$8000 saved in eight months for dream overseas holiday
ELENA Stavrou wanted to travel, like many Millennials, but saw it as a dream rather than a goal as her bills constantly stretched her finances.
It was only when the 32year-old signed up for a short financial education course that she learnt the skills to save successfully.
Armed with new knowledge and a plan to cut out small expenses, she saved more than $8000 in eight months to pay for a dream European holiday.
“You hear things like ‘don’t have credit card debt’ but no one really explains why it’s bad,” Ms Stavrou said.
Learning to prioritise spending and review expenses was important.
“I found I had things I didn’t need, like two gym memberships which were costing me $90 a month,” she said. “I decided I could go for walks or runs, so I got rid of both of them.
“My biggest expense was food. I was spending a lot of money on food, takeaways, coffee here and there. One month, I spent almost $500 on eating out!”
Ms Stavrou said many Traveller Elena Stavrou
‘I was spending a lot of money on food, takeaways, coffee here and there. One month, I spent almost $500 on eating out!’’
people in their 20s and 30s had never been taught how to set up a savings system.
“So many people just have one transaction account and no separate savings account to set money aside,” she said.
Paridhi Jain is the founder of SkilledSmart, which ran the six-week part-time course Ms Stavrou undertook, and believes the idea that all Millennials are financially irresponsible is wrong.
“Once they understand money, how it works and how to manage it, we often see a sense of excitement about what they can achieve,” she said. Ms Jain said there was a big difference between having money and building wealth.
“Many people assume that someone on a big income, big house, great car, is rich, but that person could be living pay cheque to pay cheque,” she said. A key lesson is paying yourself first, sending automatic savings to a separate bank account.
XY Adviser co-founder Clayton Daniel said Millennials wanted to feel connected to something before buying it.
“Education is hugely important, but first Millennials need to be engaged,” he said.