Spending Power Report reveals financial concern amongst the young

Consumer confidence is growing, according to the latest Lloyds Bank Spending Power Report, as the index has reached a record high of 164 points.&…

Consumer confidence is growing, according to the latest Lloyds Bank Spending Power Report, as the index has reached a record high of 164 points. 

The trend has been driven by an increase in the number of people who have disposable income (up two percentage points to 80 per cent), as well as a five percentage point rise in the way people view their personal financial situation and a two per cent increase in how consumers see their household finances. 

Despite this apparent optimism, there are still some very real concerns about the state of peoples' finances, particularly amongst the young. 

Overall, less than one-fifth (19 per cent) of respondents were confident they would have more money in six months' time. This may be partly due to concerns over securing a job, as 63 per cent of Britain's young singles believe the employment situation in the UK is not good. 

Claire Garrod, head of personal current accounts at Lloyds Bank, said: "The degrees of confidence (in spending power) are very different for different consumers. Empty nesters are feeling more positive about their personal finances than younger generations, who have greater concerns about the employment market and saving for the future." 

Among the young, just 31 per cent expect they will be able to save more in six months' time than they do currently. 

Just 16 per cent of families who have debt said they would expect to pay more off their cards and loans off in the future, but this dropped to just ten per cent of older people, who were clearly less hopeful about paying off debt.  

Rather worryingly, the report revealed that people have a propensity to spend any spare cash they have, regardless of their age. 

So-called empty nesters are the most likely to save any money they may have left over at the end of the month, with 33 per cent stating they already do.  

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