Millennials may have a reputation for being financially frivolous but new research by Zopa claims they are actually among the most frugal as the new year begins.
A poll of 2,000 adults, dubbed as a study of the nation’s finances by the peer-to-peer lender, found millennials, those aged 24-39, are most likely to watch the pennies during what the platform describes as “Fruganuary.”
More than a third, 35 per cent, of Brits said they have less money in the first month of the year than in any other month, with 16 per cent saying that they struggle most the week before the January payday.
This is blamed on overspending at Christmas, increased energy bills and getting paid early in December.
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However, contradicting their generational stereotype, almost half of millennials and 37 per cent of those in generation Z – those aged under 23 – say that instead of splurging the cash they take sensible steps in January to avoid going into the red, in contrast with 31 per cent of the general population.
A fifth of those in generation Z said they often have more money in January than any other month, compared with just six per cent of the general population.
Of those that try to control their finances, the most common methods are not buying clothes, making packed lunches and not getting takeaways.
Others have taken part in fads such as dry January or Veganuary.
The majority of generation Z and millennials said they want to carry on these habits for the rest of the year, but most fall by the wayside after an average of five months.
“January is often considered to be the time when our finances are in worst shape, but our research shows by taking control, some groups manage to create positive financial habits at the start of the year,” Clare Gambardella, chief customer officer for Zopa, said.