Adult Gen Zs could have netted more than £3.1bn last year - with this one trick.
A poll of 1,000 Gen Zs aged 18 – 28 found only 35 per cent have opened a Lifetime ISA account, where the government adds a bonus of 25 per cent to your savings, up to a maximum of £1000 per tax year, which can be put towards a first home purchase or a pension.
This leaves 65 per cent without a LISA and therefore unable to claim the lucrative bonus.
These adults are still saving £2,059 each year – but consequently missing out on £512.77 from the government.
And almost a third (30 per cent) haven't even heard of this method of making extra money, even though they could claim up to £1,000 annually.
Of those saving, 18 per cent are trying to put money together to fund a deposit for their first home and 13 per cent have already set their sights on a retirement fund.
If you were to open the account at 18 and pay in the full LISA contribution of £4,000 every year, you could earn as much as £32,000 of free money by the time you reach 50.
Rajan Lakhani, head of money at Plum, which commissioned the research, said: “There is a lot to know about personal finances, but a LISA isn’t something you want to ignore.
“It’s one of those things where the longer you leave it, the earlier you’ll probably wish you’d have got one.
“It’s not exactly completely free money as you have to do a little bit of work to set it up, and it can only be put towards a first home or a pension, but it’s fair to say the rewards often outweigh the effort.”
The study went on to find the vast majority (90 per cent) of young people are currently trying to save money.
And the average saver is able to put away just over £208 a month, with an average of £6,510 of savings.
But during a typical year, many will have to dip into savings five times - once every two months - to cover an unexpected payment.
And while they have around £6k in savings now, their outlook is very much long-term as they estimate they’ll need more than £42k for a house deposit.
The price of food (33 per cent) was voted the biggest blocker for making more savings, while 29 per cent cited their low income.
Just over a quarter (26 per cent) struggle with the cost of utility bills, and 18 per cent find their money is sucked up by online shopping.
More than one in 10 (11 per cent) also admitted to lacking confidence with their knowledge of personal finance.
With 57 per cent feeling overwhelmed by the sheer number of savings options available to them, according to the OnePoll.com figures.
Rajan added: “When you’re in your 20s, it can feel as though you have your whole life ahead of you to get on top of your savings.
“But anyone who’s in their 40s now will tell you, those years go pretty fast and you’ll wish you had started earlier.
“A little goes a long way, especially the earlier you start.
“Good saving habits in your 20s and 30s can have a huge impact on your quality of life when you get older.”
