A quarter of young people are skipping meals to save money as financial struggles hit students

An increasing number of 18-24-year-olds are reporting increasing financial struggles, with over a third of young people worried about being able to afford rent as they cut back on other spending.

Almost half of young people in this age category are in ‘financially risky’ situations, with a report by Fair4All Finance finding that this is caused by increasing rent payments and unstable or underpaying jobs.

Amid the cost-of-living crisis, increasing financial struggles mean that many 18-24-year-olds are having to cut back on expenditures, including meals, to afford rent.

25% of young people in the study said they had skipped meals in order to save money to cover other costs. 29% of young people have also taken on more debt, while 22% have been rejected from accessing credit cards or seeking loans.

The lack of financial preparedness among young people in a time of sky-high prices is likely the result of a lack of financial education

As a result of rising costs, young people, especially in the past six months, have been forced to resort to methods such as ‘buy-now, pay-later’ services – often seen as a quick, easy fix to payments. However, these services offer only a temporary fix and can have detrimental effects on credit scores.

30% of young people in the UK have also said they have no savings and are worried about rent, with wages and the state of the economy affecting the finances of young people.

The lack of financial preparedness among young people in a time of sky-high prices is likely the result of a lack of financial education. Educational institutions are often criticised for their lack of action in educating students on critical life skills, such as managing finances and budgeting. One report, published in February, revealed that three in four teachers think young people are leaving school or college without important money skills.

The stark reality is that many students are heading to university this year worried about how they can afford their next meal and pay rent at the end of the month

Diane Burridge, Interim Director of Development at Fair4All Finance

Diane Burridge, Interim Director of Development at Fair4All Finance, added that a lack of financial education leaves students “vulnerable” to rising costs and “struggling to make informed decisions about their money”.

She added: “The stark reality is that many students are heading to university this year worried about how they can afford their next meal and pay rent at the end of the month. For some, these money worries could make or break their studies and hold their careers back when they’ve barely started.”

The report has emphasised the need for financial literacy for young people, as well as long-term economic stabilisation to create a stable environment for young people to thrive financially.