Lauryn Willis from the Building Societies Association shares her top savings tips to help young people strengthen their financial security.
Are you a young person that is feeling frustrated and helpless about your savings? Does the thought of home ownership seem more of a dream rather a reality?
These feelings are too familiar with so many young people. However, it is important to remember that having savings, no matter how small, can make a world of difference, whether that its long-term savings, short term savings or just a rainy-day fund.
A report from UK Savings Week found that having savings improved mental wellbeing. The same report also found that there is a bigger positive impact on younger and lower income savers.
So with all those potential benefits, I thought I would share my savings tips:
Pre-loved clothes
So many people are regularly upgrading and discarding clothes that are perfectly fine. For me this presents the opportunity to buy great quality pre-loved clothes, with many being hardly worn. For example, if I need an occasion outfit that I’ll probably wear once I’ll consider shopping on second hand clothing stores online, such as Vinted and Depop. These apps are my go-to’s as they have clothes and shoes from the clothing stores that I love the most and trending fashion, which can make a world of difference to helping me to maintain my savings goals.
Automating savings
By automating my savings means I can save without thinking about it. A standing order that goes straight into my savings account when I get paid means I prioritise saving and I’m less tempted to spend what I want to put away. Remember it’s important to only save what you can afford; having a realistic target will help to avoid dipping into your savings.
Reducing lifestyle inflation
Social media has become a major influence in many people’s lives now, especially younger people. The influence of social media can sometimes bring lifestyle pressures on to us as we constantly try to keep up with fashion trends and testing out the latest ‘must-go-to’ restaurant, which can be extremely expensive and unstainable in the long run. When I feel these pressures, I take a step back for a moment and think about the unrealistic standards that social media portray before I dip into my bank account.
Travel Cheaper
Travel is often one of our biggest expenses. I take advantage of a rail card as it gives me a third off travel during off-peak times. There are railcards for those aged 16-25 as well as 26-30. Also, if you live or travel in London like me, try linking an oyster card to your railcard for more discounted travel.
Understand your spending habits
You would be surprised how much money we can spend without thinking about it, so understanding your spending habits can really help you have a better savings habit. Here’s a few things I’ve done to help me understand how I spend my money:
- Set up banking alerts
- Regularly check bank statements
- Review all subscriptions, cancelling the ones I don’t use or no longer feel offer value for money
I hope my savings tips help you to get into a better savings habit. Remember, it doesn’t matter how little you have to save, it’s consistency that is key with savings.
