'Saving the key' for Generation Y

While Generation Y looked fairly adept at dodging the downturn during 2008 due to their lack of savings or supers, the Advertise has conceded that this year may prove a lot more challenging.

The paper has recognised that with growing unemployment, many younger Aussies could find themselves struggling to get off the ground.

As such, Financial Planning Association SA chapter chair Kerrin Falconer has warned that the most important rule is to spend less than you earn in order to build up vital capital to cover emergencies such as redundancy.

“There is absolutely no way you can get ahead if your bank balance is constantly in the red,” she insisted.

Meanwhile, Eastwoods financial planner Michael Schluter urged young people to plough their spare cash into high-interest savings accounts to build up their coffers.

Figures cited by news.com.au before the onset of the financial crisis showed that Generation Y was continuing to choose to spend rather than save, with many racking up debts on credit cards and personal loans in the process.

As 2009 gets underway, young Aussies may do well to shake off that financial hangover and make a fresh start with a new savings account or term deposit.ADNFCR-1761-ID-18971077-ADNFCR