NatWest is encouraging young people to build healthy monthly savings habits with the new Couch to Cash: the £5K Challenge in conjunction with Team GB Olympic gold medallists Alistair and Jonny Brownlee.
New research suggests under 35s are embracing a ‘spend now, save later’ mindset when it comes to planning ahead in their finances – with a quarter having £500 or less saved.
While 18–35-year-old Brits have an average of £9,579 in savings, one in four don’t have any savings set aside for emergencies, with almost half (49 per cent) citing a lack of disposable income and 29 per cent prioritising saving for other things instead.
New research of 2,000 young people aged 18–35, commissioned by NatWest, has delved into the savings behaviours of younger generations– with 60 per cent saying they rely on bonuses from work or gifts from family to top up their savings pot each year.
To mark the launch of the new Couch to Cash: the £5K Challenge, the Brownlee brothers have unveiled the challenge in a light-hearted video, as well as providing some helpful tips to tackle the key barriers to saving.
The study revealed the top hurdles for young Brits when it comes to saving are:
- Cost of living pressure: Lack of disposable income to put into savings (33 per cent)
- Emergency first: Only having enough put away for an emergency (17 per cent)
- Debt repayment: Paying off credit cards / student loans / overdraft (17 per cent)
- Economic uncertainty: Focussing less on saving due to economic factors that are out of a person’s control (16 per cent)
- YOLO lifestyle: Prioritising short-term plans or activities over longer-term goals (15 per cent)
- FOMO: Fear of missing out on activities with friends (12 per cent)
- Irregular income: A freelance or ‘gig worker’, making it more difficult to put money away regularly (10 per cent)
- Changing life milestones: Not having traditional goals to save for i.e. kids, engagement ring, house deposit (10 per cent)
- Not knowing where to start: Uncertainty on how to begin planning (9 per cent)
- Lack of financial knowledge: About how and where to save (8 per cent)
No strangers to a challenge, Alistair and Jonny know what it takes to work towards a long-term goal and are calling on the younger generation across the country to think about their own saving challenges and ambitions– and most importantly, get started on working towards them.
Jonny says: “Whether you’re looking to save £5k, £500, or even £50 in 2025, it’s important to think about your own savings goal now to help you plan ahead for your future.
“Starting is often the hardest part, but by setting yourself a target that’s right for you and planning the steps to get there, that’s already the first part of the challenge complete!”
Mo Watt, Savings Expert from NatWest, said: “Savings can feel like a difficult task, especially for younger adults, with one in 10 telling us they don’t know where to start. Breaking down your saving ambitions into smaller targets can help make the process more manageable, and we encourage our customers to take a little more action with the help of our Savings Goal Tool. Starting small today means you’re already taking action to plan for your tomorrow.”
To join in the Couch to Cash: the £5k Challenge, you can set a monthly savings goal to reach your targets – whether that’s £5k or an amount that feels right for you, based on how much you can afford or how quickly you want to reach your goal. NatWest customers can use the Savings Goal Tool within the app to schedule regular payments and track their progress.
NatWest experts have shared some of their top tips for saving, including:
- Focus on your future self – Taking the first step can be tough, but keeping your ultimate goal in mind will help you stay motivated, whether you’re saving for that big adventure, building your financial safety net, or planning for the future.
- Visualise your goal – Having a clear picture of what you’re working towards makes it easier to stay on track in the long run.
- Small steps can help you reach your goal – your initial goal doesn’t have to be for the full amount. Instead, focus on what’s achievable in the short term and celebrate small wins along the way
- Loud budgeting – By sharing your financial goals with your friends and family, you’re more likely to stay committed and resist the temptation to overspend.
- Celebrate your savings wins – Whether you’re reaching those milestones or still on the journey, acknowledging your progress and even sharing it with others can help keep you motivated.
- Small habits can lead to big results – consistency is key when it comes to saving:
- Set up a regular payment into your savings, like a standing order on payday – that way you reduce the chance of unplanned spending that’s not aligned to your goals.
- Take advantage of NatWest Round Ups, a simple tool that automatically rounds up your everyday transactions to the nearest pound and transfers the spare change into your savings account – helping you save effortlessly over time.
- Look for ways to boost your savings, such as cashback offers or rewards from your bank account. If you’re a NatWest current account customer, you can also get rewarded for your everyday banking, which you can put straight to your savings.
- Try to set a timeline by when you want to achieve your goal – Instead of just aiming to save, try setting a specific timeframe for when you want to reach that savings milestone. Having a deadline, even a flexible one, can keep you focussed and motivated.