Milllennials believe their financial future is 'as good as parents'

Home ownership is a top priority for Millennials, the report found.
Home ownership is a top priority for Millennials, the report found.
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Six in ten Millennials optimistically believe their financial prospects are better or the same as that of their parents, a report has claimed.

A study found that the younger generation also has financial aspirations which could be seen as traditional, such as owning their own home and being financially independent, as well as building up a pot of “rainy day” savings.

This comes despite a commonly-held perception that those born between 1980 and 2000 are known as the “stagnation generation” and the first cohort in modern times to be financially worse off than the previous generation.

However, Millennial Scots are the second most likely in the UK to still rely on parental financial support, with more than half saying they still take handouts from family - behind only those young people living in London - according to the Money and Me report by the Social Market Foundation (SMF), commissioned by Tesco Bank.

Of those receiving support, the most common forms of assistance are help for unexpected emergencies, paying for accommodation, utility bills and paying for necessities such as groceries and clothes.

Across the UK, however, a quarter of Millennials have built up savings and 23 per cent own a home. Meanwhile, half of Millennials identify starting their own business as something they have already done, are doing or would like to do in the future.

David McCreadie, managing director at Tesco Bank, said: “This research reveals that Millennials - while diverse in terms of income, financial support from parents, and level of savings - retain many of the hopes and aspirations of their parents.

“Moreover, despite the many financial challenges that Millennials face, they remain optimistic about their financial future.”

Recent Labour Market figures from the Office for National Statistics show that employment levels for 25-34 year olds are now at an all-time high at over 82 per cent.

Nigel Keohane, research director at the SMF, said: “We often hear that the prospects of Millennials are bleak. This research tells a different story – with many comparing their futures favourably to the prospects of their parents at a similar age.”