Young earners are fuelling a spending boom as they spend £20 billion of items they "can’t go without."
The majority of 18 - 29 year olds do not class restaurant meals, taxi fares and trendy coffees as luxuries. An astounding two million of those surveyed said they buy at least one Starbucks coffee a day and 2.5 million will use a taxi at least once a week, rather than using public transport. One million young people would rather buy their breakfast than make it at home.
With all this spending no wonder one-third feel they are not able to save any money.
The survey conducted by Alliance & Leicester Savings and Investments found that if these young spenders reduced the amount of coffees they buy, as well as the gastro pub lunches they could save up to £20 a week. This means a saving of £1000 a year.
Old phrases such as "Look after the pennies and the pounds will look after themselves," are unknown to many youngsters. Only 20 per cent of 18 – 20 year olds had heard the phrase compared to 41 per cent of those over 50 years. Another popular old phrase "Waste not want not," was known by 30 per cent of the youngsters compared to 54 per cent of the over 50’s.
Mike Woodward, of Alliance & Leicester said, "Perceptions of what we need to buy versus what we could cut back on have been influenced by our busy working lives and a sense of urgency compounded by phrases such as ‘You only live once’."
However consumers are not willing to reduce the amount they spend. Some 22 per cent would be willing to sacrifice anything and one in six think savings are something for the future.
Mr Woodward added, "It’s important people continue to enjoy themselves but perhaps consider it they could make some minor changes to their lifestyle. The savings could really add up."
Young people spend billions treating themselves
Young people spend billions treating themselves
Mon, 28 Nov 2005
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