As a third lockdown takes hold of the nation, new research has exposed just how unprepared Brits are for another year of financial uncertainty.
A telling report from the experts at digital financial coaching app, Claro, reveals that 10.5 million British adults (or 1 in 5 of the UK adult population) have no financial cushion whatsoever – meaning they do not have enough money saved to support their household for even a month if they were to lose their main source of income.
The report goes on to reveal this lack of safety net become more pronounced in the younger generations, as it found almost 1 in 3 (31%) of 18-24-year olds confess they wouldn’t have enough savings to last even a month if they were to lose their job.
The data shows that young people aged 18-24 are currently struggling disproportionately, with a huge 41% of this age group in Britain having already experienced their income falling short of their living costs in the last year.
Furthermore, 16% of 18-24-year-olds confessed they haven’t made any attempt to save money this year at all, making them even more financially vulnerable as the pandemic continues.
However, it is not just Gen-Z struggling to save. It is revealed that 39% of British households do no budgeting whatsoever – and do not keep track of income and expenses.
This is most concerning as the nation inches closer towards the end of the furlough period and economic uncertainty caused by covid-19 continues.
Despite this, British adults are aware of their financial situation, as 67% say they keep a close watch on their finances, which suggests they are just unsure on how to improve them.
What’s more there are many small changes that that British people, including Gen-Z, can make to safeguard their financial future.