NSW young people best savers in Australia but short of home deposit, says ING DIRECT
The ING DIRECT Household Financial Wellbeing Index showed NSW Gen Y households aged between 18-34 have an average personal savings of $27,103, compared to the national average of $12,057.
Even with the highest savings in Australia, NSW young people are struggling to enter the booming property market. ING DIRECT’s customer service director John Arnott described NSW young first home buyers as “waiting on the sidelines for a chance to enter the market at a reasonable price.”
While it can be difficult for first home buyers to save up the initial deposit, Mozo advises young Aussies to make a clear budget and savings goal, using an online budget calculator and set up a high interest savings account to see their cash stash grow.
The ING DIRECT July study indicated NSW Gen Y households are now less concerned about “maintaining lifestyle amid rising living costs”, compared to Gen X households and Baby Boomers. However are still focused on boosting financial wellbeing with 57% planning to save more, compared to 41% all NSW households.
“The ongoing plans of the state’s Gen Y households to grow savings at the expense of non-essential expenditure suggest that home ownership remains a key personal goal,” said Arnott.