Figures from Nationwide show that 34% of younger workers aged between 18 and 34 are saving for a deposit to allow them to move home or take their first steps onto the property ladder.
The survey of 1,316 Britons also found 31% of young people save money in case of a change in circumstances, such as losing their job. A further 16% save with the aim of paying off their debts.
However the figures suggest that 95% of those in that age bracket do not put cash aside for their old age.
Richard Marriott, Nationwide's head of savings, said: "Encouraging young people to adopt a savings habit early on is vital. Just putting aside a small amount on a regular basis can make a huge difference.”
Christina Gough, Mortgage Adviser at The Mortgage & Insurance Bureau said: “This report is encouraging as many have been falsely reporting the demise of the first time buyer.
Whilst it is undoubtedly difficult for young people to get onto the property ladder due to tight lending criteria, it is not impossible and it is encouraging to see large numbers of young people saving to achieve this goal.”
