Financial concerns keep two thirds of Gen Y awake at night.

Mozo

Friday 24 May 2013

Despite being good at topping up their savings accounts, a new survey by REST Industry Super has found that nearly two thirds of Gen Y have sleepless nights worrying over their finances.

Man sleepless over savings account

66 percent of the 1000 survey respondents said they regularly or always put a portion of their paycheck into a savings account. However, it seems that Gen Y are concerned that they are not managing their finances properly with 61 percent saying they were never taught to save and are now concerned for their short term and long term goals such as accumulating a deposit for a house or planning for retirement.

"Learning how to manage your money while you're young is critical in securing a strong future. We don't want to see this generation overwhelmed by financial stress throughout the rest of their working lives, and through to retirement," said REST CEO Damian Hill.

Over 70 percent of Gen Y would not go to their for family for budgeting, savings or investment advice, while 35 percent would not discuss what they earn with their friends.

Also of concern was those working in a full time job were more likely to save for a big holiday or wedding than for the deposit on a house.

While being uneducated on their personal finances is a cause of stress, over half of Gen Y were skeptical about talking to a financial advisor and 1 in 10 completely distrusted them.

"We have to reassess the role family, government and financial instituions, including superannuation funds, in educating young people about money and helping them make the most of their short-term and long-term financial goals," said Mr Hill.

Australians seeking to improve their personal finances should asses their banking products and insure that their goals are not being hampered by the likes of a poor credit card or savings account. Find the best savings account interest rates and more here.

Have a question about savings accounts? Ask us.

Compare today's top savings accounts

Back to top