Young Aussies 'were unaffected by the financial meltdown'

Tuesday 09 March 2010

Article by Mozo

The global financial crisis did not have a huge impact on the spending habits of "Generation Y", it has been found.

According to the Commonwealth Bank’s Viewpoint Report, spending among 18-24 year-old Australians increased by 6.2 per cent in 2009 despite earnings growing only 2.5 per cent, the Daily Telegraph reported.

This contrasts with the more pessimistic 25 to 34-year-olds. The study found that spending among this group increased by only two per cent, despite the fact that their earnings grew by 4.9 per cent.

Michael Blythe, the Commonwealth Bank’s chief economist, suggested that Gen Y Aussies had been more confident in their spending because they lacked experience of a full-blown recession.

In contrast, older Aussies were more likely to save for property spending or other expenses.

Gen Y Australians may be more likely to compare debit cards and credit cards in search of the best deals.

Australian credit card holders are set to face higher repayment costs as the major banks raise interest rates in line with the Reserve Bank’s hike earlier this month.

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