Youth: Young People & Money
Andrew Bailey, CEO of the Financial Conduct Authority has warned about the “pronounced build-up of indebtedness amongst the younger age group” in an interview with the BBC. The most worrying aspect of this high level of debt, he said, is that it’s little to do with “reckless borrowing” but is “directed at essential living costs.” Young people have been especially badly hit by the years since the financial crash in 2008: finding paid work – and sufficiently well-paid too – is very difficult today, and as rents have soared, finding and funding decent accommodation is extremely challenging. According to Citizens Advice, in the last two years there has been a 34% rise in the number of under-25s seeking help with high cost credit. The Resolution Foundation says the ‘adult millennials’ now spend three times more of their income on housing than their grandparents. Andrew Bailey said he does not regard this as a crisis – but it certainly is a ticking time-bomb.