Gen Z: study reveals those in age range 18 to 24 are more budget and money management-savvy than older Boomers

• A study by NatWest shows that 69% of 18 to 24-year-olds create a budget, compared to just 42% of boomers
• Nearly 74% of Gen Z have also engaged in social media-driven savings challenges
• About 18% of young adults participate in ‘no-spend months,’ and 17% use a budgeting method that divides money into wants, needs and savings
• The news highlights Gen Z’s proactive approach to managing finances

Gen Zers are more likely to be responsible and cautious with its money than ‘Boomers’, a study has found.

More than two-thirds of those belonging to Gen Z create a budget for their finances, while less than half of baby boomers do the same.

According to NatWest’s savings index, 69% of 18 to 24-year-olds individuals set a budget, compared to just 42% of those over 65.

Additionally, nearly three-quarters (74%) of 18 to 24-year-olds have participated in social media-driven challenges to enhance their savings.

The news challenges the common stereotype that younger people are more frivolous with their money, and suggests that in actuality, a significant majority are actively managing their finances.

About 18% of this age group also engage in "no-spend months," and 17% have experimented with a budgeting technique that allocates their available money into categories of wants, needs and savings.

More than a fifth (21%) have tried “no impulse” purchases, as they seek to boost their overall savings. These proactive approaches to saving suggest that younger people are not only conscious of their finances, but are also motivated to improve their financial habits.

The index, which involved a OnePoll survey of 10,000 people across the UK, found that nationally, 22% of adults save less than £50 a month. On average, savers are putting away around £203 per month but think they should be putting away about £266.

Gen Alpha, the cohort following Gen Z, is set to benefit from new financial tools aimed at fostering early money management skills.

Last week, digital bank Monzo announced plans to launch a new account specifically designed for children under 16, which will allow kids to set savings goals and manage their money through a feature called “pots.”

The account will come with a colourful Monzo card available in pink, yellow or blue, and include in-app guidance to help children learn about budgeting and saving.

Available to children aged six to 15, the account is fee-free, with no charges for signing up, adding funds or spending abroad.

The initiative aims to give children a foundational experience in saving and budgeting, including receiving pocket money and using a card for purchases.

It also offers parents or guardians oversight, allowing them to monitor spending, set limits and control cash withdrawals and online payments through a linked account.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “Budgeting and saving for a rainy day is a life skill which might not come naturally to some or indeed passed down, so getting into such a routine might seem a hassle.

“This is why digital apps and accounts that provide real-time balances and teach money management skills are a great asset to enhance any financial education.”

What do you think about Gen Z's financial habits and the new tools for younger generations? How do you manage your own finances or teach your children about money? Share your thoughts and experiences in the comments below.