Lack of financial literacy among regrets for Millenials

A staggering 96 per cent of Millennials wished they had done this differently.

The latest ‘No Place Like Home’ report from Great Southern Bank has revealed what the vast majority of Aussie Millennials are kicking themselves about. The study looks into “the financial literacy well being of Australians”, with Gen Z and millennials rating their financial knowledge as far less than that of Baby Boomers. According to the report:

- Less than one-quarter of Gen Z and Millennials have a current financial plan prepared by a qualified expert.

- Gen Z and Millennials overwhelmingly relied on family (43 per cent and 38 per cent respectively) and friends (31 per cent and 29 per cent) for financial advice over professionals during the past year.

- Fewer than one in five had consulted qualified professionals like a financial adviser, accountant, mortgage broker or bank in the past year.

It found that 96 per cent of millennials surveyed wished they had done things differently when it comes to their finances, including:

– 72 per cent wished they had made more regular contributions to savings over time

– 69 per cent wished they had set up savings habits when they were still at school

– 66 per cent wished they hadn’t spent so much on entertainment.

– 59 per cent wished they’d researched more before purchasing an investment property

– 41 per cent wished they had obtained independent financial advice before major decisions.

Megan Keleher, Chief Customer Officer at Great Southern Bank, said Aussies needed to be creative when it came to saving money.

“The second phase of our No Place Like Home report shows that Australians are seeking out ways to be clever with their money in this challenging economic environment,” she said.

“Turning to family and friends may be a great place to start in increasing your financial knowledge and it doesn’t need to end there.

“Jumping on a bank’s website and using a budget planning calculator or a savings tool could be an easy next step to becoming more financially savvy, before potentially talking to your bank, a mortgage broker or another qualified expert.

“The more advice you seek out, the more equipped you’ll feel to make the big financial decisions in life – whether it is starting your savings journey, taking out a car loan or buying a home.”

Other findings from the report included the high rate of FOMO, or fear of missing out, among prospective homebuyers.

“The research also shows younger generations are often seeing home ownership as a race to the finish line,” the report read.

“In fact, 30 per cent of Millennials admitted to buying a property due to a; fear of missing out’”.

“They are also increasingly reliant on family to buy a home, with Millennials three times more likely than Baby Boomers to have called on parents for financial support.”