Young people need a savings plan
Many Gen Ys reach their early 30s with “very concerning” levels debt and a “much lower regard for savings than the [Gen] Xs and boomers”, said Financial planner at PSK in Sydney, James Gerrard.
The latest figures from credit-reporting agency Veda show Gen Ys are responsible for 60 per cent of defaults across all accounts types, up 5.3 per cent in the past three years.
“They feel like they can never buy a home so they get disheartened and focus on just enjoying themselves,” Gerrard says. This includes spending lavishly on things such as restaurant meals, holidays and technology items.
Gerrard's advice often consists of a remedial lesson in budgeting and the establishment of a regular savings plan.
Source: Sydney Morning Herald