Younger generation grounded on saving

The younger generation have had to be more “realistic” about money than their parents and grandparents, with more of them saving for a house or to pay off debts than wanting to blow their cash on a holiday, a study has claimed.

Aviva’s study into the “foundation generation” – people aged 25 to 35 who are laying the groundwork for their future – found that 36 per cent of those questioned are scrimping to buy a house, while 34 per cent are putting money aside to pay off debts. A fifth are also trying to pay off their mortgage as quickly as possible.

Meanwhile, only 8 per cent of young people, whose typical monthly take-home pay is £1,144, are saving for a holiday and 13 per cent to fund other interests.