According to a financial lifestyle study carried out by Australian lender Commonwealth Bank, young adults are following a 'give it to me now' philosophy in their attitude to consumerism and finance.
The bank’s survey suggests that most young Australians aged between 18 and 24 believe they can ‘have their cake and eat it’ with huge aspirations and no plans to save or budget to achieve their dreams.
The bank’s survey revealed that 73% of ‘generation Y’ (18 to 24 year olds) have some form of debt with 57% of those not concerned about the amount of debt they are in. Almost half (48%) said they live day to day and do not let the amount of debt they are in affect their daily purchases.
Although just under 60% of Generation Y wants to buy a car and nearly 50% want to achieve the great Australian dream of owning their own property within the next five years, less than 40% say they are actually saving up and budgeting for these big-ticket items or other luxuries on their wish-lists including overseas holidays, PCs and home entertainment systems.
According to the survey, young adults are not savvy enough at managing their money with 90% feeling they should know more about financial matters. Seventy three percent rely on parents or other family members for advice about their cash.
To respond to the needs of Generation Y, the Commonwealth Bank has developed an initiative called ‘Know Your Money’ which aims to help young Australians learn more about how to make the most of their cash.