Saving used to be simple: put a little aside each month, avoid debt, repair what you own, and build up a financial cushion over time.
But today, everything feels upside down. Spending is easier than ever, credit is everywhere, and whole generations are growing up in an economy designed around convenience, speed, and instant gratification.
So what’s actually happening? Why are fewer people saving and is it really their fault?
The Old “Make Do and Mend” Mentality vs. Modern Life
Ask someone aged 60+ about their childhood and you’ll hear familiar themes:
Wearing hand-me-downs
Repairing clothes instead of replacing them
Buying only when something truly needed replacing
Reusing packaging, jars, and bags
Saving up before buying anything significant
This wasn’t “being frugal” it was simply normal life.
Today, the environment is completely different:
Instant shopping: Next-day delivery, fast fashion, one-click checkout.
Endless advertising: Instagram, YouTube, TikTok, email constant triggers to buy.
Buy Now, Pay Later options everywhere, normalising small debts.
Social pressure: Lifestyle comparison, trends, and “must-haves.”
Saving used to be a default behaviour.
Spending is the default now.
Younger Generations vs Older Generations: What the Numbers Say
Interestingly, younger generations aren’t unwilling to save, they’re just operating in a tougher environment
Here’s what recent research shows:
1. Younger people are trying to save.
Surveys show Millennials and Gen Z are more likely than older generations to say they increased their savings in the past year.
2. But older generations simply have more saved.
People aged 66–75 are far more likely to have £1,000+ in savings than those aged 18–35.
They’ve had more years to earn, fewer living costs at the time, and less reliance on credit.
3. A large portion of younger adults have no savings at all.
Around a quarter of 18–34-year-olds report having zero savings.
So the issue isn’t motivation, it’s circumstances.
The Rise of Credit & Buy Now, Pay Later (BNPL)
BNPL has exploded in popularity, especially with younger adults.
Key points:
Around 50% of UK adults have used BNPL.
Nearly 1 in 5 users have used it for essentials like groceries or fuel.
Millennials and Gen Z are the heavy users.
More than half of BNPL users have paid late fees.
BNPL creates the illusion of affordability:
“You don’t need to save, just split the cost into 3 payments.”
This chips away at the habit of saving and adds financial pressure later.
State Pension Reliance: The Silent Problem
Older data shows that roughly 31% of pensioners rely entirely on the state pension and pension credit, with no additional savings or pension income.
Younger people see this and assume:
“Well, I’ll probably just rely on the state pension too.”
But with rising costs and an uncertain future, the state pension alone won’t provide a comfortable retirement for most people, making saving even more important.
Why Saving Is Harder for Younger Generations
Putting everything together, saving is more difficult today because:
1. Lower disposable income
Rent, food, energy, transport, childcare all rising faster than wages.
2. Debt starts early
Student loans, credit cards, BNPL reducing the ability to save.
3. inflation & cost of living
Two incomes don’t go as far as one income did decades ago.
4. Instant gratification culture
Apps encourage spending, not waiting.
5. Lack of financial education
Most people never learned budgeting, investing, credit management, or how pensions work.
How We Can Rebuild the Saving Habit
This isn’t about guilt. It’s about practical, realistic steps.
Start small
Save even 1–2% of your income. Build from there.
Automate
Set up automatic transfers the day after payday.
Use money-saving tools
Cashback apps, comparison sites, second-hand shopping, small changes add up.
Reduce reliance on credit
Avoid BNPL where possible. Delay purchases that aren’t essential.
Learn the basics of investing & pensions
Understanding compound growth changes everything.
Set clear goals
Emergency fund? House deposit? Travel?
Saving becomes easier when you know why you’re doing it.
Final Thought
Saving feels old-fashioned in a world designed for instant gratification, but that’s exactly why it matters.
Younger generations aren’t lazy or careless with money. They’re navigating a financial system that’s more complex, more expensive, and more tempting than ever before.
But the saving habit isn’t gone.
It just needs rebuilding, step by step, mindset by mindset.
Financial freedom starts with awareness and intentional choices, not perfection.
disclaimer
The information on this page is for general education and discussion only and does not constitute financial advice.
We are not affiliated with any banks, savings platforms, or financial institutions mentioned.
Everyone’s financial situation is different, and saving habits vary depending on income, priorities, and personal needs.
Always consider your own circumstances and seek independent financial advice if you’re unsure about saving, budgeting, or money management.
