Millennials: more money savvy but apprehensive about financial future

author-avatar By on April 23,2019
Millennials: more money savvy but apprehensive about financial future

Photo by Lukas Rychvalsky from Pexels

Despite being one of the most financially aware generations, millennials are the most worried about their financial future, according to research by Mortgage Choice and Core Data.

The research shows millennials are the most financially savvy generation, with 56% of millennials monitoring their finances on at least a weekly basis – above the national average of 52%.

The research also found that 21% of millennials said they save over 20% of their net income after paying rent and other living expenses, compared to 16% of Australians.

But when asked about their level of confidence that they were on the right track financially, nearly half (45%) said they were not confident, and just under 80% said that they worry about their current financial situation.

“It is normal to feel uncertain about the future when you have your life ahead of you; however, young people have the luxury of time on their side,” said Mortgage Choice chief financial officer, Susan Mitchell.

Interestingly, the rising cost of living (40%) was seen as the greatest driver of this concern, higher than their worries about their job security and health.

For a younger generation that has never experienced high unemployment, this makes sense.

‘DIY’ approach to finances

According to the survey, 39% of millennials would rather manage their own finances and seek reliable information to help support their decision making than seek the help of a financial planner.

The research found that millennials don’t understand the value of professional financial advice because most of them don’t know where to look for it.

When asked what circumstances would drive them to seek financial advice from a financial planner, the most common response from millennials was that they would need to find themselves in a position of financial stress.

Other responses were if they were to suddenly come into a substantial amount of money or generally possess more wealth.

“This is a common misconception. The reality is an experienced financial adviser can help you plan for your future, regardless of your level of wealth, and give you peace of mind that you are on track to meet your goals.”


Latest Articles

author-avatar
Emma joined Savings.com.au as a Finance Journalist in 2019. She is a journalist with more than five years experience across print, broadcast and digital media, with previous stints at Style Magazines, 4ZZZ radio, and as editor of The Real Estate Conversation. She's most passionate about improving the financial literacy of young women and millennials by writing about complex financial topics in a way that's easy for the average Joe (or Jill) to understand. When she's not writing about finance she's watching Greys Anatomy (again).

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A