Young Aussies saving for holidays over home
With many young Australians feeling squeezed out of the property market, it comes at no surprise that a recent study by Suncorp Bank has shown more Generation Ys are saving for a holiday at 32%, over saving for a home at 24%.
The Suncorp Bank Australians’ Saving Habits Report found that Gen Yers, aged 25 to 34 years old are now Australia’s best savers, over Generation X and Baby Boomers.
The report indicated this was because young people are in the “saving sweet spot” of life, which means they have a good earning potential but have less financial commitment.
Another factor contributing to Gen Yers ability to save more is the fact that people in this age bracket are increasingly staying at home for longer, with one in four young adults (20 to 34 years old) still living at home.
When deciding how to invest, Suncorp Bank Regional Manager, Monique Reynolds, said it appeared young Australians increasingly favour intangible experiences over tangible assets.
“On average, Australians aged 25 to 34 are saving $533 per month (12.7% of their personal income). This is $100 more than the national average (11.5% or $427).”
“While property investment appears to be a big motivation amongst this group compared to other generations, it is interesting to see their motivation appears to be heavily focused on a holiday and other social experiences, rather than the traditional Australian dream.”
When it came to comparing genders, men were more likely to be saving for an investment property while women were more likely to be saving for holidays and travel, homewares and house renovations.