The summary of triple j’s latest What’s Up in Your World survey* of 11,000 Australians aged 18 to 29 identifies millennials as young, smart and ‘kinda’ broke. So how have attitudes of today shifted from previous generations?
1. The nature of work is changing
Most respondents surveyed were working full time or part time, but one-third also had a side hustle on top of their everyday job suggesting this is an entrepreneurial generation with big aspirations and dreams.
2. Housing affordability is the second biggest pressure
Second to mental health concerns was housing affordability. 27 per cent of people surveyed said housing affordability was the one of the most pressing issues for young people. This was followed by getting a job and climate change. This generation, however, is positive and 79 per cent believe they’ll still manage the ‘Australian dream’ of owning a house one day.
If you’re trying to save for a house you might like to check out the new First Home Saver Super Scheme that allows you to save in your super (while potentially benefiting from tax concessions). You can read more about the FHSSS here.
3. Debit is still an issue
Excluding university debt, 28 per cent had more than $5,000 debt. Over half of people surveyed also had less than $5,000 saved in the bank. It’s not all doom and gloom though research from ING+ suggests that Australian millennials are actively looking to pay less on bank fees and placing importance on being able to pay back their debt as quick as possible.
From 1 July 2019 you’ll have to start paying back your HECS and HELP loans as soon as you start earning $45,800 a year^ – so it’s important you sit down and look at your budget. See MoneySmart's great budget planner here.
Money today can affect your future
While it’s easy to live in the moment and treat yourself now, developing good money habits could set you up for a more secure financial future. And it’s never too late to start, no matter what generation you’re from.
Steps such as being wary of taking on too much debt, developing savings goals and even considering a strategy for your super can all help set you up for success. Here’s a checklist for good money habits below:
- Set a budget and stick to it – even if it means waiting to purchase that latest thing you want
- Set both short-term and long-term financial goals which will motivate you to keep saving
- Create an emergency fund that could support you in the event of job loss, medical emergency or unexpected bill
- Minimise the amount of debt you take on where possible and prioritise paying it off
- Consider finding and consolidating https://www.visionsuper.com.au/super/transfer-my-super your multiple super accounts – it could save you in fees so you have more in super by the time you retire.