How financial priorities have changed in 2024
The traditional path of settling down young, starting a family, and climbing the corporate ladder is no longer the only route for young adults. With a growing emphasis on experiences over possessions, some Brits are choosing to prioritise travel and career exploration, with some embracing the "DINK" (double income, no kids) lifestyle and delaying parenthood. This shift in priorities, coupled with the rising cost of living felt across the UK, has undoubtedly reshaped our financial goals.
But what exactly are Brits focusing on with their hard-earned money in 2024? To find out, we surveyed nearly 5,000 people across the UK, asking them what their biggest financial priorities are for the next five years and whether the current economic climate has forced them to rethink their plans.
Brits' biggest financial priorities in 2024
1. Building up a rainy day fund
When asking Brits what their financial goals for the next five years are, building up a ‘rainy day fund’ comes out on top, with 27.7% prioritising having a safety net in place. This goal is particularly significant among the older demographic, specifically the Silent Generation (those aged 78 and above), where 30% have made it a top concern. This might be due to wanting to have a buffer in case of a sudden change in income, an unexpected cost, or a desire for additional security in retirement.
In contrast, only 15% of Generation Z (aged 16 to 26) consider this a priority, possibly reflecting their focus on more immediate financial goals such as saving for travel or paying off student loans.
2. Saving up to go travelling
The second most important financial goal for Brits in 2024 is saving up to go travelling, with 17.9% of people focusing on this objective.
Similar to the emergency fund, travel is most important for the Silent Generation, with 21% saving for a getaway. Gen Z follows closely behind at 19%, perhaps prioritising experiences over a traditional emergency fund.
3. Paying off debt completely
Rounding out the top three financial priorities is debt repayment, with 17.2% of Brits aiming to be debt-free. This goal is most common among Baby Boomers (aged 59 to 77), with over one in five (22%) prioritising repaying loan debt.
Both Gen Z and those aged 78 and over have a lower focus on debt repayment, with only 14% prioritising it in each group. This could be due to Gen Z's lower debt levels upon entering adulthood, while older adults might have already paid off most debts.
Rank | Financial choices that are a priority over the next five years | Percentage |
---|---|---|
1 | Building up a rainy day fund | 27.7% |
2 | Saving up to go travelling | 17.9% |
3 | Paying off my debt completely | 17.2% |
4 | Saving to retire (early) | 15.4% |
5 | Reducing debt | 15.1% |
5 | Buying a car | 15.1% |
6 | Buying a property (house, flat etc.) | 14.2% |
7 | Investing | 13.7% |
8 | Starting my own business | 7.6% |
9 | Moving out | 6.6% |
10 | Starting a family | 6.2% |
11 | Saving for a wedding | 5.1% |
12 | Buying a holiday home | 4.9% |
13 | Buying a second property to rent out | 3.7% |
14 | Buying a luxury item (such as a luxury handbag, designer watch, etc.) | 3.1% |
15 | Saving to buy an engagement ring | 2.7% |
*Note: Table showing the top 15 results, ranked by highest percentage
Generational differences in financial priorities
Financial goals and priorities can vary greatly depending on your age and life stage. Here's a breakdown of what matters most to different generations in Britain:
- Gen Z (aged 16 to 26): The younger generation prioritises homeownership. A quarter (25%) of Gen Z list buying property as their top financial goal, perhaps saving up for a deposit and a mortgage, followed by achieving independence through moving out (19%).
- Millennials (aged 27 to 42): Millennials are prioritising financial security, with just over one in five (22%) choosing to buy a property first, followed by building an emergency fund (21%), investing (21%), or paying off debt (19%) before spending on travel, new cars, or luxury items.
- Gen X (aged 43 to 58): For Gen X, financial stability is key. Their top priorities centre around building a safety net with a rainy day fund (27%) and reducing existing debt (22%).
- Baby Boomers (59 to 77): For Baby Boomers, building a rainy day fund (29%) is once again the top priority, followed closely by saving to retire early (25%). Reducing debt (23%) and becoming completely debt-free (22%) are also significant goals for this generation, likely reflecting their desire for financial stability in their later years.
- The Silent Generation (aged 78+): While building a rainy day fund remains the top goal for 30% of people over 78, a significant 22% say they don't have any major financial priorities for the next five years. This could be due to having already achieved their financial objectives or a shift in focus towards enjoying their golden years.
How rising costs are impacting financial priorities
Although for some people, building a rainy day fund or saving to go travelling is a priority over the next five years, a number of Brits have had to shift their priorities to stop focusing on this, due to rising living costs. While some long-term goals remain important, many may have to put dreams on hold in order to make ends meet.
Over one in 10 people (13%) have had to cut back on buying luxury items such as designer handbags. This focus on necessities extends even to emergency preparedness, with a concerning 11% unable to prioritise building a rainy day fund – despite this being the top financial goal for most Brits.
Travel dreams are also being deferred due to rising costs. One in 10 Brits (10%) have stopped saving for travelling, with this number rising to 15% among millennials and 16% among Gen Z. This shift reflects the broader impact of cost of living pressures on financial planning.
Rank | Financial choices that people have stopped making due to the cost of living rise | Percentage |
---|---|---|
1 | Buying a luxury item (such as a luxury handbag, designer watch, etc) | 13% |
2 | Building up a rainy day fund | 11% |
3 | Saving up to go travelling | 10% |
4 | Investing | 9% |
5 | Buying a car | 8% |
6 | Saving to retire (early) | 8% |
7 | Moving out | 7% |
8 | Saving for a wedding | 6% |
9 | Buying a property (house, flat etc) | 6% |
10 | Buying a holiday home | 6% |
*Note: Table showing the top 10 results, ranked by highest percentage
How to determine your top financial priorities
Feeling overwhelmed by all the financial goals you feel like you "should" be working towards? The good news is, you don't have to tackle everything at once. The first step to financial security is figuring out what matters most to you, and that's where identifying your top financial priorities comes in.
Here are some tips to get you started:
1. Reflect on Your Values
Is financial security the most important, or do you prioritise travel experiences? Is homeownership a dream, or are you content with renting? Understanding your core values will guide your financial decision-making.
2. Craft a budget
Creating a budget can give you a clear picture of your income and expenses. Knowing where your money goes empowers you to make informed choices about spending and saving.
There are lots of online tools that can help you get started if you’re not sure where to begin.
3. Prioritise saving
Building a rainy day fund is an important financial safety net. Aim to save a specific amount each month, even if it's a small amount to start. This buffer can protect you from unexpected financial emergencies.
4. Tackle debt strategically
Make a comprehensive list of any debts, including interest rates and minimum payments. This will give you a clear picture of what you owe.
It’s a good idea to prioritise high-interest debts first, like credit cards. You can also consider debt consolidation to simplify repayments and potentially secure a lower interest rate.
If you’re struggling to repay any loans, get in touch with the loan provider. They might be able to give you more time to make the payment.
5. Review and re-evaluate
Financial priorities can change over time. Schedule regular check-ins with your budget and financial goals. Are you on track? Do your priorities need adjusting based on life changes? Regular reviews make sure you're staying focused on achieving your long-term financial aspirations.
The content written in this article is for information purposes only and should not be taken as financial advice. If you require support on the products discussed here, please speak to your bank/lender or seek the advice of an independent professional financial advisor. We also have more information on our Customer Support Hub.
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