Gen Y know how to party and save, finds latest Suncorp research
Thursday 31 October 2019
On World Savings Day, it seems only fitting to celebrate the best savers among us, and you might be surprised to learn that Gen Y really excel when it comes to stashing that cash.
According to Suncorp bank’s Best Saver Report, the average Aussie aged between 18 and 34 save approximately 32% of their hard earned money each month. A figure which is considerably higher than the national average of 23%.
“It was interesting to see the top savers in this younger age group were motivated by tangible goals - buying their first home, investment property or shares, which goes against the common assumption that this generation has given up on the great Australian dream of home ownership,” commented Suncorp’s Executive General Manager of Consumer Financing, Chris Fleming.
Yup, it would seem that there really is more to Gen Y than smashed avo on toast and smartphone addictions.
The report even went so far as to describe Australia’s best savers as women aged between 18 and 34 with full time jobs, living in New South Wales, who entertain regularly, have tangible goals, bring lunch to work and share streaming subscription services with a friend.
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Of course, not everyone can fit perfectly into this savings model. Indeed as Fleming suggested, many Aussies in the same age group admitted to impulse purchases and spending a lot of their salary as soon as they get paid.
“Getting in the habit of good money behaviours at an early age, like prioritising needs over wants, being mindful about where we spend our money and keeping track of discretionary spending, can really help us financially for later in life,'' added Fleming.
The report also found that a worrying 25% of Australians are often anxious about their finances, with 11% not saving at all.
To get more savvy with saving, Suncorp Behaviourist Economist, Phil Slade suggested thinking about savings in terms of percentages rather than dollars and cents.
“If we think of our savings as a percentage rather than a number it could trigger a change in behaviour later in life - the 80/20 rule is a great example. With the 80/20 rule if your earning capacity changes, you will continue to contribute the same percentage of your salary to your savings or investment goal,” Slade explained.
Get savvy with your savings this World Savings Day!
Of course, there’s no better time than World Savings Day to think about turning over a new leaf and kicking bad budgeting habits.
So here are some of Mozo’s top tips for stashing your dollars and cents this World Savings Day:
- Create a budget and stick to it! Honestly it’s a must have for any savings plan. Check out our guide on how to create a budget, to see how you can start putting your ducks, or dollars and cents in a row.
- Kick a bad habit. Now this one is easier said than done, but kicking just one bad money habit could really make a difference to your savings stash. Figure out what your No. 1 bad money habit is and see if you can do without.
- Save every dollar and cent. Small change might seem like an inconvenience to your wallet or purse, but it can really add up. So get yourself a good ol’ fashioned piggy bank and start stashing.
- Give yourself savings goals! It helps to know what you’re saving for, whether it be a car or a microwave, having an incentive to put your wallet away could really help.
- Keep your savings in a high interest savings account! For any good savings plan you need an even better savings account. So if you’re struggling to put money away for a rainy day, take a look at other savings accounts to see what else is out there.
Feeling inspired? Why not have a gander of the bonus savings accounts below, to find out if you could be getting a better annual interest rate on your hard earned dollars.