Grandparents do not advice their grandchildren as much anymore about the necessity of frugality, because they think the younger generation does not care for it. According to a research carried out by the government’s savings arm, National Savings & Investments, only one in ten Britons still gives guidance to the grandchildren.
33% of the over-65s interviewed did not think the money tips were desired. However, NS&I say that youngsters desperately want the advice. 33% of those questioned saw their grandparents as role models with regard to the handling of money.
People Don’t Start Saving until They Reach 34
The research also pointed out that 11% of the youngsters between 16 and 34, which is about 1.7m people, do not have savings at all. A study by Skipton Building Society discovered that youngster often only start saving for a big event, like a wedding, or when they realise they spend more than they have after talks with their guardians. The most likely age for people to start saving is 34.
The increased life expectancy also causes problems. One in three babies born has a big chance to reach 100. The government worries that the costs of state old age benefits will increase deeply without savings.
Government Accused of Hypocrisy
The government has been accused of hypocrisy, since on the one hand, they have raised the university fees, leaving students with high debts, and on the other hand they want employers to enrol employees are be paid more than £5,000 in a pension scheme.
According to John Prout of NS&I, grandparents can help youngsters to start saving from an early age.
Simon Rose from Save Our Savers, says the UK government should reward saving. Saving rates have substantially decreased. Moneyfacts.co.uk says that the average account in the UK 0.98 at the moment, whereas prices increased with one twentieth last year on the Retail Prices Index, which means that people money becomes less worth.