Dink, Ski, Yolo … not characters out of a children’s cartoon, or things you’ll find in the supermarket dairy aisle, but three of the acronyms given to the tribes of people who share similar financial characteristics.
Dinks, Skis and Yolos are able to enjoy a little more disposable income — or at least not to worry too much about spending it — while Henrys and Jams will be feeling the pressure of high mortgage costs and living expenses.
Deciding which group you’re in could help you to improve your finances in 2026. Read our guide to find out which is your tribe and how the experts think you should plan your money.
This couple, in their late twenties to early forties, are prioritising their careers over starting a family. They work full time and live in a city or suburb. While they have more disposable income than their friends who have children, they must balance their spending on socialising and travel with the costs of rent, student loan repayments and other debt.
How can they improve their financial situation? Brian Byrnes from the investing app Moneybox said Dinks should arrange a financial date night to sit down and discuss a budget, review spending and talk about goals. “Conversations about finances can carry a lot of emotional weight and are a common source of strain in relationships. Creating a calm, positive environment can make these discussions more constructive,” Byrnes said.
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Dinks should ensure that lifestyle creep, where their spending increases with earnings, does not derail their plans. Instead, they should increase their pension contributions and savings whenever they get a pay rise. Les Cameron from the wealth manager M&G recommends that they approach their finances as a team. Owning assets jointly — savings, investments and rental properties — means you can make use of two sets of tax allowances, including the £3,000 annual capital gains tax allowance, the personal savings allowance (£1,000 of interest tax-free for basic-rate taxpayers and £500 for higher-rate payers) and £500 dividend allowance.
“It’s a simple move for a big impact, reducing your overall tax bill,” Cameron said.
Henry: high earner, not rich yet
These young professionals earn more than £97,900, putting them in the top 5 per cent of earners — a group that pays almost half of all income tax, said Sarah Coles from the wealth manager Hargreaves Lansdown. “That’s why it is so important for Henrys to do what they can to keep their income tax bill down.”
Ask if your employer has a salary sacrifice scheme, where you can give up a portion of salary in exchange for certain benefits, including pension contributions. The salary is “sacrificed” before tax and national insurance is calculated, although from April 2029 there will be a £2,000 cap on the amount of salary that can be sacrificed while still saving on national insurance.
It’s a vital tool for anyone in the tax trap you fall into if you earn between £100,000 and £125,140. At this point workers start to lose their personal income allowance (the amount that can be earned each year tax-free), and face a marginal tax rate of 60 per cent.
Henrys expecting a work bonus should plan for it. “Those who have already paid off high-interest debt and established an emergency fund could use the lump sum to start investing,” Byrnes said. To do this they should make use of their Isa allowance. You can save or invest £20,000 a year into these accounts and all gains are tax-free.
Henrys should keep an eye on their budget. Households headed by the top fifth of earners spend £3,533 a month on essentials, compared with the average of £2,097, according to Hargreaves Lansdown. Comb bank statements to see where savings can be made, such as cancelling unused subscriptions, switching utility suppliers and shopping around for insurance.
Jam: just about managing
Hit hard by the cost of living crisis, these families are grappling with higher costs in just about every aspect of life, from mortgages, childcare and school fees to the cost of groceries and household bills. Their wages have not kept up but they earn too much to qualify for benefits or additional help.
A survey of 10,000 people by Yorkshire Building Society in October found that 19 per cent would not have enough money to last more than a month without an income, and 12 per cent said they had no cash savings at all.
This cohort probably has a firm grip on their budget already and there are few cutbacks left to make, Coles said. “The less people have in assets and income, the more likely they are to be very organised when it comes to managing their money.”
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Clearing debt is a priority for Jams before they can start saving. Shifting a balance to a 0 per cent credit card can provide breathing space to clear the debt without racking up interest charges.
The average two-year mortgage rate for someone with a 10 per cent deposit is 4.5 per cent, down 0.97 per cent from a year ago, according to the property website Rightmove. Anyone coming to the end of their deal should switch and you can usually lock in a new rate up to six months in advance.
Ski: spending the kids’ inheritance
While many retired people are focused on passing wealth to younger relatives, the Skis are enjoying their hard-earned savings. They’re in their sixties and seventies and mortgage-free, their children are self-sufficient, and they want a high-quality retirement full of experiences.
This group must balance enjoying life while they are fit and healthy with keeping aside enough for potential future care costs. Byrnes said: “Even if leaving a big inheritance isn’t your goal, having some form of plan will ensure that you can enjoy yourself now while also protecting your own future.”
This is a prime time to see a financial adviser, who can determine how you can best draw on your savings so the money doesn’t run out. Ensure you have a valid, up-to-date will. Coles said: “If you are taking this approach, it is important to be clear with any family members, so they don’t expect a bigger inheritance than you are set to leave.”
Consider making financial gifts during your lifetime. You can give away £3,000 a year without it being liable for inheritance tax. Under the seven-year rule, you can give away more as long as you live for at least seven years after making the gift.
Fire: financial independence, retire early
Fire folk save hard while they are young — typically 50 per cent or more of income — with a view to retiring early, often in their forties. Budgeting and a low-cost lifestyle are their top priorities for these people in their twenties and thirties if they want to achieve their goals. Investing is key to growing the money they save. They may have a buy-to-let property, which can grow in value and provide a regular income.
Coles said one danger was in overestimating how much your money will grow: “Be realistic about how much you will need to live on in the future. Some of the calculations used by Fire savers assume some very punchy investment returns.”
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Fire savers should review their investments and consider goals, risk appetite and how long they plan to invest for. Those invested in the US or technology stocks have enjoyed fantastic returns, but this might have left their portfolio out of kilter and too exposed to these areas. Rebalancing involves taking profits from your best performers and reinvesting them in areas that have done less well to bring your portfolio back into line.
“It is also worth considering why you are so keen not to work, and whether there are other career options you might be in slightly less of a rush to leave,” Coles said.
Yolo: you only live once
Yolos are in their twenties and prioritise enjoyment now over long-term planning. They think nothing of daily coffees, regular holidays and concerts, and splurges on fashion and tech. They often use credit cards or buy now, pay later to fund their lifestyle.
This leaves them vulnerable to any financial shocks. Hargreaves Lansdown found that Yolos have on average just £76 left at the end of the month, compared with £176 for those who consider their future finances. Coles said: “You only live once is one of the worst pieces of financial advice you can get.”
The priority for this group is building a financial safety net, Byrnes said. “Have enough for three to six months of essential outgoings in an easy-access savings account, so it’s available when you need it.”
Round-ups can help turn a spending habit into a savings routine. Available through many banking apps, these round up your transactions to the nearest pound — so a £1.86 purchase gets rounded up to £2, with the 14p difference put into a savings account.
Those with an eye on the longer term could start investing small amounts. A Lifetime Isa can be opened by those aged 18 to 39. You can save or invest £4,000 a year and get a 25 per cent government bonus. If you use the money for anything other than to buy a first home or after the age of 60, however, you will pay a 25 per cent penalty that wipes out the bonus, and some of your interest.
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Investing £50 a month, which gets topped up to £62.50 with the bonus, could grow to £10,356 after ten years, assuming 6 per cent annual growth.
‘I’m a Ski — the kids are grown up and we’re enjoying our freedom’
This year, Robin Hall, 58, and his wife Stephanie, 50, have travelled to Malaysia, Greece, Mallorca and New York, as well as Devon, Cornwall and London. Next month they will take a three-week trip to Thailand and Malaysia to celebrate their 30th wedding anniversary.
Stephanie and Robin Hall have travelled to New York and three other destinations this year
Hall, 58, left his job as a global head of sales three years ago and used his pension tax-free lump sum to clear the mortgage on their home in Staffordshire. He draws a regular income from his self-invested personal pension with the investment platform AJ Bell.
While the couple are happy to help their sons Matthew, 29, and William, 26, financially — they contributed about £10,000 to a flat deposit for Matthew — a large-scale transfer of wealth is not a priority.
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“We are still quite young, we could have 30 years or so in retirement, so it doesn’t seem like the right time to start planning for inheritance,” said Hall, who enjoys tennis, table tennis and cycling in his spare time and has won election as a county councillor.
“When you stop working, if the kids are grown up and you are fit and healthy you suddenly have a lot more freedom and time.”