Many young people are planning to increase their spending in 2017, and would rather spend than save, a recent study has shown. It makes DNB Nor bank uneasy.
In a biannual survey carried out by Ipsos for the bank, it emerged that 50% of respondents, aged between 18 and 29 years, have no financial ‘New Year’s Resolutions’ for the year just begun.
46% of the young people responded that they plan to spend more money. Of these, two thirds believe they will spend more on general consumption, travel and leisure. Only 13% will increase their spending on housing. 6% believe they’ll spend more on debt repayments, and just 4% think they’ll increase their savings.
The times can become tighter
DNB’s head of retail banking, Trond Bentestuen, is worried that so many of the young people who plan to spend more money, prioritize spending rather than saving.
‘We have to teach young people that they actually need to save money and use common sense’, he told NTB news agency.
He pointed out that though these are good times in Norway, people need to plan for the very real possibility that times may change.
‘There is no doubt that people have high confidence in their own economy, which is reflected in these indicators of spending and saving. But it is also clear that the times can get tighter’, he said.
Source: NTB scanpix / Norway Today