Mid-20s 'the best time to save'
While younger Australians will never have witnessed the kind of downturn that now looks imminent, generation Y can protect itself from financial ruin by saving as little as $20 a week.
Such is the claim of money guru Scott Francis, who has told the Courier Mail that ploughing this money into savings accounts or investment portfolios can bring big rewards.
“If someone saves $20 a week through their 20s and invests in some sort of balanced portfolio, they can expect to have somewhere around $30,000 by the time they turn 30,” he said.
While many 20-somethings may be struggling to stay within their credit card limits, Francis urged them to remember that time was on their side and that a bit of prudence now would bring dividends later in life.
According to the recently published National Survey of Young Australians from Mission Australia, overspending on credit cards and loans and a failure to put cash aside in savings accounts have left generation Y ill-equipped to deal with an economic downturn.