More and more young people are formally budgeting as a result of spiralling rent costs and tuition fees, according to research from SunLife.

At the same time the number of older people budgeting has actually fallen, with students now 71%  more likely to budget than their parents (up from 59% more likely last year).

Young people (18-24) are the most likely of all age groups to keep close track of their finances, with 60% saying they formally budget, up from 59% last year.

Silver spenders

Among their parent’s generation and older (over 55s) just over a third (35%) formally budget, down from last year when 37% said they formally budget.

One in six (18%) of those aged 55 and over admit to having either no idea or only a rough idea of their day to day finances and for the 45-54s, it is one in five (21%). But amongst the 18-34s it is just one in seven.

Ian Cooper, head of savings at SunLife said: “It is encouraging that younger people are taking such a healthy approach to their finances, and while this may just be because there is more technology available to them so it just comes more naturally, it could be because they have to.

“According to NUS/Unipol research, student rent has increased by 18% in the last two years, with average rent in London now £265 a week and £134 across the rest of the UK while universities can  currently charge up to £9,000 a year in tuition fees, with the cap increasing to £9,250 next year.

“When you combine the accommodation costs and tuition fees with other expenses like food, travel, books and other equipment, students are looking at more than £21,000 a year just to study.”