Young adults in the UK are still prioritising ethical savings options despite the cost of living crisis, a new study has indicated.

Research published by Gatehouse Bank suggested that this marks a shift in attitude compared to older generations.

According to the findings, which were based on a study of 2,000 people, almost two thirds (65%) of those aged between 18 and 24 would continue to choose an ethical savings account in the current economic climate, which would remain the case even if it would offer lower financial returns than a non-ethical alternative.

Similar attitudes were not observed among other age groups, however, with just over a quarter (27%) of those aged between 45 and 54 saying they prioritise ethical savings, and less than a fifth (18%) of both the 55 to 64 and over-65 age groups indicating they would do so.

“It is encouraging to see young people continue to prioritise their values amidst the cost of living crunch,” commented senior product manager at Gatehouse Bank, Ravi Kumar. “We are hopeful that the latest generation of savers are the most ethically conscious yet.”

However, the research also found that over a third (36%) of respondents revealed the current economic pressure has lowered their interest in ethical savings options.

While many feel that strong financial gains and ethical choices are mutually exclusive, Gatehouse stated that this is “incorrect”, as lenders can provide options that allow people to align finances with their values.

“The stark generational divide does reinforce the need to boost awareness around non-traditional savings methods,” Kumar added. “Finance and ethical values can and should work in tandem – they are not mutually exclusive.”

Share Story: