Financial Expert Urges Young People to Invest for Future Stability
- Financial Expert advice young people to create saving pots
- UK statistics shows a decline in savings
- young people express concerns
A financial investment expert has advised young people to consider creating investment pots to help mitigate financial crises and unforeseen events in 2024.
Recent statistics from the UK savings market underscore the importance of this advice. According to data, UK households deposited a net amount of £0.3 billion with banks, building societies, and NS&I accounts in July 2023.
However, in August 2023, the sums deposited were equal to the sums withdrawn, resulting in net deposits of zero. This represents a significant downturn in savings compared to the previous year, where net inflows in September and October 2022 were £8.1 billion and £6.2 billion, respectively.
Aamna Mobashar, a portfolio analyst at Stephens and Co Limited, highlighted the importance of early savings and investment. “I would advise young people to start saving at an early age. If you are 18 or older, consider opening a pot where you can invest for unforeseen events and save for the future,” Mobashar stated.
Young People express concerns
Raphael Jones, 24, from Manchester, shared his goals for the year. He said: “I have big plans this year. I just want to make the right decisions in saving for those plans. Last year was tragic; I still owe money, but this year I am hoping to save more,” Jones said.
Genevieve, 21, emphasized the reality of financial crises and the need for better financial education. “Financial crises are real, and there should be more education on it. Organizations should form alliances with experts to guide us on some resourceful steps in saving to solve some of our spending problems,” she suggested.
experts advise to young people
Mobashar concluded with a strong message for young people about the long-term benefits of saving and investing. “Young people should cultivate this method in their lives. Saving is a good initiative. Investing at a young age will go a long way to shape your future,” she advised.
The decline in savings highlighted by the recent statistics points to a broader issue of financial preparedness among UK households. Experts like Mobashar believe that early investment and disciplined saving can provide a safety net during economic downturns and unexpected financial challenges.
In light of the current economic climate, the advice from financial experts is particularly pertinent. With many young people facing uncertainties in the job market and the broader economy, establishing a habit of saving and investing can offer some financial security and peace of mind.
Organizations and educational institutions are also being called upon to play a more active role in promoting financial literacy. By partnering with financial experts, they can provide valuable resources and guidance to help young people make informed decisions about their finances.
As the year progresses, young individuals are encouraged to take proactive steps in their financial planning. By opening investment pots and prioritizing savings, they can better navigate the financial uncertainties of the future and work towards achieving their long-term goals.