Millennials are showing how prudent they are when it comes to their cash, with nearly half of them saving up to buy their first home.
Indeed, so many of 18 to 35-year-olds are keen on owning a property they can make their own by redecorating, fitting conservatories in Cheshire or replacing the kitchen, they put aside an average of 10.9 per cent of their monthly income post tax.
This is higher than those in Generation X (36 to 54-year-olds), who save 8.8 per cent per month, according to lender Zopa.
Giles Andrews, executive chairman and co-founder of Zopa, said: “Millennials have been characterised in some quarters as spendthrifts, but this research shows that most young people have a very responsible and positive attitude towards their finances.”
He stated millennials need to think of innovative ways to invest their money so they can save as much as possible out of their income.
As much as 45 per cent of those in this age group said the government’s new Lifetime Individual Savings Account (ISA) would encourage them to put money aside to get on the property ladder.
The Lifetime ISA, which will launch in April 2017, will allow accountholders to receive a government bonus of 25 per cent on the amount they save – up to £4,000 – every year. This can be used to put down a deposit on a first home up to the value of £450,000.
Despite this ISA boosting the savings potential for young people, 61 per cent said they would save more if interest rates were higher.