What Financial Freedom Means To People

Attitudes to money differ between generations. And what our grandparents would have associated with the feeling of financial freedom is likely to be totally different to how millennials and Gen Z’s feel.

Barclays asked people about financial freedom and just 39% of the people asked said that they felt financially free right now. And the average person didn’t expect to achieve financial freedom for another 12 years. That might be because they’d hope to be in a higher paying job by then, or have their mortgage paid off within that time.

But it’s also about what’s important to you. For some people it might be bricks and mortar so paying off a mortgage may make you feel financially secure. Whereas for others it might be being able to book a holiday without much thought as you have the financial means to do it.

Despite being hit the hardest during the pandemic research by Clearpay shows that millennials and Gen Z are the UK’s best savers. The research showed that 68% of Gen Z and 61% of millennials budget and save more responsibly than their older counterparts. And perhaps that’s because life is more expensive now than it was for previous generations, so budgeting is much more of a neccessity.

Financial freedom for millennials

When Barclays asked people to define what financial freedom meant to them, and 38% of millennials said it was having disposable income at the end of each month.

38% of millennials said it was paying off their bills in full that felt like financial freedom to them. And a further 29% of millennials said financial freedom to them was being able to treat themselves without worrying about their bank balance.

I’m firmly a millennial and definitely agree with the feeling that being able to treat myself and not have to say no to things because I can’t afford it is what financial freedom means to me.

Financial freedom for Gen Z

When Gen Z were asked the same question 37% of people said being able to stop full-time work was what financial freedom for them. 32% said being on track for early retirement was a signal and 29% said not being afraid to check their bank balance felt like financial freedom.

It seems that for Gen Z that work-life balance is super important and impacted their view on financial freedom. And with more people than ever before self-employed, this may play a part in. The generation wants to work smarter and not harder.

What does financial freedom mean to you?

Not worrying about spending

For some people, it’s as simple as not having to think before buying items and being able to have those treats.  Joanna from My Anxious Life said: “To me, it means not having to budget for every spend, or worry about every bill. It means being able to take the kids for special trips whenever we want to or have a nice meal out. It’s not about having loads of money. It’s when money isn’t constantly weighing on your mind – that’s financial freedom to me.”

And Laura from Three Little Zees agrees and said: “For me, it would be going to the shops and just buying what I actually want instead of need without worrying about it “

Having choice with your job

For a lot of people, it’s about that work-life balance and not having to work or say yes to everything.  Lindsay from Scottish Outlander said: “Financial freedom means choice. It means working because you want to, not because you have to. It means more time for passion projects and family and friends. And it means living life the way you want to live it.” The thought of working just for passion is so empowering.

Joseph from Thrifty Chap said: “To me, it’s being able to do the job I want to do, not chasing after one which I need to do. Time for family, seeing kids grow (childhood is so short), volunteering time and enjoying hobbies, all without the worry of finance.” The idea that you can spend more time doing the things you truly love and not working 40+ hours a week is a big thing.

Pete from Household Money Saving said: “Financial freedom means that I could cut down my hours at work or look for another job without having to worry about how much it paid.” I do totally agree with this, I’d love to be financially secure in later life that I could work part-time. A lot of people get stuck in dead-end jobs or in industries they don’t love as they don’t have the financial security to retrain or go into a new field and start all over again.

Not having debt or being able to think ahead

For me, a big indicator of financial freedom would be paying off my mortgage. Rowena from My Balancing Act said: “For me, it would be being debt-free – something I’m aiming to achieve but a long way off at the moment!”

Whereas for others the idea of knowing you’ll be secure in your older age is a strong indicator of financial freedom. Jo from Tea and Cake for the Soul said: “Financial freedom to me is having enough money to have a comfortable retirement that allows us to travel and explore. After all we spend our whole lives working so retirement should be enjoyed.”

Being able to help others

Gloria from Mums Invited said: “Financial Freedom means that I can afford to live the life of my dreams, enjoy little luxuries without feeling guilty. I have enough and I’m able to leave an inheritance for my children. So, they start off life better off than I did. And importantly, to be financially free means I have more money to give. I’m able to make more impact. I can make a real difference in the life of others especially those that live in poverty in my home country, Nigeria. That’s one of my biggest dreams. To help others get out of poverty.” 

What does financial freedom mean to you?

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