Gen Z savers were the biggest spenders during the Covid-19 pandemic, with one in five 18-24 year olds claiming to have spent more during lockdown than they did before.
In a survey involving more than 8,000 customers, Paragon Bank found that 21% of Gen-Z savers were spending more than before during the pandemic – this is 160% higher than the overall average of 8%.
Customers aged 18-24 years old were also twice more likely to have withdrawn money from savings to pay for essentials during lockdown, with 8% confirming they had made a withdrawal from a savings pot against an average of 4%.
However, nearly half (48%) of 18-24 year olds surveyed decreased spending during the pandemic, although this was 11 points below the average of 59%. Another 31% found their spending remained around the same as before lockdown.
Older savers were thriftier during the lockdown period, with 55-69 year olds proving to be the most cautious – 62% made an effort to spend less than before the pandemic while only 6% claimed to spend more.
This increase in spending amongst younger savers was likely facilitated by decreased outgoings during the lockdown period, with half of 18-24 year olds and 56% of 25-34 year olds agreeing that they were able to save more money as a result of the lockdown period.
In contrast, fewer than one in three amongst the over 55s felt like they were in a better position to save as a result of Covid-19, with more finding their financial position unchanged or worse off than younger age groups.