Cautious Gen Z spends less in pubs and bars – and more on insurance
Cautious Gen Zs limit their spending in pubs and clubs, and spend their money instead – on insurance. A poll of 2,000 adults has revealed the country’s spending priorities for the next 12 months.
More than one in three (35%) young people aged 18-24 plan to spend more on insurance, compared to just 11% of those aged 45-54. This comes as Gen Zers have been found to already have more insurance coverage for their belongings than older age groups.
The younger generation is four times more likely to insure their jewelry than those aged 55-64 (35% to 8% respectively), and twice as likely to protect their watch (26%) as the older generation older. . It also emerged that 37% of 18-24 year olds are willing to spend more on family experiences, compared to just one in ten among 55-64 year olds.
Across all age groups, dining out (31%), vacations and travel (27%) and clothing (22%) are the things people are looking to spend more money on. However, the UK’s vibrant nightlife sector could struggle as only one in ten plan to spend more money on pubs, clubs and alcohol.
Claudio Gienal, CEO of AXA UK & Ireland, who commissioned the research, said: “The cost of living crisis has understandably made many people nervous about what lies ahead. The Chancellor’s decision to lower the basic rate of income tax from 20% to 19%, an increase in the National Insurance (NI) payment threshold of £3,000 and a reduction in the tax on 5p fuel, shows the government knows budgets are squeezed.
“But despite this difficult climate, our research highlights the value we place on experiences with family and friends, and the importance of spending time together. In these uncertain times, it’s also worth noting that younger age groups are most likely to protect their assets through insurance, and people generally plan to purchase more insurance over the course of the year. coming year.
“It suggests they don’t see insurance as a luxury, but as a vital safety net that allows them to get on with their lives and do the things they love.” The study also found that when it comes to tightening the purse strings over the next 12 months, a quarter (24%) of adults plan to spend less on clothes – while others will cut back on their outings in restaurants (19%) and their purchases. electronics and gadgets (18 percent).
Others will also reduce spending on jewelry (17%) and home improvement (16%). Almost one in four (24%) of Gen Zers plan to spend less on cars next year, while more than a quarter of 45-54 year olds expect to cut back on their dining habits.
But while 60% of men think they are cautious shoppers, compared to 53% of women, men spend more on impulse purchases – £21 a week, compared to £16.60 a week. And Gen Zers spend more than any other age group on impulse purchases, splurging £28.80 a week, compared to just £11.90 for people aged 55-64.
The younger generation also expects to spend three times as much money on coffee to go as the over-55s. Londoners spent £30.30 on impulse purchases, with Northern Ireland (£23.80) and the North East (£20.80) making up the top three regions.
The East Midlands (£13.20), South West (£14.80) and South East (£15.40) were the most frugal regions, according to the survey conducted via OnePoll. Claudio Gienal added: “It is fascinating to see how the nation plans to spend its money in the coming months.
“An uncertain economic environment is creating a generational divide, meaning different age groups are prioritizing different activities when it comes to their spending. The lifting of coronavirus restrictions may explain why more than a quarter of Britons plan to spend more money on holidays and travel, despite rising inflation and economic uncertainty.
The soaring cost of living is putting household budgets under pressure, with some having to choose between heating and food.
Here are some resources available if you need help.
Advice to citizens
Citizens Advice is an independent charity providing free, confidential assistance with legal, consumer, housing, debt and other issues. Its website details the help available and where your nearest office is, for face-to-face advice.
Helpline : 0800 144 8848 (open 9 a.m. to 5 p.m., Monday to Friday)
The Trussell Trust
The Trussell Trust supports a national network of over 1,200 food banks, providing free emergency food to those in need. You can use its website to locate support wherever you live.
Hotline: 0808 208 2138 (open 9 a.m. to 5 p.m., Monday to Friday)
Turn2us is a national charity that provides practical support for people in financial difficulty. Its website includes a benefits calculator and details about programs and subsidies in your area, including for energy and water bills.
Hotline: 0808 802 2000 (open 9 a.m. to 5 p.m., Monday to Friday)
GEN Z SPENDING PRIORITIES FOR THE NEXT 12 MONTHS:
- Coffee to go – 37%
- Insurance – 35%
- Clothing – 33%
- Eating out – 33%
- Cars and vehicles – 31%
- Electronics and gadgets – 30%
- Jewelry – 24%
- Socializing in nightlife like nightclubs, bars and pubs – 19%
- Home improvement – 18%
- Furniture – 16%