The surprising amount of money 20-somethings already have saved up

People in their 20s are going out during the week, booking budget holidays with their mates and existing on a diet of fast food.

Right? Well, not according to recent data, which reveals that Gen Z are amassing a rather healthy nest egg before the age of 30.

A report from Starling Bank found that Gen Z adults have an average of £8,300 in savings.

Not only that, but the entire cohort (those born between 1997 and 2012) are now considered the most money-savvy generation, putting saving and investing at the forefront of their priorities.

According to the digital bank’s data, Gen Z is expected to save more than any other generation in 2026, squirreling away £4,848 this year compared to the national average of £3,602.

While this might come as shocking to some, notably the Gen Zer writing this article, there have been a number of signs over the past few years to indicate that while they might earn less, young adults are making all of the right decisions when it comes to their bank accounts.

From embracing digital banking tools to diversifying their income, Gen Z are taking their future wealth incredibly seriously.

Generation Z might still face extremely difficult financial circumstances – becoming young adults during a cost of living crisis – but their initiative when it comes to addressing these challenges is evident.

In 2025, the Bank of America commissioned a study providing a window into Gen Z’s money habits.

What it showed, was that this particular group of people are motivated to act when faced with financial difficulties or changing circumstances. For example, almost two-thirds of Gen Z reported taking action due to the rising cost of living over the past 12 months.

Moreover, when Gen Z is feeling stressed about their finances, the study found that 90% of participants were likely to take action to address this.

This included things like checking their bank balance (69%), making a budget to stick to (64%), getting ahead on paying bills (46%), and transferring money into their savings (42%).

‘It’s about daily habits that build wealth’

Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, offers up his own thoughts on why Gen Z might be saving more than any other generation right now.

The expert shares with Metro that Gen Z’s use of technology has played a massive role in this: ‘App-based budgeting, automatic transfers and a competitive savings market have made saving easier and more habitual. Gen Z has grown up with these tools as the default.’

The data from Starling Bank backs this up. For example, the findings revealed that 26% of Gen Z use a budget tracker (versus a national average of 15%) while 34% use a savings app (versus a national average of 20%).

And when they’re not being financially literate, 34% of Gen Z are investing time into a side hustle, once again putting their future financial position at the forefront of their minds.

For James Blower, the founder of Savings Guru, the biggest takeaway from the report is that ‘it it isn’t about having large sums of money to earn interest from, but about the daily habits we make with our money and savings to build wealth.’

He adds: ‘Gen Z are engaging in savings challenges, habits and other gamification of savings. Although they don’t have the larger sums of savings that other age groups have, they’ll putting away little and often through things like round ups, 1p savings challenge, pay yourself first etc.

‘Plus, they’re looking at their money more holistically. They’re doing side hustles, selling on Vinted, signing up for things like paid surveys – all building smaller sums of money up that is often being put in to separate savings pots and not used for day to day savings.’

‘They’ve yet to face some of adulthoods heftiest costs’

There’s also other factors at play here, though. Adam goes on to state that Gen Z saving more than other generations may reflect ‘economic reality rather than a bigger generational shift.’

‘Many have yet to face some of the heftiest costs associated with adulthood, such as childcare, mortgages and higher tax burdens, pressures that can push savings rates down.’

The savings expert adds: ‘For example, keeping a roof over your head is typically one of the biggest expenses for many households. But a lack of affordable options means a many younger adults are stuck living with their parents compared to other cohorts.

‘A silver lining is that delaying or avoiding these costs today boosts their ability to save for tomorrow.’

Adam’s points do make sense, especially when you consider the fact that the number of families with adult children living at home increased across all regions of England and Wales between 2011 and 2021, according to the office for national statistics.

Investing in property

However, Starling Bank’s data points to the fact that not all Gen Z are still stuck at home.

Out of the 2,000 national representatives polled by the bank, findings revealed that nearly one in 10 Gen Z adults have invested in property.

Moreover, according to data from Barclays, more than a third of Gen Z and younger Millennials (those aged 18-34) are aiming to buy their first home in 2026 – more than double the figure for the UK as a whole, which sits at 16%.

For many of us, being able to get onto the property ladder feels like a distant dream. Those who have achieved that goal, like Will James – a 25-year-old PR consultant, tend to have been able to do so solely due to generous help from family members.

He told Metro: ‘The days when buying a home to live in as you begin your adult life being the normal done thing are long gone. It’s now something only accessible to the very, very well paid, or those who luckily had family help. The lack of secure housing, and more importantly, places which are homes, creates real instability among my generation.’

But, perhaps, given Gen Z’s initiative when it comes to both saving and investments, this dream could become a reality for a number of young adults in 2026.

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