Money lessons from Millennials — a generation of savvy savers

Millennials have copped a lot of criticism about their finances and “smashed avocado” lifestyle, but research has found they are avoiding the credit addiction of older generations.

Millennials have long been a punching bag for other generations but there are many creating new pathways for themselves.

Despite being portrayed as a financially unfit generation, they have less credit card debt and better saving habits than more senior generations.

Research by economic consultancy AlphaBeta shows today’s 20-somethings and early 30-somethings are kicking the credit addiction, with the proportion of young people owning a credit card dropping from 58 per cent to 41 per cent in the past 14 years.

“This new generation faces greater financial pressure than the previous generation,” AlphaBeta co-founder Dr Andrew Charlton said.

“Millennials are budgeting more and using new tech to monitor and control their spending.”

Lisa Odewahn and Chris Mavromoustakos bought their first home before age 30.

They’re also cutting back on some discretionary purchases, spending 16 per cent less on alcohol and 71 per cent less on cigarettes, the report found.

Millennial money expert Glen James said the generation dubbed lazy and irresponsible was taking care of their health more than ever.

“The content Millennials engage with on social media focuses on wellness and having an ‘Instagrammable’ lifestyle,” he said. “A pack-a-day smoking habit won’t help with either of these things.”

Almost 93 per cent are comparing prices online, with about three quarters researching products before buying an item worth $100 or more.

“Not only can you get product descriptions, prices and deals, you can also read the experience other individuals have had with a product,” Mr James said.

MORE NEWS:

Do this to get cheaper car insurance

How food delivery apps are biting into our budgets

Millennials are better savers than their parents, with 30 per cent more likely than older Australians to save regularly.

Chris Mavromoustakos and Lisa Odewahn managed to buy their first home before the age of 30, putting down a $160,000 deposit on an $800,000 duplex.

Ms Odewahn, who had been saving since she was in high school, said her saving tip was to cut out money-draining habits.

“Pack your own lunch from home and don’t give in to buying something you don’t need,” Ms Odewahn said.

Originally published as Money lessons from Millennials — a generation of savvy savers