Study shows how young people use reselling apps, banking tools and Lifetime ISAs to boost savings while still enjoying treats
A survey of 1,000 18–29-year-olds revealed that 95% are finding clever ways to cut costs – without sacrificing life’s little pleasures. The study uncovered that 28% of those using reselling apps to flog unwanted items have pocketed an average of £184 over the past year, while 46% have activated the ’round up’ feature on their banking apps – rounding each transaction up to the nearest pound and transferring the difference into savings.
Furthermore, a third (33%) are taking advantage of Lifetime ISA accounts to save towards their first property or retirement – benefiting from a 25% top-up from the government.
Rajan Lakhani at Plum, which commissioned the research, said: “Gen Z has completely redefined what ‘treating yourself’ looks like. Rather than reckless spending, we’re seeing a generation that plans ahead, hunts for value and uses smart saving tactics so they can still enjoy life’s little luxuries.
“Whether that’s a great coffee, a meal out with friends or the occasional fashion splurge, without compromising their financial security.”
Ever wondered what type of spender you are? Take our quiz to discover whether you’re a ‘Carefree Treat King or Queen’ or a ‘Savvy Legend’.
The research revealed that 23% of Gen Z indulge in these ‘little luxuries’ on a weekly basis, with 29% saying it helps ‘keep them going’.
Over the past year, 58% believe their spending habits have shifted, with most attributing the change to the rising cost of living. Yet 35% attribute this to superior planning, while 32% have enhanced their understanding of finances.
When looking for financial guidance, 44% typically consult friends and relatives, 25% rely on money apps, and 31% favour social media platforms.
Around 24% credit YouTube and Instagram as the primary reason their generation demonstrates greater financial literacy.
Meanwhile, 22% believe it stems from learning from earlier generations’ monetary errors, with 23% citing growing up amid economic instability.
Plum’s Rajan Lakhani commented: “Gen Z are often misunderstood when it comes to money, but the reality is they’re one of the most financially aware generations. The ‘avocado on toast’ jibe is truly unfair and incorrect.
“Growing up against a backdrop of economic uncertainty has made many of them cautious, informed and far more proactive about managing their finances from an early age.
“Traditional ideas of wealth seem increasingly inaccessible so they’re more focused on control and flexibility – where budgeting, saving and tracking spending are second nature.”
