Half of Young Adults Struggle to Cover Basic Living Costs, Study Finds
A survey shows only 49% of 18-24-year-olds can meet everyday expenses each month, while many rely on credit and face high housing costs.
A recent study conducted by the Personal Finance Research Centre, University of Bristol, with StepChange Debt Charity and NatWest Group funding, indicates that only 49% of 18- to 24-year-olds can afford essential monthly expenses. Across all ages, 57% report financial independence from relatives. Among StepChange’s 18-34-year-old clients, 44% have taken loans for housing and 49% earn insufficiently to cover basic costs, with three-quarters having used credit before turning 21.
Executives highlighted that high housing prices and a challenging labour market are delaying independence and increasing debt risk. The pandemic’s legacy continues to hinder career progression for a third of young adults, while credit-card defaults are rising according to recent Bank of England data. Experts call for targeted assistance to improve housing affordability and early financial support.
Why it matters
Young people's financial strain signals broader economic challenges that could affect future consumer stability.
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