The way we save, spend, and think about our finances looks completely different today than it did even a decade ago. Money habits have changed, as have many of the financial pressures.
So it's easy to see how understanding those differences, appreciating what younger customers expect, and balancing an offering that can appeal to all generations could be tricky.
Lets take a look at some of the stats around money habits.
Goal-setting and saving
More than three-quarters of Brits have money goals for 2025.
But dig a little deeper and you'll spot a striking pattern: nearly all young adults (a massive 94% of 16-34 year-olds) have set financial targets, while just 61% of the over-55s are doing the same.
It turns out that while most Brits are thinking about their financial future, it's the younger generation that are more target oriented. Which makes sense - they're more likely to be in the market for their first home, or thinking about starting a family.
Young people are serious about budgeting. In fact, 40% say they feel motivated to save. Great news for banks and building societies.
But around 20% admit they're stressed about money - not surprising given the rise in living costs and the unrelenting rise of house prices.
To overcome this, many have embraced trendy approaches like "Loud Budgeting" (basically being upfront about not spending money on things) and "Soft Saving" (a gentler, more flexible way to build up savings over time).
Automatic transfers have become a go-to strategy too, with 39% of Brits now transferring money into savings without having to think about it each month.
Money traps
Despite these good intentions, young adults still fall into spending traps - especially ones triggered by social media.
People aged 16-24 are 51% more likely to make impulse purchases online than older groups, often driven by FOMO (fear of missing out), especially in a society where instant gratification is so commonplace.
That's not to say social media influence is all bad - they’re actually becoming places where financial education can happen too. In fact, according to research from Santander, one in five parents now believe their children are more likely to learn about money from social media than from them.
And while that presents a great opportunity for children to learn in the places they spend time online, the potential for misinformation, sponsored/biased content and unrealistic lifestyles dressed up as advice is a problem.
That's why guidance from parents, schools or trusted institutions is so important.
Buy now, worry later?
The Buy Now, Pay Later boom shows no signs of slowing down. In 2025, 42% of UK adults have used these services (up from 36% in 2023), and another 9% plan to try them soon. Before long, more than half the country could be splitting payments this way.
But there's a worrying trend here too - over half (53%) of Buy Now, Pay Later users got hit with late fees in 2023. Many people are jumping into these payment plans without fully understanding the risks.
Combine that with the impulse buying that social media often triggers, and you've got a recipe for financial ruin.
But this creates a perfect opening for building societies to step in, offering valuable, clear guidance about responsible borrowing. With 15% of Brits wanting to improve financial literacy in 2025, and 68% saying that learning about savings in school would have helped, this only emphasises the opportunity for building societies to provide that financial education.
Winning over tomorrow's savers
Taking all of this on board, how can building societies connect with younger savers, in particular? It could mean a change in approach. Here's what we'd do:
Make digital feel natural - Young people expect smooth, intuitive experiences. Clunky savings apps won't cut it anymore when they're used to one-tap everything else.
Speak their language on social - TikTok and Instagram aren't just for dance trends. They're where the younger generation spend a lot of their time - meeting them there to share valuable financial advice and improve financial literacy is an opportunity to connect.
Create savings accounts with purpose - Products tied to specific goals like buying a home, building an emergency fund, or saving for travel resonate more than generic savings accounts.
Champion financial well-being - Being transparent about money matters, including the pitfalls of options like BNPL, can position building societies as trusted guides rather than just service providers.
The opportunity
Building societies have traditionally focused on older, financially settled customers, and that's fine.But with 26% of young adults embracing more innovative savings approaches and showing growing interest in financial literacy, there's a huge untapped market waiting.
Offering digital services is an absolute must, and by creating products that solve real problems for younger savers, as well as providing genuinely useful financial advice, building societies can ensure they stay not just relevant, but genuinely resonant with the younger generations.
As our Managing Director Michael Hartig agrees, “The traditional values at the heart of building societies - community, trust, and doing the right thing - are not “outdated”. They're actually exactly what Gen Z is searching for.
The thing Building Societies need to do is make sure younger people see that those values live on within their organisations. With clearer communication, better tech, and more open conversations, Building Societies can do that.”
