Everyone spends their money differently, and that’s because each individual prioritises what’s important. Some people would rather buy a new car than have a new kitchen fitted, and others are happy to run around in an old banger if it means they can go on luxury holidays. The choice is down to you, but that’s what it is: a choice.
So how do you choose to spend money? Once all of the bills, rent, car insurance and other monthly expenses have left the account, what do you do with the money that’s left over?
Perhaps you love objects and you’re always buying new things for your home, or clothes for yourself. Maybe you’re a book lover who’s always buying the biggest and latest bestsellers.
Some people prefer to spend their money on events. Festivals are getting bigger and better every year, and now people travel abroad to go to their favourite one. Food and nights out also seem to be getting more expensive, but people of all ages love going out for a meal and drinks with their friends. Nowadays, people have to take out Short Term Loans at Swift Money just to go on a night out!
This might sound far-fetched, but more people do it than you might think. 35 to 44-year-olds are the most likely generation to go into an overdraft if it means they can go and have drinks with a few friends, whereas 82% of 18 to 24-year-olds would decline. This is a surprising statistic that breaks down the stereotypes that we have about how generations spend their money.
The least likely age group to be in debt is the over 54s, but the second is 18-24s. Although millennials are more likely to have student debt, most Generation Xers (35-44s) will have a mortgage and therefore substantially more debt.
It’s nice to hear that the top reason for saving amongst all the age groups is to safeguard their future, e.g. paying into a pension, saving for unexpected bills or emergencies. Whilst it’s nice to spend the money you work hard to earn, it’s good to save some for unexpected surprises such as a car breakdown or a startling vet bill. 18% of millennials are saving for a property mortgage, and 89% of 54+ still save regularly which is surprising considering many of them will be living on a pension rather than a full wage.
How does your family like to spend their money?