Three of my best friends are currently sitting in a hut on a sandy white beach somewhere in southeast Asia, halfway through their six month trip to the region.
They each saved somewhere in the region of £10,000 for this trip and plan to spend all of it.
With my financial journalist hat on I asked them, “Would you not want to put that money into a Lifetime Isa for a deposit?”
After all, we know the UK population is not saving enough, early enough for their futures.
They chuckled as my friend replied: “Our twenties are the time to be doing things like this, we can worry about that stuff when we’re older, plus we wouldn't be able to afford a house anyway.”
When scrolling through TikTok I realised many people in the same age category hold similar views to my friends.
I always come across endless videos of people flaunting their latest trips abroad with the mantra being: “Money comes and goes, but memories last a lifetime”.
In the comments, fellow Gen Z’s discuss “investing in themselves” rather than into their finances because experiences are “priceless”.
While others say even though they are broke, they are rich in the memories they possess and the people they have met.
Of course, no one is saying that the younger generation shouldn’t be allowed to spend their hard-earned money as they wish, I love a holiday as much as the next person.
But are these ways of thinking damaging Gen Z from developing good savings habits as we are led to believe by baby boomers and Gen X?
Many of my friends are moving back in with their parents because the cost of living on their own is just too immense.Although on the surface it may seem Gen Z are more preoccupied with seizing the day, in reality the current economic climate makes it difficult for younger people to have a solid idea of what their future will look like.
According to ONS statistics for November 2023, the average yearly salary for someone aged 22-29 living in the UK is £30,319.
The average rent in the UK is now £1,223 per year after seeing a 7.2 per cent growth in the last year.
That coupled with a cost of living crisis and high inflation leaves a very bleak picture for me and my fellow Gen Z’s.
Many of my friends are moving back in with their parents because the cost of living on their own is just too immense and leaves them with no disposable income.
Scrolling through Tiktok yet again, I came across a video of a pensioner being interviewed by PoliticsJOE who spoke about the UK housing crisis.
She said: “There are no houses for the youngsters. I really feel sorry for young people because they don’t have a chance of getting on the housing ladder, there is no hope for them.”
Other users in the comments agreed, reiterating the sentiment that people in their twenties can barely afford to rent, let alone buy a house.
Commentators in the past have said if younger generations want to save money they need to stop eating avocado on toast and drinking their oat lattes, but even if they do cut those things out the goalposts keep being moved further and further away from them.
According to Zoopla, the average sold price for a property in London in the past 12 months is £732,399.
Now I am no mathematician, but for someone in their twenties to even come close to affording that they would need to win the lottery.
It seems the odds are currently stacked against people in their twenties and their futures so when the outlook looks so bleak, can you blame them for wanting to have some sort of enjoyment in the present?
I can understand why people my age would want to spend money on something that is tangible and they can experience right now when the alternative of buying a house seems so unrealistic.
I don’t have the answers, but those who are quick to blame Gen Z for their financial situations and for living too much in the present should put themselves in the shoes of someone in their twenties.
Because when you are up against opponents like the housing market, the cost of living crisis and inflation, having a few moments of respite like booking a trip to Bali seems all too fair to me.
Alina Khan is a senior reporter at FT Adviser
