Gen Z & millennials are the best at managing money says UBank

• Outdoing all other Aussies, 74% of Gen Z  & 62% millennials take an active interest in and manage their own finances, UBank research reveals.

We’ve all heard of the many negative impacts COVID-19 has had on the lives and financial situations of people all over the world. But one silver lining is that more people have begun paying closer attention to their finances and spending.

UBank’s Know Your Numbers survey reveals that buying a property is one of the top two savings goals for the next five years for 44% of Aussie millennials, a figure that’s gone up by 3% since February this year. Of this number, 50% are already saving up for the deposit.

“Despite 45% of the population admitting their finances have been negatively impacted in the last six months, we’re seeing millennials emerge as being quite resilient,” said UBank executive, Philippa Watson.

“They’re taking the opportunity to implement budgeting and saving strategies to keep their financial goals, such as buying a home, on track, with many putting away half their salary each month,” Watson said.

Interestingly, the survey also revealed that a whopping 68% of millennials have a budget in place. This is quite a significant jump when compared to other generations, with 58% of Gen X, 59% of Baby Boomers, and just 55% of Gen Z setting a budget.

UBank’s research strongly indicates that the current COVID-19 climate has been a catalyst for change in Aussie spending habits, finding that an extra 11% of Aussies are using budgeting apps or trackers throughout this period, increasing to 20% of millennials.

“We know there’s a direct correlation between budgeting behaviours and reaching your financial goals, and it’s really impressive that so many young Australians are being intentional around their money,” Watson said.

Budgeting & being savvy with money in tough times:

Regardless of which generation you are in, there’s always room for improvement when it comes to our financial wellbeing. Here are a few tips to staying ahead financially and mentally:

1. Set a budget:

The key to keeping your spending in check is to set a solid budget that factors in all bills, expenses and regular savings contributions, but also leaves room for a little indulgence here and there. It’s important to achieve a sense of balance so you’re less likely to blow your savings on small victories.

Use Mozo’s free budget calculator tool to determine where your money goes and how much you should have leftover, so you can get a better idea of your current financial situation and set a specific budget accordingly.

2. Out of sight, out of mind:

You’ll be far more likely to break your budget if there’s one big lump sum of money just sitting there in your bank account, so dodge the temptation by dividing your money up across multiple accounts.

Stash your savings in a savings account then keep your pay in one bank account and your weekly allowance in another one altogether. Another tip is to set up automated payments to transfer your weekly allowance into your spending account each week.

3. Track your spending

Keep tabs on your spending by downloading a budget and savings app so you can pick up on any major money drainers and stay on track with your budget.

Check out these tips for creating a solid financial plan so you can be prepared for whatever comes your way and ready to tackle and financial curveballs.