News Some cost-of-living optimism at last? Half of young adults think their financial situation will improve during 2024 Research released today has revealed that half (50%) of younger people aged 18-34 and a similar number (46%) of those with young families believe their personal finances will improve over the course of 2024. Overall, financial wellbeing was rated as the third most important component of wellbeing for younger people. Eighty two percent of 18-34s and 85% of younger families rated it as a big influence on their personal wellbeing. Only emotional wellbeing (86% 1834s/90% young families) and physical wellbeing (84% 18-34s/86% young families) scored higher. Despite many younger people’s expectation that their financial situation will get better this year, the ongoing cost-of-living crisis is still seen as the greatest drain on their wellbeing. It was identified as a primary concern by 55% of 18–34-year-olds across the country. The in depth survey of 2,000 UK adults was conducted by STRAT7 Researchbods. It examined the different factors affecting people’s health and wellbeing – including their ‘financial wellbeing’ – and asked what they’re doing to look after it. The research suggests the green shoots of financial optimism could be having a positive effect on the UK’s mental health: 54% of those aged 18-34 think their emotional wellbeing will improve during 2024. Sarah Askew, Innovation Director at STRAT7 Researchbods, says: “The results of our latest wellbeing survey reveal younger people are surprisingly upbeat about their personal finances given the UK is now officially in recession. However, it is also worth noting that looking at the population as a whole, almost a third still think their financial situation will get worse.” While the study suggests people are relatively positive about the economy in relation to their mental health, the same can not be said of politics. One in seven adults (15%) say the current political climate is taking a toll on their personal wellbeing. Of that number, many are taking steps to minimise the negativity of the political climate, nearly half (48%) are avoiding reading or watching the news, a third (35%) have stopped having political discussions with friends and family, and a quarter (27%) are limiting their social media usage. Sarah Askew concludes: “The Spring Budget may have offered some welcome respite to younger families. This may further boost positivity around finance, but trust in public institutions is at an all-time low and questions remain around how sustainable this support is for the next government. “This uncertainty puts additional pressure on Gen Z and Millennials, who are most likely to face the brunt of a downturn. This audience is least able to afford financial advice though, and are crying out for any support and advice financial brands can offer. As such, there’s a real opportunity for financial service businesses to step in and build equity for the longer-term.”
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