Do one third of young people under the age of 25 really have more than €25,000 in savings? That’s what a major bank claims

Almost a third of 18-24 year olds have more than £25,000 in savings, a new poll has found.

Overall, 36 percent of adults have built up savings of at least £25,000, while 17 percent have £50,000 or more, says Starling Bank.

In the meantime, 1 percent of respondents have saved £100,000 or more.

However, 23 percent have less than £500 in total savingsThis results in a growing savings gap across the board.

This is Money asked for a breakdown of the occupations of under-25s with more than £25,000, but Starling Bank was unable to provide this information.

In general, those under 25 have smaller eggs, mainly due to their age and earning capacity, and this is reflected in their difficulties getting onto the housing ladder.

Starling Bank said the figures reflect that Gen Z is a “generation of haves and have nots when it comes to savings”.

It suggested that 40 percent of all Gen Z adults are saving for a home deposit, many of whom are likely to live with their parents, which could go some way to explaining why many are sitting on hefty savings pots.

Rachel Kerrone of Starling Bank said: ‘Gen Z has been forced into greater financial awareness by their circumstances.

“They came of age during the cost of living crisis and post-COVID recession, in addition to growing up during the financial crash.

‘This may have conveyed the message of the importance of saving and started a generation that strives to remain financially stable.

‘This could also have changed perspectives around lump sums (money inherited from wills for example) which are now more likely to be put into savings for future purposes rather than spent frivolously.’

Emergency funds are dwindling in favor of vacations

The survey found that despite a significant portion of the country sitting on comfortable savings, many are neglecting their emergency fund.

Almost a quarter of adults have less than €500 in an emergency fund and 50 percent have less than €250. For Generation Z this rises to 80 percent.

This is seen as separate from savings: money that is immediately accessible, rather than money that is locked up.

A third have no emergency fund at all, rising to 48 percent of 18-24 year olds and 38 percent of 25-34 year olds.

Nearly a quarter of all adults who have built a rainy day fund have dipped into it at some point in the past year for unexpected household bills or repairs.

One in five have had to use it for engine repairs, while 16 percent for dental or medical bills.

Of those under 25, 80 percent admit to using their savings for non-urgent expenses, much more than other age groups.

Nearly two-thirds of all adults have used their emergency fund for non-essential expenses, including holidays (22 percent), clothes or shoes (17 percent) and takeaways (11 percent).

Starling Bank says 8 percent of under-25s used it to buy tickets for Taylor Swift’s Eras Tour and 6 percent for Oasis tickets.

Clinical psychologist Dr Jenna Vyas-Lee said: ‘While rainy day funds provide security, they can inadvertently increase fear of the unknown, which can demotivate some individuals.

‘Saving for joyful experiences, on the other hand, focuses on building memories and promoting well-being, which resonates more deeply with human psychological needs. This approach is less about avoiding loss and more about creating meaningful profit.”