A recent study by Perkbox surveyed 2,000 adults aged 21-38, revealing that over half of young Brits are living ‘hand to mouth,’ with 41 per cent of their income dedicated to rent, mortgage, and bills, and an additional £160.71 on food and groceries monthly. Despite these financial strains, eight in 10 young Brits consider themselves ‘good’ with money.
Ashish Sampat of Perkbox noted the unique financial challenges faced by millennials, emphasizing their increased student loan debt and higher house prices compared to previous generations. Sampat acknowledged that these challenges inevitably impact their savings.
The study highlighted spending patterns, indicating average monthly expenditures of £55.41 on pub outings, £39.86 on clubbing, and £42.65 on gambling. Additional costs included £43.08 for streaming services, £47.87 on gadgets or tech, and £48.97 on dining out. Personal appearance was also prioritized, with £65.18 allocated to clothes and £43.11 to fitness-related activities.
A noteworthy shift towards a cashless society was revealed, with seven in 10 young adults preferring card transactions. Bargain hunting is a common practice, with individuals spending an average of 25 minutes searching for deals before making a purchase. Furthermore, 70 per cent of respondents own loyalty cards, averaging five per person.
The study highlighted evolving consumer preferences, as 50 per cent of millennials expressed a desire for loyalty cards linked to smartphones, emphasizing the need for highly personalized and on-demand experiences. Respondents also displayed a growing preference for discounts from local businesses (30 per cent) over those from high street chains.
Privacy and trust in online transactions were explored, with 68 per cent expressing confidence in data security. In response to these findings, Perkbox is introducing card-linking technology, aiming to connect employees with local businesses, providing easy access to perks with a simple card swipe at the point of sale.
As the financial landscape for young Brits evolves, these insights into spending habits, preferences, and challenges offer a valuable glimpse into the economic realities shaping a generation navigating unprecedented financial pressures.