POUND NOTES
Research by digital financial coaching app Claro, claims that more than third of under-30s in the UK, earning £40k p.a. or higher are HIPPYs – ‘High Income Perpetually Poor Young’, regularly spending more than they earn, despite having a good salary.
This problem is exacerbated by poor financial habits, the study reveals, with 42% of high-income under 30-yearolds admitting to having no monthly budget to track their spending against income (compared to just 29% of the age group as a whole).
This group also struggles to save or maintain an emergency fund, with only 25% having money set aside in a regular savings account and only 29% having a basic investment such as an ISA in place. This group is also failing to make longer term plans. 75% of high earners under 30 have not started a pension.
Stacey Lowman, Financial Coach at Claro (claromoney. co.uk) said: “A high income doesn’t protect us from financial worries. Earning a lot of money can often mask poor financial behaviours.
“The money will continue to disappear if there’s a hole in your pocket. For others, they may feel that they can never earn enough. No matter how much their income increases, factors like lifestyle inflation seduce them onto a perpetual cycle of always needing more.”
The average UK house price slipped by 0.5% in June as the full stamp duty holiday came to an end. It marked the first monthly fall since January, indicating that the peak of buyer demand is now likely to have passed, according to the research from Halifax.
But typical property values were still more than £21,000 higher than a year earlier. The price drop meant annual house price inflation eased slightly from May’s 14-year high of 9.6% to 8.8%. Across the UK, the average house price in June was £260,358.