Young people are spending less than the same age group did 18 years ago, proving we might not be splashing out on as much avocado as people think.
Under 30s are spending, on average, £380 per week on ‘non-housing’ items, which is 7% less than they were in 2001, the ‘Intergenerational Audit’ report by the Resolution Foundation thinktank found.
Young people are also allocating a smaller of share of their spending to ‘leisure activities’ – such as restaurants, hotels, and culture – down £100 a week.
“Overall, these changes in what people spend their money on support the conclusion that the 21st century has been characterised by a squeeze on spending – especially spending that is discretionary, or just plain ‘fun’ – for millennial and Generation X cohorts,” the report concluded.
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Researchers found the weekly spending of those aged 30-49 has risen by £3 to £418 in the same period – and those aged 50-64 saw their weekly spending rise by £44 to £460.
Interestingly, the spending of over-65s has risen by 37%. Researchers found between 2001 and 2002, the average Brit aged 65 or over spent £283 on “fun stuff”, and this figure rose to £388 in 2017-18.
When looking at salaries, the thinktank found that people under 30 have seen the biggest recovery in salaries since the financial crash in 2008 – but those in their early 30s are paid 3% less than someone born 10 years earlier.
The Resolution Foundation didn’t want the research to pit the two generations against each other, but said it was a way to “understand the changing economy”.
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“From frustrations about buying a first home to fears about the cost of care, Britain faces many intergenerational challenges,” commented David Willetts, president of the thinktank’s Intergenerational Centre and a Tory life peer.
“The big living standards gains that each generation used to enjoy over their predecessors have stalled. Welcome steps are being made, from stronger pay growth for young millennials to the success of auto-enrolment into pension saving.”