Generation Y may appear to have it all – not only are they young with grand aspirations for their budding futures, they are more likely than Gen X and Baby Boomers to claim they are better off financially than last year. This is according to the RaboDirect Financial Health Barometer, which surveyed 2,300 Aussies aged 18-65, and showed that Gen Y were also most likely to say they were saving more than they were in the 12 months prior (33% vs 24% of total respondents), saving on average $943 each month vs $908 of the rest of the population.
And yet, Gen Ys are most likely to say they find dealing with money ‘stressful and overwhelming’ (47% vs 35% of the total respondents).
According to RaboDirect, Gen Y is on the right track in terms of their financial habits; but staying informed about their finances and turning to a professional may help reduce their financial worries further.
Greg McAweeney, Executive General Manager from RaboDirect said: “Young people face challenges that are unique to their generation. Housing has arguably never been more unaffordable, even with historically low interest rates, house price growth is pitted against slowing earnings growth. They have lived through the GFC and the cost of living in Australian capital cities is among the highest in the world. Add to that the pressures of modern life and a want to keep up with the Jones’ and is it any wonder Gen Y are feeling stressed? And yet our research shows that Gen Ys are taking control of their finances and adopting good savings habits from an early age which are important factors for ensuring a comfortable financial future.”
“It’s encouraging to see that Gen Ys are happy to talk to others for financial advice – if you’re finding dealing with your finances stressful, a second opinion can help set you straight and give you some practical steps to take to improve your financial outlook. My only warning would be that relying on friends and family isn’t always the smartest plan. Just as you’d likely trust the diagnosis given by a trained doctor over one from your friend, a trusted financial professional will be able to give you the best advice that is particular to your needs. Why not make 2015 your year for getting your financial house in order? Having even a simple plan can really offer peace of mind – and that goes for every generation.”
Key stats for Gen Y:
Most likely to say they are saving more than last year (33% Gen Y vs 24% total respondents). Also, they are saving more in a typical month (Gen Y saves $943 vs $908 of total respondents)
Most likely to say being financially well off is a ‘number one goal (30% vs 24%)
Almost a quarter (24%) used family, friends or colleagues for financial advice in 2014, compared to 16% of total respondents
In 2013, 61% said they try to stay informed about money and financial matters but this dropped to 56% in 2014
The most frequently impulsive generation and the only generation to report more frequent impulsive purchases than last year (2.3 in 2013 vs 2.8 in 2014). More likely to say clothing most frequent impulsive buy (32% vs 28%)
55% of Gen Y consider being able to visit a hairdresser, beautician, nail salon etc. regularly as essential to their wellbeing
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