Millennials invest in travel over homeownership as priorities shift

A new study from share trading platform, moomoo, reveals almost half (48%) of Aussies ages 28 to 42 prioritise leisure spending above saving for a home deposit. 

In fact, the new 2024 Mozo Savings Report uncovered close to half of Aussies are currently saving up for a holiday (42%), compared to just 13% saving for a home deposit. 

The median home deposit in Australia is about $168,422 according to CoreLogic, which is hardly an easy amount to save during a cost of living crisis. 

The online share trading platform says that rather than setting their sights on homeownership, 30-something-year-olds have shifted their focus towards more tangible goals, often taking the shape of a well-earned break.

According to moomoo, a three-week trip to Europe costs about $8,000 when you tally up flights, accommodation, travel insurance, and dining out. That’s roughly $160,000 more achievable than a deposit on the median home.

But not everyone has a spare $8k to throw in a suitcase. 

Australians turn to shares to grow their wealth

As savings become harder to find, some Australians have turned to investing in shares to grow their wealth – even turning to overseas markets, like the US.

Pearler co-founder, Nick Nocolaides, recently told the Sydney Morning Herald that the investing app had seen a surge in Australians using exchange-traded funds (ETFs) to invest in US shares. 

According to Nicolaides, the US share market has been a beacon of opportunity for Aussie investors, as the Nasdaq Composite gained 107%, compared to 80% for the S&P500, and 28% for the ASX200. 

The push, mainly coming from young people, could mean US and global shares make up a combined 70% of Aussie Gen Z and Millennial portfolios, according to Nicolaides. This, he says, would be the inverse of the typical portfolio of an older Australian investor. 

Moomoo Market Strategist, Jessica Amir, shares a simple example of how consistent investing habits can help give you a solid financial foundation to meet your short-term goals. 

“If you simply invested $500 per month into the S&P500 over the last three years via a popular ETF such as SPDR S&P500 ETF (SPY) or the iShares S&P500 ETF (IVV), then you would now have $21,538,” Amir said.

Investing larger amounts, or investing more frequently, could also help that number to grow dramatically, depending on the market.

Emma Lovell, a 36-year-old small business owner from the Gold Coast, says travel is an investment she’ll never regret and wishes young people knew that investing early and often can pay off in a big way. 

“Having money locked away in a mortgage, for example, isn’t helping me. Having money to invest in shares, or my business, or holidays is important to me these days,” Lovell said.

If you like the sound of investing to grow your wealth, but aren’t sure where to start, read our share trading for beginners guide to get an overview of what it involves. If you’re looking to compare share trading platforms, a good place to start your search is with the best share trading platforms in 2024. 

Otherwise, check out some of the featured online brokers below.