A new survey conducted by The Open University (OU) explored the impact of the cost-of-living crisis on young people aged between 18-24.
The results showed how rising costs are negatively impacting young people, forcing them to cut back on their spend. Young adults are unfortunately facing an increase in living costs that are negatively impacting their ways of living, hindering their financial growth, and keeping them stagnant in their careers.
Almost a third (32%) of the young people surveyed are already feeling the impact of inflation. This is seen by the sacrifices they are already making, including living with their parents, having two jobs, using their cars less, cutting back on subscriptions and reducing their spending on takeaways.
Due to the current financial uncertainty, over half (55%) of young people also reported that they are actively seeking higher-paid jobs to combat inflation or high living costs.
To that end, 14% of respondents believe they need an annual salary of at least £35,000 to live comfortably in London. However, seeking a high-paid job is not as simple as it seems, with over half (53%) reporting that a well-paid job is harder to find in this day and age.
While many students want to go to university, this year one in 10 (9%) are intending to postpone or delay any study plans, whilst 12 per cent are considering less expensive courses.
Martin Upton, a Senior Lecturer in Business at The Open University commented:
“Everyone is feeling the pinch, but people might not realise just how much it is affecting the younger generation. Although financial anxiety is at an all-time high for all, it’s particularly difficult for young people since they are making vital decisions at a crucial point in their lives. It is a shame to hear so many are rethinking their plans for university study.”
Martin recognises the importance of university for access to high-paid careers and cites options such as The Open University flexible learning scheme as a way for young people to get the degree they need in a more financially accessible way.
The scheme allows students to complete their studies around a full-time job so that they can learn and earn. Martin views university as an imperative route for young people to sustain well-paid jobs:
“Now is a better time than ever to be investing in your career and getting that all important job that pays well. Research by the Institute for Fiscal Studies (IFS) shows that having a UK university degree adds £100k or more on average to lifetime net earnings. So, despite the financial uncertainty that young people are facing, and while higher education seems like a big financial commitment, in the long run it will pay off.”
Registration for The Open University courses is open until 8th September. Find out more here.