True or false: millennials are bad at managing money?

The number of homeowners choosing to improve their current residence rather than move is increasing, with approximately four million households a year undertaking some kind of home renovation. High property prices along with the cost of moving are key reasons for staying put, with a building project often a cheaper way to create some extra space.

HOME-Consultations

Projects may end up costing more than intended though, with 40% of homeowners exceeding their original budget according to the Hiscox Renovations and Extensions Report 2018. The report concluded that:

“Here’s where age and experience would seem to pay dividends with only 26% of over 55s going over budget compared to 59% of millennial homeowners.”

On the face of it, this statistic appears to play into the ‘frivolous millennial’ narrative. Is this another suggestion that millennials are poor at managing their money? After reading this, the idea stuck with me for a few days; would my parents really be on point for how much their renovation was going to cost? Just because they have carried out work in the past doesn’t mean they would be familiar with current rates.

Are-Millennials-Bad-At-Managing-Money

The same report highlights that younger generations are more likely to renovate for practical reasons, with just 22% renovating to keep up with design trends versus 41% of over 55’s. Young families aren’t moving when they outgrow their home – they can’t afford to – which means that the type of projects millennials are carrying out are more complex than an aesthetic overhaul. With that comes more risk and potential for hidden costs.

‘Decorating the nursery’ becomes a highly skilled construction project when it involves extending your one bedroom flat to the side and rear (whilst propping up your neighbour above) and relocating the kitchen and bathroom, all to create an extra bedroom for a new baby.

On top of this, millennials are likely to be completing home improvements with less disposable income or savings than their more mature counterparts, meaning that they are under pressure to achieve more for less.

It is possible that younger homeowners have higher aspirations for the look of their projects, using more expensive materials and finishes. Perhaps inexperience does play a part through false optimism about what can be achieved. It’s a complex picture, not easily unpicked.  

Whatever the reasons, I suspect money management isn’t one of them. As Olivia Rudgard argues in her Guardian article, ‘Stop trashing millennials for not saving enough money – they’d love to, if only they could’, contrary to being bad with money, millennials have to work harder to manage their money in a difficult financial setting. I feel that the same rings true for home renovations.

It’s our experience that millennial homeowners are more willing to educate themselves on what to expect from their renovation projects. We estimate that around 79% of the attendees at our workshops fall into the millennial age group, keen to learn how to manage their projects and budget accordingly.

While there is much speculation around millennial spending habits in the press, when it comes to owning a home it’s clear that younger homeowners have to work much harder to achieve the house that they want. Luckily, if there was a generation able to rise to the challenge, it would appear to be this one. 

Getting Started Course

Take your first step to getting the home you want and go from thinking about renovating to having a clear, actionable plan for your project!

We have created a FREE Renovation Budget Guide that unpacks all the figures of a project – from building costs and professional fees to those extra expenses that no-one tells you about. This will put your construction budget in the context of the whole project’s costs and make sure you’re considering all those added extras from the outset.

How much will my extension cost in 2024?

It’s the all-important question for home renovators: how much is my extension really going to cost? Read on to find out!

Read More →
Natural-Plaster-Space-A-FR

Natural Plaster – and why we can’t get enough

Want a material that is beautiful, and works hard for you? Look no further than Natural Plaster. We explain why we can’t get enough of it!

Read More →
New-DIY-Front

The New DIY: Online Renovation Courses

More homeowners are turning to online renovation courses as a way to save costs on their renovations. Take a look at our top picks!

Read More →

Where NOT to scrimp on your renovation

Sometimes it’s tempting to cut corners and save a few pounds but it’s likely you’ll regret it in the long term. We share our top tips of where it doesn’t pay to scrimp in your dream home.

Read More →
Open-House-Festival-Front-Cover

Open House Festival: 8th – 21st of September

For those who have decided THIS is the year that they’re going to bite the bullet and renovate, Open House London is a chance to go and see some projects up close and personal. Here’s our list of recommended projects to go visit.

Read More →

Why do we still not have a national retrofit strategy?

We talk to Paul Testa of HEM Architecture about why we need a national retrofit strategy and why it needs to happen now.

Read More →
Front

How to prepare your house for builders: 10 things you must do

When getting ready to receive contractors into your home it’s important to prepare your property. Get started with these 10 must do tasks!

Read More →
House-Buying-Checklist-Front

Our 10 top tips to buying a house

Buying a house is potentially the biggest financial commitment you will ever make, so take the time to prep with our tips!

Read More →
Dont-Move-Improve-Front

Don’t move, Improve! 2022 Shortlist

Check out the 15 incredible London renovation projects shortlisted for this year’s Don’t Move, Improve! Awards and get inspired!

Read More →

Viewing a property: The ultimate checklist

You’ve done your research! But when you’re in the actual property, remember to consider the following things…

Read More →

How much will my extension cost?

When it comes to home-renovating this is the most common question we get asked. So let’s get right to it, how do you work out the REAL cost? Read on to find out!

Read More →
Trade-Shows-PoulsomMiddlehurst_Amhurst_External-Door

How to make the most of a Trade Show

Returning to thoughts of renovating your home? Then jumpstart your project by attending a trade show. But first make sure you read our top tips on how to make the most of your visit!

Read More →

Top tips for renovating from industry experts

We asked a range of architects and experts working in the residential sector to give us their top tip for homeowners who want to renovate.

Read More →

Worried about increasing construction prices?

Everyone is concerned about increasing construction costs. We talk to BuildPartner about what measures home renovators can take to reduce risks for their projects.

Read More →

Your handy guide to assessing builders

Linden from Weaver shares his a handy guide to assessing builders. So before a spade is in the ground, it’s worth taking a moment to prepare.

Read More →
Little-Bishop-Front

Product spotlight: Little Bishop Hook

A neat solution for pendant lighting; we take a look at the clean design and appealing simplicity of the Little Bishop Pendant Hook

Read More →

The ‘Iron Triangle’ you should embrace

It may sound daunting, but knowing about the ‘Iron Triangle’ in advance can help you plan your project and set realistic expectations.

Read More →

Making the most of your outdoor space

If you’re living in London, then chances are you’re severely lacking in one department: outdoor space. But even if you only have a small patch to play with, this space can do so much for you with a bit of care and forward planning.

Read More →
Ultimate-Guide-To-Extractor-Fans-Front-Cover

Your ultimate guide to extractor fans

Our complete guide answers all your extractor fan questions (even those you didn’t know you had!)

Read More →
EJ-Ryder-Interview-Front

EJ Ryder and the world of joinery

Edwin J Ryder and his team specialise in bold, creative design and impeccable workmanship in their joinery and interior finishes. We spoke with Edwin to find out how they work with clients on their property renovations.

Read More →

Coming soon . . .

Our membership is launching at the start of June.  Sign up to get notified when it goes live! 

Sign up for

HomeNotes news

Get monthly renovation articles, advice, news and offers to your inbox!