When you turn 18, saving your pennies is the last thing on your mind. You’re more interested in going out, buying a car, and all the other fun that money can buy.
But according to research from Halifax, digital banking is actually helping young adults boost their savings by making them more aware of how much they have – or haven’t – got in the bank.
Halifax’s Generation Save report found that young savers – 18 to 24-year-olds with savings accounts – are much more switched on, compared to the general population, to how digital banking can help them manage their money.
Four out of five young savers (81%) who use online banking (on a desktop computer) and 82% who use mobile banking said it makes it easier for them to save money.
Around three in five said it makes them more likely to move money into their savings account (59% online and 65% mobile) and four in five said it makes them more aware of their savings balance (80% online and 84% mobile).
65% of young savers who use mobile banking said it made them more inclined to move money into their savings, compared to just 25% of over-55s.
Giles Martin, head of Halifax Savings said: “This research tells us that online and mobile banking is actually helping a lot of young people to save.
“It’s clear that having easy real-time access to their savings balance, whether in their pocket or on their PC, is keeping saving front of mind.
“This is great news if it means that young people are getting into good savings habits early in life, particularly at a time when reaching those key milestones like buying a first car or first home can feel out of reach for many.”
Of the 12m Lloyds Banking Group customers who use digital banking, 7m use banking apps or a mobile browser, but more of the general public use online banking than mobile to access their savings accounts.
85% of the 5,055 respondents in the Halifax survey who had a savings account use online banking, while less than half that number (41%) use mobile banking.
When it’s broken down by age, there is a difference between younger and older generations, especially when it comes to mobile banking.
Of those with savings accounts, 90% of 18 to-24-year-olds and 81% of over-55s use online banking to access their savings. In comparison, 60% of 18 to 24-year-olds use mobile banking, compared to just 23% of over-55s.