Almost a quarter of Brits do not save anything each month, new research has found.
Shepherd's Friendly looked into Britain's saving habits, with the study also finding generational differences.
It found Gen Z saves around £100 more each month than Gen X.
Those aged 18-24 save £410 on average compared to those aged 45-54 saving £310.
Shepherd's Friendly said this could be down to the higher cost of living inspiring young people to save more for the future.
The average amount saved each month in the UK is £330 with Londoners saving more than any other city, putting away around £550 a month.
However, it found 23 per cent of Brits do not save anything at all each month.
Derence Lee, chief finance officer at the mutual said using Isas could be key to growing savings in the long-term.
Lee said: "Saving money can be a challenge for many of us, particularly due to increases in the cost of living.
"Using Isas to your advantage can be a great way of building savings in the long term.”
The study comes a month after Bank of England data showed savers put £4.2bn into cash Isas in May.
Lee said using round-up tools could be a useful way for people to save a little each month.
“A painless way to save small amounts that add up over time is to use round-up saving tools," said Lee.
"Many banks and financial apps offer round-up features that automatically round up your purchases to the nearest pound and transfer the difference to your savings account or Isa.”
tara.o'connor@ft.com
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