Younger generations 'need educating about financial security'

It is vital that young Aussies are educated about finances and the benefits of taking out home loans so they can own their own property, it has been claimed.

Lisa Montgomery, chief executive officer of Resi Mortgage Corporation, told National Features that older generations could suffer if youngsters do not understand the importance of securing their own financial future.

Indeed, she suggested that the parents of Generation Z youngsters are "holding the cards" at the moment.

Earlier this year, a survey conducted by RAMS Home Loans revealed that more than seven out of ten people under the age of 30 who had mortgages had never rented a property.

"If their children don't create their own financial security through strategies such as property ownership, this may in turn affect the retirement plans of parents," Ms Montgomery stated.

Without proper attention being paid to the situation, there could be "an unwelcome domino effect", she continued.

This comes after Peter Jones, chief economist of the Master Builders Association, described the recent home loans figures as "encouraging".

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