Saving for the future doesn’t mean missing out on fun

There are ways young people can save sensibly for years to come without foregoing all the good times now, writes Charlotte Armitage

The term “pre-pandemic” is thrown about a lot. A time before travel restrictions, lockdowns, 5K run challenges and banana bread mania took us by storm has taken on an almost sacrosanct quality as we look back at pre-2020 through rose-tinted glasses. But how much have the last two years really changed our lives and priorities – is it true that lockdown has altered the way we act, think, do and spend for good?

The key thing to note is that everyone experienced a different version of the pandemic. For some it was a case of ordering an office chair with next-day delivery and hunkering down to work from home – creating an opportunity to turn cash previously earmarked for a lengthy commute or regular after work drinks into a healthy savings pot. Others faced furlough, reduced hours and even redundancy. The result is that now, as we can finally look to the future with cautious optimism, the playing field has never been more uneven.

And that’s where the internal battle is created. We all deserve to treat ourselves to the things we missed out on for so long – and, in fact, new research from the Royal Bank of Scotland has revealed that nearly half of 18–35-yearolds in Scotland view spending money on fun as more of a priority post-lockdown. Undeniably though, every time we hit “proceed to checkout”, there’s a niggling feeling in the back of our minds saying that we should be saving up for something “worth it”, and as many as 85 per cent of us feel guilty when we splash out on ourselves.

This sense of “financial FOMO” – the worry that we’re not saving as much as our peers and will never be able to catch up, but somehow, simultaneously, we’re missing out on memories because we’re trying to be sensible – has led to nearly two-thirds of young people admitting that they feel pressured by their friends to spend, spend, spend – even when they can’t afford to. With cost of living on the up, this anxiety is only growing and nearly eight in ten (79 per cent) admit that they need to take a look at their outgoings and rethink their spending in the wake of soaring energy costs.

So, what can you do? The key to managing your money is figuring out your priorities. Where do you see yourself in five, ten or 15 years? Visualise your future and work backwards to create a plan of how to get there. It might seem like the simple solution but don’t be tempted to go cold turkey with your spending – it won’t help in the long run. In fact, just over half (51 per cent) of young people don’t have a monthly budget set aside for having fun and this is often the reason they fall at the first hurdle. Map out what’s important to you, set a plan and remember to reward yourself along the way.

Royal Bank of Scotland’s latest campaign wants to help young people find a balance. Through features on its mobile app such as spending pots and budgeting tools, the bank wants to support young people in making a realistic plan for their money which allows them to enjoy moments of joy in the everyday, while working towards a bigger dream. Charlotte Armitage is a social psychologist with the Royal Bank of Scotland