According to a recent survey, more than 60% of Australian millennials do not have plans for future savings, and one-third say they save only occasionally.
Combank survey In April, we surveyed 1,002 Australians between the ages of 24 and 39 to investigate the personal financial attitudes and habits of millennials.
We found that only two in five had regular savings plans and one in ten still lived on a salary.
Kate Klaus, Executive General Manager of Everyday Banking at CBA, understands the importance of saving Australian millennials, but feels they need more tools and strategies. Stated.
“We recognize that many young people in Australia want more control over their spending so they can focus on their long-term goals, whether it’s saving for a rainy day or buying a home.” Said Mr. Claus.
Talking about the findings, ME Bank Money Expert Matthew Read Said Saving.com.au states that external factors can make it difficult for young people to save.
“Millennials can have difficulty budgeting due to several factors,” he said. “Living expenses, income declining at the beginning of a career, and there may be consumer pressure that other generations have never experienced.” But he also said that many millennials can help themselves. I also mentioned that you may be skipping the simple steps you can take.
“According to ME’s latest household financial comfort report, 59% of households are not consistently on budget and only 38% have details about their monthly spending, which is a reality. It’s the information that forms the basis of a typical budget, “he said.
But he said a ME Bank study shows that millennials have something that can help them. They were very willing to discuss how to develop financial security.
According to a Commbank survey, about half of the people surveyed develop better ways to manage and save money, including strategies to gain a financial advantage (54%) and spending and savings habits (53%). It turns out that I want to discuss how to do it.
Buy Now Pay Later
One of the issues that seems to be negatively impacting millennials is the growing popularity of “Postpaid Now (BNPL)” services.
BNPL services such as AfterPay and Zip Pay allow consumers to purchase and receive goods and services immediately and repay them in installments to their BNPL providers. The provider does not charge interest, but charges a fee if the repayment is delayed or delayed.
According to a report by the Australian Securities and Investment Commission (ASIC) in November 2020 (pdf), The number of BNPL transactions for the 2018-19 fiscal year increased by 90% compared to the previous time.
According to an ASIC survey, one in five users of the BNPL service are delinquent in repayment, 40% of whom are millennials.
The report also states that in the 12 months to November 2020, 20% of the consumers surveyed used additional loans to meet BNPL payments on time. Half were 18-29 years old.
In addition, one in five said they had missed other invoices to meet BNPL payments on time, such as household invoices and credit card repayments. Half of these consumers were between the ages of 18 and 29.
“Our review emphasizes that the arrangement of paying for purchases now, while paying for later, is accepted as a way to make purchases more affordable.