Social media could inspire a new generation of savvy savers and fiscally responsible young adults, with 74% of Gen Z taking part in social media-based challenges to boost their overall savings, as revealed in the latest NatWest Savings index.

Compared to other age groups, Gen Z is the most likely of any generation to budget. Almost seven in ten (69%) 18-24 year olds say they create a budget for their finances, in contrast to those aged 65 and over, where less than half (42%) report they I set a budget.

Younger savers are actively engaging in social media-based savings challenges. Almost a fifth of 18-24 year olds say they participate in “no-spend months” (18%) and the “50/30/20” (wants/needs/savings) rule (17%), with more than one in five try impulse buying (21%) as they try to increase their overall savings. All this can create a generation of financially conscious youth.

The NatWest Index surveyed 10,000 people in the UK. It found that nationally, 22% of UK adults save less than £50 a month. On average, UK adults who save save 24% less per month than they think they should, putting away £203.21 each month despite being closer to £265.95 ..

As well as many not having a savings goal, the research showed that not having a savings buffer affects mental health, with 22% of respondents saying their savings balance negatively affects their well-being and more than a quarter (27% ) of adults who say they don’t discuss their finances with anyone. There are clear generational differences, with younger generations more likely to discuss their finances (86%), compared to Baby Boomers, of whom 37% say they would not discuss it with anyone.

The research also found that nearly two in five UK adults (39%) have no budget at all and 13% have no emergency fund, with 25% of those surveyed having less than £400 in their emergency fund. urgency, despite ongoing economic challenges.

More than half of respondents cited rising food costs (56%) and rising energy bills (51%) as the main factors limiting savings potential. More than three-quarters (76%) said they are willing to cut back on discretionary spending to boost savings, including 42% willing to cut back on dining out to increase how much they can save.

“Furthermore, it is encouraging to see the younger generation engaging with new ideas and solutions to boost their savings. The research is a wake-up call – almost two in five adults (39%) have no budget at all and just over half (53%) have no specific savings goal. said Lewis Broadie, savings expert at NatWest.

“The findings highlight the need for greater financial education and accessible tools to support people to manage their budgets effectively and get practical support to reach their savings goals.”

View the full NatWest Savings Index for more results on UK saving habits, as well as tips and advice on budgeting towards your savings goals. Savings Index | Statistics and Savings Report | NatWest