Much is said about Millennials and Gen Z living beyond their means, with regular reports popping up in the media with headlines like ‘Under 30s Spend ALL of Their Money on Avocados’ and ‘Millennials Spend 95% More on Eating Out Compared to Any Other Generation in History’.
So, are they just terrible money managers, or is there a bigger, underlying factor as to why young people are always ‘skint’?
According to new research, overpriced, avocado-heavy brunches are the least of our worries.
A recent study has found that rent is “unaffordable” for a significant amount of working people in their 20s
Research from the BBC, using data from the Office for National Statistics (ONS), shows that, despite the advice of housing organisations and charities such as Shelter, many are forced to spend more than 30% of their income on rent.
For the average person in the 22-29 age bracket, earning an average salary (~£23,000 per year/~£445 per week), a one-bedroom flat was found to be unaffordable in over 65% of UK postcodes.
So, what about the other end of the scale? The research also discovered the most affordable postcode areas in the country. These were Argyll and Bute (PA28), Scottish Borders (TD9), Northumberland (NE62) and East Ayrshire (KA16).
In Argyll and Bute, those in the 22-29 age bracket would only have to spend 15% of their income on renting a typical property. However these areas are mostly rural with little industry, meaning fewer job opportunities and increased travel costs, this puts people in a tough situation, find affordable housing, or find a job, the ability to do both is a luxury afforded to very few.
Calculating your income and expenditure is an essential budgeting task for anyone in any situation if you are to live within your means, by doing so you can work out how affordable your housing is and if you need to review your current situation. Check out our free Debt Calculator to track how your salary stacks up against your monthly outgoings.
Are you struggling to pay your rent, or meet your everyday living expenses without borrowing credit?
For free, impartial advice, you can get in touch with The Debt Advisor on 0800 085 1825 to find out how we can help you manage your debt and get on the road to becoming financially stable.
The Debt Advisor Ltd is regulated by The Financial Conduct Authority No 659920 and can offer help and advice on all debt solutions. There is also free advice available through The Money Advice Service who you can call on 0800 138 7777.