Back-to-School Season: Young People Want to Save Money; One in Two Has Already Cut Back on Essentials
Putting money aside each month tops the list of back-to-school resolutions for 18- to 34-year-olds, ahead of exercise. Three surveys published in recent days—for Plum, the Caisse d’Épargne, and Crédit Agricole d’Île-de-France—depict a generation that compares prices, resells items, and shares expenses, but in which nearly one in two members has already gone without food or medical care due to a lack of funds.
Cooking more, reviewing subscriptions, walking instead of taking the subway, trying a month without spending. September’s New Year’s resolutions have taken on a new character. Among 18- to 34-year-olds, putting money aside each month is cited by 50% of respondents as their top resolution for the start of the school year, ahead of fitness and wellness (31%) and personal projects (24%), according to a Selvitys survey for the Plum savings app, conducted in August among 1,000 young adults. Ninety percent plan to save every month, and half have set a goal of more than 100 euros. One in two young adults (51%) says they’re ready to take on a “No Spend Challenge”—a month without unnecessary spending—with an expected average savings of 293 euros, 362 euros for men and 234 euros for women.
Behind these intentions lie very concrete actions: 23% want to cook more to spend less, 21% want to walk or bike instead of paying for transportation, 19% want to try a month of reduced consumption, 17% want to streamline their subscriptions, and 16% want to lower their energy consumption. The summer has taken its toll. 61% of 18- to 34-year-olds spent more than 500 euros during their vacations, and 33% spent more than 1,000 euros. “The start of the school year is traditionally synonymous with a fresh start, and our results show that young French people also want to take this opportunity to regain control of their finances,” says Victor Trokoudes, CEO of Plum.
At Least Three Habits to Stay on Budget
Saving money requires a daily effort. An OpinionWay study for the Caisse d’Épargne, published on September 1, shows that 69% of 18- to 24-year-olds systematically compare prices before making a purchase and that 75% use at least three strategies to preserve their purchasing power, compared to 51% of the French population as a whole. Secondhand shopping, reselling, hunting for discounts and cashback, using public transportation or biking, and splitting costs: those under 25 use far more strategies than their older counterparts. There’s a downside, however: 94% of them have cut back on at least one expense over the past twelve months, primarily on leisure activities (60%), clothing (57%), and vacations (45%).
There are limits to how far people can stretch their resources, and the Viavoice survey—conducted for Crédit Agricole d’Île-de-France among 800 residents of the Île-de-France region aged 16 to 30 from April 13 to 22—pinpoints exactly where those limits lie. Fifty-six percent say they are financially comfortable, and three-quarters say they have their budget under control. However, 47% have already had to cut back on essential expenses—such as food or medical care—due to a lack of funds, and 41% have been in the red for at least one month over the past twelve months. Financial independence remains the exception: only 33% report being financially independent—51% among those aged 25–30, but just 23% among those aged 18–24. For the majority, making ends meet depends on a combination of family support, scholarships, student jobs, or work-study programs, and 47% have already had to ask a relative for financial help.
Money Determines Educational Choices
Financial constraints weigh on making ends meet and, more subtly, on life paths. For 52% of young people in the Île-de-France region, their financial situation influenced their choice of studies: 23% ruled out certain schools or programs, and 28% opted for a less expensive program than the one they had originally aimed for. They estimate that they would need to earn 2,690 euros net per month to live comfortably. When asked what holds them back in managing their money, 76% cite the difficulty of planning ahead and making long-term projections—a lack of visibility rather than a lack of willpower.
Financial literacy remains lacking in key areas. Only 22% know that a guarantor is not required to obtain a student loan, and 43% are unaware that life insurance can involve risks. When seeking advice, 72% turn to friends and family, and 31% to artificial intelligence; only 36% of them turn to their bank when facing difficulties, even though 58% trust their bank. “What strikes us is not so much the carefree attitude we attribute to them as the resourcefulness they demonstrate in their daily lives,” notes Guy Poyen, director of marketing and markets at Crédit Agricole d’Île-de-France.
A generation split right down the middle, literally: 52% of young people in the Île-de-France region prefer to enjoy life now rather than save, while 48% make the opposite choice. And 43% believe they’ll be better off than their parents by the time they’re 40. Between a resolution made in September and an overdraft in November, the line is thin; it all comes down, as they themselves say, to the ability to look beyond next month.
