Almost half of young Brits have failed to put any money into savings over the past year, as mounting financial pressures continue to squeeze the generation.
Research from Young Enterprise and HSBC UK found that nearly half of Gen Z, those aged between 14 and 29, had not allocated any money to savings in the past twelve months.
Rising living costs, social pressure, and a widespread lack of financial education are all contributing to young people feeling unable to set money aside.
Sarah Porretta, chief executive of Young Enterprise, pushed back on common assumptions about young people’s attitudes toward money, arguing the reality is far more complex.
Porretta said: “The idea that young people are reckless with money simply isn’t true.”
She added: “This shows a generation under real pressure, they have grown up through first the Covid pandemic and then cost-of-living challenges and are worried about spending.”
The anxiety around money is not limited to saving, with two-thirds of respondents also expressing worry over spending money on a day-to-day basis.
Over 40 per cent of Gen Z said their spending is driven by a desire to feel better emotionally, while 55 per cent confirmed feeling guilty when they do spend.
Many young people admitted that despite using purchases as an emotional outlet, they regularly regretted those same decisions afterwards.
The problem is particularly acute among teenagers, with 64 per cent of 16 to 19 year olds reporting anxiety around spending and 50 per cent experiencing guilt when doing so.
Despite the scale of financial stress within this age group, more than one in five said they would feel embarrassed asking for help with budgeting.
The findings also point to a broader and long-standing concern about the quality of financial education delivered in UK schools.
Nearly two-thirds of people across the UK feel the financial education they received during their school years failed to adequately prepare them for managing money in adult life.
Industry figures have grown increasingly vocal in raising the alarm about insufficient monetary teaching at the school level, calling for systemic reform.
Natalie Gregoire-Skeete, Head of Societal Purpose and Sustainability at HSBC UK, said: “When young people feel unable to save and anxious about spending, it’s a clear sign we need to do more collectively, across schools, families, charities and businesses, to help build the skills and confidence they need for the future.”