An “alarming number” of young Australians are spending sleepless nights worrying about their financial position, and many refuse to ask for advice, a new report suggests. Yet, many young people are going online for answers.
A survey conducted by superannuation fund REST has revealed that many 18 to 30 year olds are worried about money and may not be properly educated about managing their finances, both in the short term and for longer term areas such as saving for a property.
Damien Hill, chief executive of REST, said of those currently receiving financial advice, 72 percent said they found useful. But, he says, many Generation Y Australians refuse to seek professional financial advice or ask family to help them budget or save.
“Considering such a high percentage of the young people we surveyed have never received any financial advice, it’s not surprising that they have ongoing financial worries,” he said. “We don’t want to see this generation overwhelmed by financial stress throughout the rest of their working lives, and through retirement.”
One in two respondents said they would not talk to a financial planner, and 72 percent said they would not ask family for budgeting, saving or investment advice.
REST also found that Gen Ys working full time were more likely to save for a major event such as a holiday or wedding, rather than a house.
Savvier than you think
Generation Y might have earned a reputation as being frivolous with their money and unwilling to ask for help managing it, but a separate study suggests they are savvier than you might think.
Latest research by RateCity shows that Generation Y is more likely to go online for information about financial products than any other generational group.
They are the most likely to search, compare and apply for financial products, and are highly active online when it comes to comparing and applying for insurance products. They also have fewer credit cards than any generational group.
Alex Parsons, chief executive of RateCity, said Gen Y is the most active group of online banking customers.
“They want to know more about financial products, how their products compare and are willing to switch financial institutions if they find a better value deal,” he said.
About 22 percent of the site’s 18 to 34-year old visitors were interested in personal loans, 16 percent intended to apply for a home loan in the next year and 9 percent wanted to secure a car loan within six months. Many were also actively looking at ways to invest their money and plan for the future.