Faced with growing spending constraints, 18-35 year olds are finding it increasingly difficult to manage the purse strings.
200 euros per month for housing charges, 300 euros for bank charges or 100 euros for transport. A growing number of 18-35 year olds are facing an explosion of constrained expenses. A danger for this public not always accustomed to managing a sometimes tight budget. The multiplication of small amounts can make them lose the notion of price and increase the risk of unnecessary expenses. This is the conclusion of a new study* carried out by Papernest with the polling institute Poll & Roll.
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Constrained expenses are regular withdrawals from bank accounts. This form of transfer is far from new. Certain recurring expenses have always existed: rent and house charges, repayment of bank loans… Nevertheless, the study points out that their number has exploded in recent years. A model “American style», according to the words of the survey, which makes it possible to consume on credit without paying a high price thanks to subscriptions, is gradually taking hold.
Non-existent just a few years ago, video streaming subscriptions (Netflix, premium video, etc.) are now used by 75% of 18-35 year olds. Similarly, 47% of this age group has a plan to listen to music (Spotify, Deezer, etc.). Consumer loans are also on the rise. Nearly three-quarters of respondents (71%) say they have limited spending on capital goods. And these subscriptions accumulate to such an extent that 38% of respondents have at least five.
A danger to the budget
Behind this apparent ease this hides several risks for users. The division of the price into multiple small amounts spread over time, the multiplication of interest rates and insurance, lead to a loss of the notion of price. A feeling shared by 71% of respondents. As a corollary, the risk of living beyond one’s means and the obligation of having to suddenly lower one’s standard of living to avoid going straight into the wall. For example, 45% of respondents explained that they had already turned off the heating in winter to save money.
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Another point raised by the study: the proliferation of so-called “ghost” subscriptions. These are regularly paid subscriptions that are completely unused, such as a gym membership that the subscriber never goes to. A phenomenon that affects 44% of 18-35 year olds surveyed. First cause of this error:the first month free that you forget to cancel(52% of respondents concerned). Worse, 30% say they continue to pay for one or more unused or little-used subscriptions.
*Representative sample of 1000 people, data collected between May 30 and June 7, 2022.
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