How good is your financial knowledge?
Are you on track to be the next Chancellor of the Exchequer or is your interest, quite literally, low, meaning you could brush up on your fiscal know-how?
Take this quiz to see if you’ve got an MBA in money or if you need to dig around the back of the sofa for more info.
It comes after a study revealed young Brits fed up with low interest rates from high street banks are looking to switch to more adventurous investments to get a better return.
Exploring creative options
The poll, of 1,750 millennials and Gen Z adults, found nearly a quarter are wanting to dabble in shares, while one in five are looking at cryptocurrencies and 18 per cent at valuable metals.
A daring 17 per cent are even considering betting small amounts on odds-on sporting events.
But 33 per cent are thinking of investing in Stocks and Shares ISAs, as young savers want to punish banks for failing to pass on higher interest rates.
It also emerged 65 per cent believe they are better placed to make their money work harder for them compared to older generations.
And 67 per cent think new technologies make saving and investment easier to understand.
Victor Trokoudes, founder and CEO of smart money app Plum, which commissioned the research, said: “It’s no secret that some conventional routes of saving are not what they used to be.
“That’s why young people are exploring newer and more creative options for growing their money.
“Nonetheless, stocks and Shares ISAs remain a top choice for many young people looking to grow their savings for the long-term.
“The tax benefits of ISAs remain very attractive, especially in light of the Government's forthcoming changes to allowances.
"However, investing does come with risk as returns aren’t guaranteed and the stock markets can go up and down.
“Financial knowledge is an old and venerable beast, and some principles never change - but at the same time, technology is making creative saving methods a more viable option alongside the more traditional routes.”
Setting money aside
The study, conducted via OnePoll.com, found 66 per cent of young adults would be likely to switch to a digital-only money platform, if it promised to help them save more than a high street bank.
And 18 per cent already bank exclusively with an online-only option, with a further 35 per cent using a hybrid system of both.
Just over a third (34 per cent) feel frustrated at how interest rates on borrowing for things like loans and mortgages have risen more quickly than they have on savings.
While 33 per cent are outright annoyed, and 23 per cent feel powerless to do anything about it.
But 52 per cent are somewhat inspired by wealthy online entrepreneurs, often seen on social media.
And 65 per cent believe the amount of financial information available online - in blogs, podcasts and elsewhere, helps them better understand savings and investments.
Of those currently saving, 40 per cent of millennials are doing so as an emergency fund, or a safety net for the future - compared to only 28 per cent of Gen Z.
But the next most popular thing both demographics are saving for is a knees-up holiday, while house deposits are being saved for by 24 per cent of millennials and 27 per cent of Gen Z.
Victor Trokoudes, from Plum, added: “No matter what you’re saving for, without good money practices you’ll have a hard time reaching your goals.
“Taking time to research not only the best savings options available to you, but the wisest ways of investing, can pay dividends in the future.
“At Plum, we try to make this easier through automation and AI so people can set more money aside.
“Our research has shown young people seem pretty savvy with their money and are looking for new ways to make their wealth grow over the long-term.”
What Millennials are saving for
- An emergency fund/ safety net for the future
- Holiday
- Home improvements
- House deposit
- Supporting their children
- A more comfortable retirement
- Paying off their mortgage off early
- To go travelling
- Paying off debts
- Car or other mode of transport
What Gen Z are saving for
- To go travelling
- An emergency fund/ safety net for the future
- To invest in the stock markets
- Holiday
- House deposit
- Pay off debts
- To start their own business
- Supporting their children
- A more comfortable retirement
- A new phone
