Gen Z & Millennials: saving, spending, and what’s next
For years, young people have been unfairly stereotyped as reckless spenders. Think food delivery, pricey coffee and a “live for today” mindset. But the reality in 2025 tells a very different story.
Far from being financially careless, Gen Z and Millennials are showing real ownership over their money. In fact, they’re almost twice as likely as older peers to be putting away more money than they were a year ago, this is a positive sign for habit-building, even in tough times.
A closer look at their savings
Of course, it’s not all smooth sailing. A quarter of 18–35-year-olds have less than £500 saved, and nearly half say they rely on bonuses or gifts to grow their savings pot.
That means while intent is strong, many are still living close to the edge, a financial risk where unexpected costs can throw things off balance.
Where the money goes
Spending patterns tell their own story:
Subscriptions lead the way: Gen Z spends an average of £305 a month on subscription services (three times more than Gen X). Think streaming, meal kits, convenience apps.
Experiences matter most: 18-34 year olds spend on average £1,170 each summer on festivals, nights out, and trips - often dipping into savings to fund those moments.
Optimism vs. worry
When asked about their outlook, the UK Youth Poll 2025 found:
37% say finances are their biggest worry
23% stress about work pressures
20% fear job insecurity
But here’s the twist: 70% of those working full-time remain optimistic about their future.
This mix of anxiety and optimism shows that while money is a top concern, young people haven’t given up hope. They’re ready to take action if they have the right tools.
What this means for the future
The takeaway? Young people want to save, but they’re often pulled between short-term spending and long-term financial security. Employers, benefit platforms, and financial services have a real opportunity here: to make saving easier, more automatic, and more rewarding!
That’s where solutions like Sync Savings come in. By setting aside money before it even reaches a bank account, young savers can build stronger habits in the background freeing them to enjoy life today without losing sight of tomorrow.
Payroll savings help your employees, and your business - see the impact for yourself
The cost of low financial resilience is huge, with UK employers losing billions each year to stress, absenteeism, and reduced productivity.
That’s why supporting your people’s financial wellbeing isn’t just the right thing to do - it’s good for business too.
If you’re wondering how much payroll savings can benefit your organisation (not just your employees), take a look at our analysis on the tangible business impact: How much could Payroll Savings save your business?.
Ready to support your team’s financial wellbeing?
We’d love to show you how payroll savings can work for your people and your business
