Top things millennials and Gen Z save money for - like emergency fund or house deposit

A quarter want to try dabbling in shares

A survey has revealed the top things young adults are most likely to be saving their money for, with 40 percent of millennials building up an emergency fund for the future – while Gen Z have going travelling at the top of their list. Building up a house deposit is almost equally important to both age groups (24 percent of millennials, compared to 27 percent of Gen Z).

But the older millennials are more likely to put their savings towards a knees-up holiday, placing it second on their list of priorities – compared to Gen Z, who have it in fourth place, underneath investing in the stock markets.

Supporting their children, a more comfortable retirement, and paying off their debts are other common things both millennials and Gen Z are saving towards.

And a poll of 1,750 young adults, across both age groups, found nearly a quarter are wanting to dabble in shares, while one in five are looking at cryptocurrencies, and 18 percent at valuable metals.

The study revealed that young Brits are fed up with low interest rates from high-street banks, and are looking to switch to more adventurous investments to get a better return.

A daring 17 percent are even considering betting small amounts on odds-on sporting events.

But 33 percent are thinking of investing in Stocks and Shares ISAs, as young savers want to punish banks for failing to pass on higher interest rates.

It also emerged 65 percent believe they are better placed to make their money work harder for them, compared to older generations.

And 67 percent think new technologies make saving and investment easier to understand.

And a fifth are even looking at valuable metals

Just over a third (34 percent) feel frustrated at how interest rates on borrowing for things like loans and mortgages have risen more quickly than they have on savings.

And 33 percent are outright annoyed – but 23 percent feel powerless to do anything about it.

However, 52 percent are somewhat inspired by wealthy online entrepreneurs, often seen on social media.

And 65 percent believe the amount of financial information available online – in blogs, podcasts, and elsewhere – helps them better understand savings and investments.

Victor Trokoudes, from Plum, added: “No matter what you’re saving for, without good money practices you’ll have a hard time reaching your goals.

“Taking time to research not only the best savings options available to you, but the wisest ways of investing, can pay dividends in the future.

“At Plum, we try to make this easier through automation and AI, so people can set more money aside.

“Our research has shown young people seem pretty savvy with their money, and are looking for new ways to make their wealth grow over the long-term.”

1. An emergency fund/safety net for the future
2. A holiday
3. Home improvements
4. House deposit
5. Supporting their children
6. A more comfortable retirement
7. Paying off their mortgage early
8. Going travelling
9. Paying off debts
10. A car or other mode of transport

1. Going travelling
2. An emergency fund/safety net for the future
3. Investing in the stock markets
4. A holiday
5. House deposit
6. Paying off debts
7. Starting their own business
8. Supporting their children
9. A more comfortable retirement
10. A new phone

A quarter want to try dabbling in shares