Australian millennials are bad with managing their money

YOUNGER Australians are content flitting their money away on avocado on toast dining and overseas jaunts rather than saving.

EXCLUSIVE

YOUNGER Australians have been exposed as irresponsible with their money, choosing to eat avocado on toast out and expensive travel over saving.

Concerning new findings show many millennials live from one payday to the next and have no savings at all, data from financial phone app Acorns have revealed.

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What is a millennial?

One in three millennials don’t have a personal budget and 1 in 10 don’t bother saving any money at all.

Many millennials admit they are bad with managing money and have no savings at all.

Acorns chief executive officer George Lucas said many younger Australians have short-term savings goals which is usually for discretionary expenses such as holidays.

“One of the reasons the generation before used to save a lot of money was because they were saving for a house, but when people are constantly being told they can’t afford property they ask, ‘why am I saving’,’’ he said.

“The avocado on toast issue is definitely a problem ... millennials know all the latest restaurants and cafes and they like going to them.”

Many millennials admit they live from one pay cheque to the next.

The research also found four in 10 millennials live from one payday to the next and only 18 per cent are worried about their financial future.

This week Treasurer Scott Morrison announced a budget measure to give hopeful property buyers generous tax breaks by allowing them to direct pre-tax income into a savings account to help them get their foot on the property ladder and address the housing affordability issue.

Consumer finance expert Lisa Montgomery said “tap and go” technology and updating social media feeds had come at a price for millennials.

Consumer finance expert Lisa Montgomery said it’s important millennials look at ways they can cut back unnecessary spending.

“They have got the pressures of their needs and their wants, the cafe, bar and restaurant combination really puts pressure on their income because a round of drinks no longer costs under $20,’’ she said.

“The addition of social media makes us want to put up things when we are wearing something nice or drinking something nice and it comes at a price.”

She urged millennials to go through the past three to six months of their expenses by looking at their bank statements or online banking to see where expenses can be curbed.

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