Young people struggling to save

Young people struggling to save

Young people are finding it increasingly difficult to save, which could lead to them taking on more credit card debt to buy big-ticket items.

According to Annie Shaw, editor of CashQuestions.com, the high unemployment rate, coupled with fairly low salaries in starting jobs, make it harder for young people to put cash aside.

"If they are starting out, they have got to pay rent, they have got to buy a car because they need it for transport to work, it is very difficult for them to put money aside. Young people should be aware of the power of compound interest and a long-term investment. If you are saving for a rainy day, just get into the habit and save a little bit if you can," Ms Shaw said.

She added that young people should not think it's a waste of time saving a little each week or month as it all adds up in the end and having a bit of cash tucked away for emergencies is a lot better than getting into debt.

Ms Shaw's comments come after data from the TUC shows that unemployment for 18 to 24 year-olds has increased in the vast majority of regions.

Debt Line

Posted by David Varley