IELTS Writing Task 2: Young People and Saving Money

It is widely reported that many people in their twenties have little or no savings. This is partly the result of economic pressures beyond their control and partly the result of modern spending habits, but there are effective ways to help young people save more.

The most significant reason is the cost of living. In many cities, rents have risen much faster than wages, so a large proportion of a young person’s income is spent on housing before anything else is paid. At the same time, starting salaries are often low, and many young people also have student loans to repay. The second reason is that spending has become extremely easy. With online shopping, food delivery apps and contactless payments, money can be spent in seconds, often without people noticing how much they are using. Social media adds to this pressure by constantly promoting new products and expensive lifestyles.

Several measures could encourage young people to save. The first is better financial education. If schools taught practical skills such as budgeting, interest and the long-term benefits of saving, young people would be better prepared when they start earning. Secondly, saving can be made automatic. Banks and employers can offer schemes that move a small percentage of each salary into a savings account on payday, so that people save without having to make an active decision every month. Governments could also support this, for example by adding a bonus to the savings of young people who are saving for their first home.

In conclusion, young people find saving difficult mainly because of high living costs and the ease of modern spending. Financial education and automatic saving schemes would make a significant difference.