Generation Y has excellent saving skills but more debt than ever before, according to new research by REST Industry Super. The research studied the current savings habits, debts, incomes of Gen Y and their current attitudes, beliefs and behaviours in regard to their personal finance.
The REST survey found that contrary to the popular perception of Gen Y as being irresponsible money managers, they are developing good saving habits early on with four out of five participants indicating they save some money every month.
However, it also found they are accruing more debt at an earlier age than previous generations, with 40 percent reporting it is due to study costs.
Nearly half of participants surveyed reported undertaking post-school study, leading to Gen Y having outstanding study debts in addition to having to make choices about where to spend, save or invest for the future.
Long-term financial security is also on the backburner for many in Gen Y as most saving is generally for short-term purchases and experiences.
The research that concluded that Gen Y would be greatly assisted by improvement in financial literacy for help in making decisions as they gain financial independence.