How has the pandemic hit young people’s finances?

It’s no secret the pandemic has greatly impacted the mental wellbeing of many. Adults have been faced with redundancies, furlough, juggling homeschooling whilst working from home, and caring for less able family members and loved ones.

What about our young people? How have they been impacted?

Though data collected from the Opinions and Lifestyle survey found that 55% reported they expected their lives to return to normal within six months, highlighting they were generally more optimistic than adults, they have not escaped unscathed.

Similarly to adults, young people, aged between 16-29 reported that Covid was affecting their work. The most commonly reported impacts were a reduction in hours worked, concerns about health and safety at work, and having been asked to work from home.

Is it a surprise that almost a third of young people reported the Coronavirus was affecting their household finances?

New SpareRoom research shows that young people have been forced to borrow thousands, and seen their lives set back years.

What are they using the money for?

  • Bills (43%)
  • Food (39%)
  • Rent (32%)

22% of 18-24-year-olds have had no choice but to move back in with their parents.

As a result of the stress, 5% of 18–24-year-olds have borrowed money to pay for private mental health services.

Young people are unsure when they will be able to pay back the money lent to them, or even if they will ever be able to pay it back. 10% of 18–40-year-olds aren’t planning to repay their debts for at least four years, while some of them admit they have no intention of ever paying back their lenders.

With lockdown easing and workplaces reopening, hopefully, the financial hardship will lessen and opportunities for our young people will start presenting themselves, allowing them to get back on the track that will lead them towards a promising and prosperous future.

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