Aussie spending habits shift as millennials take over

Results are out for the 2021 Census and Millennials now make up 21.5% of the Aussie population, set to overtake the similar proportion of Baby Boomers. Long teased for their penchant for avocado toast and ‘killing’ industries, millennials are now aged 25-39 and how they spend their money is no laughing matter.
Whether you’re a millennial yourself or not, 21.5% is nothing to sniff at. At prime working age, millennials hold tremendous power over the market as both providers and consumers.
How are millennials spending money?
Millennial spending and saving habits are key to understanding shifts in the market, with Macquarie analysts anticipating that by 2030, two of every three dollars earned will be by this subset of the population.
Growing up with the internet has earned millennials a sense of digital literacy. This has moved far more of their spending online, and at their fingertips with mobile phone apps: 37% less likely to dabble with credit cards than Gen X or Baby Boomers, according to a report for Afterpay by research firm AlphaBeta. Instead, they are the primary audience on BNPL platforms.
Explored in the same study is exactly where that Millennial money is going. Priorities have shifted - they’re spending less money on alcohol than older generations (by 16%) and have obliterated cigarette spend (spending 71% less than older Aussies). New vices look a little different, the millennial love for travel back in full flight post COVID-19.
Where are they spending more? The everyday necessities - public transport spend is 24% higher and private health insurance is costing millennials 23% more than their elders. Instead of spending on big ticket items like TVs, they’re streaming devotees. They’re also spending based on belief and ethics, according to an Edelman study, with millennials sitting at the top of all groups shopping (and banking!) in line with their morals.

How are millennials saving money?
A Commonwealth Bank report shows that there’s a big divide in where 25-39 year olds put away their money. While a third regularly added to a savings account, 14% were living paycheck to paycheck. Looking at the sky-high cost of living, this isn’t surprising.
The same study shows millennials aren’t inclined towards a savings plan, despite the idea of buying a house being a goalpost for ‘adult’ achievement - with less than 28% of those surveyed actually having kicked that particular goal.
Those who are saving have shifting goals. While 18% of those surveyed were focused on their long-term savings goals, 20% were thinking short-term - dreaming of holidays and experiences, or just adding to the rainy day fund.
Along with moving away from credit cards and having a strong preference for using their own money, a CommBank study found that property was far and away the top choice for investment. 86% of those surveyed wanted to have more open conversations about investing their money - in property, superannuation, and the stock market.
What does the future look like for millennials?
As the Baby Boomer population continues to decline, millennials are set to continue to take over. Though the world might look a little different, possibilities remain open and the market is constantly changing.
With strong budgets to account for those rainy day spending needs, sensible savings (a plan or otherwise!) and investments, and armed with digital literacy, Millennials are set to continue as a powerful force in the economy.
To find a space for your savings that suits you, explore some of our Mozo Expert’s Choice Award winners for Best Savings Accounts.
High interest savings accounts - last updated 4 December 2023
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Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Mozo experts choice awards won:
- No Strings Savings - 2023
Savings Account
5.50% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.50% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Reward Saver
5.25% p.a. (for $0 to $100,000)
0.30% p.a.(for $0 and over)
Yes up to $250,000
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
CompareCompareReward Saver
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Grow your balance each month and must have linked Bendigo Everyday or Student Account to be eligible.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
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High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and saving account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the ubank High Interest Save Account
^See information about the Mozo Experts Choice Savings Account Awards
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