A study has concluded that 72% of young people (those aged between 18-34) would rather spend their money on a holiday than use it to save towards their first house.
The survey, which was conducted on behalf of lastminute.com also said that 60% of young people would not cut back on their spending over holidays because it was just a ‘drop in the ocean’ when compared to putting down a deposit on a first property.
Dr. Tomas Chamorro-Premuzic, professor of business psychology at University College London commented on the study: “We’ve seen mind-sets in Britain become even more hedonistic, especially among young people. This reflects the extent of pressure many young people now face –both immediate job worries and long-term concerns over owning a home. The motivation to save for a property has also clearly been affected by the level of savings required. Psychologically, it is much easier to make the first step if the task in hand seems manageable.
Holidays are a great antidote to daily stress and routine but budgets should be balanced so long-term goals can be achieved as well as short-term fun. This is less obvious to young people who are more inclined to live in the present, because they feel they’ve got time on their side to worry about the future. However, worries can have a positive function, signalling the things we need to change or improve to help us create a better future and help us to realise the life we’ve envisaged for ourselves.”