Gen Y 'should set aside some income for savings'

Members of Generation Y should set aside a portion of their regular income for long-term savings and budgeting, it has been argued.

A Your Money report by News Limited noted that members of Generation Y – namely Australians in their 20s or early 30s – may be looking to plan for the future by consolidating a career, settling down or buying a home.

Speaking to the column, Club Financial Services general manager Andrew Clouston suggested that by choosing to compare savings accounts and being responsible with earnings, young Aussies will be better positioned to afford major purchases later on.

"Set aside a fixed percentage of your income – say ten or 20 per cent each week and put this into a high-interest account," he said.

"You could be surprised how quickly this could make a great little deposit for a new car, overseas travel or your first property.''
Meanwhile, William Buck senior adviser Janine Williamson claimed that people who get into the habit of automatically deducting some income for the purpose of saving will find that they do not miss it.

This article is brought to you by Mozo – Helping you compare savings accountsADNFCR-1761-ID-800332225-ADNFCR