Younger Brits are proving to be savvier with their finances than older generations, a new survey has shown. The study, conducted by credit score app CredAbility, reveals that nearly 60% of young adults (18- to 34-year-olds) understand their credit score and how it works, compared to just 42% of over-55s.
The study also found that Gen Zs and millennials are grappling with lower income growth and are far less likely to own a home compared to their parents.
Further data showed that 34% of Brits aged 18-34 regularly use Buy Now Pay Later (BNPL) services for everyday purchases like groceries or clothes, while only 8% of older respondents said the same.
Younger generations are more likely to view credit as a financial tool, with 41% of those aged 18-34 saying they’ve used credit to manage unexpected expenses, compared to just 18% of those aged 55 and over. Whilst 67% of 18-34s have a monthly budget, compared to just 39% of over-55s.
A further 52% of younger people regularly review their bills and subscriptions, versus only 28% of older generations while 34% of under-35s have already started saving for retirement, showing a forward-thinking approach despite immediate financial pressures.
Lexi Burgess, Personal Finance Expert at CredAbility, said: “Young Brits are facing a tougher financial landscape. Rising living costs, stagnant wages, and sky-high house prices mean they’ve had to adapt by being more strategic with their money. They’re using credit to get by—but they’re also educating themselves to make the most of it.
“Budgeting apps, TikTok videos, and online communities have normalised talking about money and made financial knowledge more accessible, while the challenges they face—like rising rents and student loans—force them to be more financially savvy.
“For older Brits, financial habits may not have kept pace with the changing times. The poll revealed that 37% of people over 55 have never checked their credit score, citing reasons like finding it “confusing” or thinking it’s “not relevant” to them. This gap is partly down to generational attitudes. Older generations may not have grown up in a world where financial education was readily available. They also lived through a time when buying a home or managing expenses was often simpler and didn’t require such close attention to things like credit scores or online tools.”
