monthly spending.

Helen Byrton, Chief Banking Officer, Starling Bank, said: “The cost of living crisis is forcing all of us to look more closely at our personal and household finances, and it is clear that young adults are taking a proactive approach to themselves. Trying to save money through the sacrifices they are making and financial choices.

“Yet when it comes to budgeting, our research tells us that it is the missing details in everyday spending that often result in unexpected costs that are more difficult to plan for.

“We’ve built a tool that can help identify all outgoings to avoid expenses like birthdays or insurance renewals for loved ones that come in as an unpleasant surprise.”

Credit: www.standard.co.uk /

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