Having a money goal is a great indicator of a young adult’s skill with money – but not having a plan can mean many fail to achieve their hopes. That’s the big difference between “Money Planners” and “Money Dreamers”, as found in new research from the Money Advice Service. Though more than two-thirds (69%) of young adults have financial goals, only half have a plan in place – making them “Planners” according to the report produced with the University of Edinburgh Business School. The half without a plan fit into the “Dreamers” type. The rest, those with no goals and no plans, are “Drifters”. Short term goals When young adults do make a plan it tends to be short-term, focusing on something they need now such as a holiday or car. The idea that it’s save to spend it is much stronger than saving for a rainy day or retirement. Just over half (52%) of “Planners” know it’s important to keep track of income and expenditure, and a similar number (45%) shop around for the best deal. More than half of the “Dreamers” (54%) get anxious about their finances, and only one in five (20%) save for a rainy day. Low confidence for Dreamers and Drifters The report discovered that young adults have the lowest confidence with money of any age group, with just 45% happy to manage money compared to 58% of all adults. Confidence increased though with experience, not just age. As young adults head to university, leave home to rent their own place or get their own job, they became more independent, and with it more confident. But it’s the “Dreamers” and “Drifters” who are more likely to be dependent on their parents, delaying their own experiences with money and the need to make important financial decisions. In turn their confidence with money doesn’t increase, they’re three times more likely to have problem debt. Worried about debt? Don’t ignore it. Find free debt advice near you with our locator tool Ways to help plan for your financial goal First, you need to set a goal. Even something short-term, like a holiday or a deposit for a flat, can help you get into a planning mind set. The simplest way to achieve a goal is to think about when you want to achieve it. Work back from there to see how much you’d need to save each month. To see where you could find that money, try a budget planner. The Money Advice Service has an easy to use online tool which will help you see where your money goes and where you might be able to find some savings.