While simply existing at any age costs an arm and a leg, researchers have totalled the most expensive period of your life – and it is, according to the latest figures, age 31. But, rather than 31-year-olds racking up costs on avocados and Ubers, as is so often suggested, they’re forking out on big expensive milestones, such as getting hitched, buying property and giving birth. And a whopping £43,000 is needed to cover the costs – nearly double the average salary.
The survey of more than 3,000 people from credit-checking firm ClearScore found that the top money-sucking purchases were saving for a wedding at 27 per cent, buying a house at 25 per cent, having a baby at 20 per cent and paying for a honeymoon at 14 per cent.
Just over half footed the big 31st bill with money from their savings and a third had help from their parents. Comparably, only 14 per cent of over-55s said they had required help from their parents for the same purchases. A previous report last year from over-fifties insurance company SunLife found over-55s have average savings that are nearly double those of your average person in the UK. The vast difference in savings probably explains why the older generation had less of a need to rely on the bank of mum and dad.
Millennials have notoriously had it rough – they are the first generation to be doing economically worse than the generation before them, Generation X
The use of credit has, perhaps unsurprisingly, also increased between the generations, with one in five under-34-year-olds using credit to fund big purchases, compared with just eight per cent of over-55s. All in all, millennials and baby boomers were able to agree on one thing: that millennials have a tougher time financially than older generations, with 51 per cent of 25- to 34-year-olds and 57 per cent of over-55s agreeing this was the case.
Millennials have notoriously had it rough – they are the first generation to be doing economically worse than the generation before them, Generation X. With lower income growth and less chance of ever owning their own house, it’s unsurprising that the use of credit has rocketed and many have simply succumbed to the idea of renting for the rest of their lives. For an age group dubbed both “generation rent” and “generation debt”, £43,000 is, on average, simply impossible to put aside and, with Brexit looming, the uncertainty makes it even harder to plan for the future.
Across the board, the top monetary concerns were saving for retirement (25 per cent), saving enough in general (20 per cent) and having enough money to support children (14 per cent). So, if you’re approaching the big 3-1, get ready for the most expensive year of your life. Unless, of course, you live in London, where every year is. Happy saving!