Over half (52%) of 18-27 year olds feel they’re more financially savvy than their generation is perceived to be – with 65% planning their finances and making provisions to save for the future, according to new research from leading payments provider Klarna.
But Klarna’s research — of 2,000 UK consumers aged 18-37 conducted independently via Censuswide — also shows there’s a lack of clear, accessible information about money management available to this generation. Faced with navigating the ‘information overload’ of financial products in the market, a significant proportion (69%) of this demographic think the terms and conditions of products are unclear, and two-thirds don’t know which sources to believe or trust.
And although young people are trying to spend and save responsibly, almost half (42%) of 18-27 year olds say they find it difficult to keep track of their outgoings and financial commitments. Budgeting and spending, saving for and buying a house and paying bills are revealed to be the top three areas young people wish they had more help with - and a quarter say they’d appreciate guidance on debt avoidance.
Sparking an honest conversation about money management
As part of its mission to simplify payments and help people to be financially healthy, Klarna is launching its new initiative — Mindful Money, a digital content hub housing tried and tested tips and ideas from hand-picked third party contributors on managing money and spending responsibly.
Content on Mindful Money will be published under three ‘pillars’ of money management — Saving, Spending and Living. The opinions stated are not Klarna’s own, but belong to popular personal finance commentators and journalists. Money-making expert Money Magpie and leading journalist Daisy Buchanan are among the first wave of contributors.
Commenting on the initiative, Luke Griffiths, UK General Manager, Klarna, said: “It goes without saying that the financial security of our customers - no matter their age or circumstance - is very important to us. We all have a responsibility, especially to young people, to help them spend and save safely. We’re committed to being open and transparent about how our products and services work, and are always looking to find new ways to give our customers more choice and control in managing their finances - Mindful Money is born out of that mission.
Our research shows that 54% of Gen Z and millennials would like more sources of accessible, agenda-free information. At Klarna, we strongly believe talking about money should no longer be the last taboo - and in launching Mindful Money we aim to create a platform for an inspiring, informative conversation about money management. No preaching or jargon, just an open community for people to access helpful tips and ideas from our great range of contributors.”
Mindful Money contributor Laura Dempster, author of successful money saving blog Thrifty Londoner, said: “The importance of self-care is a hot topic at the moment, and caring for your finances should certainly fall under that category in order to maintain emotional well-being. Managing money doesn't get taught at school, which is why there’s a need for accessible, jargon-free information to be available to everyone.”