Fretting over finances
HAVING little financial guidance from their parents and suffering sleepless nights worrying about money is familiar to Generation Y.
About 61 per cent of Gen Y (aged 18-30) say they have never been taught how to save and 62 per cent admit to not sleeping comfortably at night as they mull over financial concerns, new research from REST Industry Super shows.
But when it comes to stashing a savings buffer, four out of five say they do put money away in case of an emergency.
REST Industry chief executive Damian Hill says Gen Y are trying to stand on their own two feet and manage their money independently without asking for some assistance from their parents.
‘‘ They are out there trying to be independent from their parents and the reality of paying bills week in, week out has started to hit home,’’ he says.
‘‘ Financial concerns are real for them. Many of them recognise that now and are at least trying to put shorter-term savings in place.
‘‘ The research shows they haven’t got bad savings habits for short-term savings but they still haven’t got the message about longer-term savings.’’
REST’s survey quizzed 1000 Gen Ys and found 66 per cent had a regular savings plan in place and put money away from each pay.
Alana Peake, 24, works in retail, and says she does save money but is a bit relaxed about how frequently she puts money away.
‘‘ I save money when I want to go away and I’m sort of saving for a house deposit but then I forget about it,’’ she says. ‘‘ I just transfer money into my mum’s account so don’t spend it.’’
Stylist Fabiola Escalante, 24, says when she was living away from her parents she had to adhere a strict budget.
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‘‘ I’m at home now, but when I was living out of home I always budgeted each week, I always had to save to be able to do things,’’ she says.
‘‘ If I’m saving, I have to have a goal like travelling overseas.’’
Savingsguide.com.au’s Alex Wilson says Gen Y are often unfairly criticised about their habits around money.
‘‘ They consistently don’t get enough credit for how involved they are with their finances,’’ he says.
‘‘ The fact that they are sleepless and restless shows they do care.’’
Wilson says Gen Y often experience the ‘‘ teething problems’’ associated with managing money, especially around using credit cards and saving for big-ticket purchases.