It would be easy to assume that young Australians struggling to get into the property market would also be rubbish at saving money for anything. Popular belief labels them as lazy, self-entitled and debt-ridden, so it might be surprising to learn that they actually outdo savers in Generation X and the Baby Boomers.
A report by Suncorp Bank found that Australians aged 25 – 34 are saving $533 per month on average, which is almost $100 more than the national average of $427 per month.
Attributed to greater earning potential and lower levels of financial commitment, 32% young Australians are more likely to use this advantage to save for a holiday than they are for property, with only 24% opting for the latter.
“While property investment appears to be a big motivation amongst this group compared to other generations, it is interesting to see their motivation appears to be heavily focused on a holiday and other social experiences, rather than the traditional Australian dream,” says Suncorp Bank Regional Manager Monique Reynolds.
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So what are we spending most of our money on? The largest portion goes to food, with those from all generations surveyed spending an average of 17.5% of their personal income on eating.
Ironically, the best savers are those who are more likely to go out to clubs and bars on the weekend, as well use their credit card for most purchases (34% of respondents).
Men are likely to save more of their income each month, putting away an average of 13% vs 10% for women. Men are also more likely to save to invest in property, while women save for travel, homewares and house renovations.
According to the report, Australia’s best saver is “A tertiary educated Generation Y man, who lives in a metropolitan region with no children, values quality over price and brings their lunch to work.” So it’s worth the hassle of that big Sunday cook-up!
We could probably use more help with our money though, with a recent survey of over 1,500 Gen Y consumers by Asteron Life revealing that only 21% are seeing a financial adviser on a regular basis.
So there you have it, turns out we’re better with money than our parents give us credit for.
Just incase you needed more convincing, here’s what you could have bought with the money you haven’t been saving.