FINANCIAL RESPONSIBILITIES INCREASE SIGNIFICANTLY AFTER 25

Paying essentials such as utilities and council tax becomes a reality as young adults transition from student life to the workforce. The reality of financial responsibilities often accompanies the excitement of newfound independence during one’s mid-twenties.

According to research, young workers may find their first salaries insufficient to cover necessities like utilities and council tax. The study reveals that the number of people making regular payments significantly increases among those aged 25 to 34 compared to those aged 18 to 24[1].

The data highlights that only 34% of 18-to- 24-year-olds currently pay utility bills, but this figure doubles to 68% among 25-to-34-year-olds. Similarly, internet usage payments rise from 45% for 18-to-24-year-olds to 70% for 25-to-34-year-olds.

TIPS FOR MANAGING REGULAR PAYMENTS

By following these tips and taking control of their financial responsibilities, young adults can ease the transition from student life to the workforce and set themselves up for a more secure financial future.

CREATE OR REVIEW YOUR BUDGET

A household budget can help you afford essential costs and identify potential savings. It can give you peace of mind about whether you can afford your essential expenses and have money left over for any non-essentials. If you already have a budget, it’s worth checking to see if it’s still working for you, especially as many costs have risen over the last few months.

Looking more closely at your current and past spending habits, you might find ways to cut costs in the future – freeing up some money to put elsewhere. Budgeting apps can analyse your spending and categorise expenses, making finding areas where you can cut costs easier.

CHECK FOR SAVINGS

Find opportunities to cut costs by switching providers or finding better phone contracts or utility bill deals. It’s always worth seeing if you can cut costs by…

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Source data:

[1] Boxclever conducted research among 6,000 UK adults. Fieldwork was conducted 6 Sept – 16 October 2022. Data was weighted postfieldwork to ensure the data remained nationally representative on key demographics.

This article does not constitute tax or legal advice and should not be relied upon as such. Tax treatment depends on the individual circumstances of each client and may be subject to chance in the future. For guidance, seek professional advice.