Gen Y serious about saving for first home

by Julia Corderoy19 Aug 2014
Generation Y have the most money tucked away in their piggy banks, as they wait patiently for a chance to enter the heated property market.

Gen Y – which refers to people aged 18-34 years – have amassed the nation’s highest personal savings, according to the latest ING Direct Household Financial Wellbeing Index. Gen Y households in NSW have median savings of $27,103, compared to $12,057 nationally.

Due to their savings status, Gen Y households in NSW are less concerned about ‘maintaining lifestyle amid rising living costs’. Only 29% of Gen Y are concerned about the tough times ahead, compared to 36% of Gen X households (aged 34-39) and 69% of baby boomers (aged 50-64). 

Despite their fatter savings accounts, the financial wellbeing index shows that Gen Y are keen to grow their savings even more. Thirty-once per cent of Gen Y households want to find a better paying job, compared to 19% of all NSW households. Nineteen per cent of Gen Y households plan to work longer hours to increase earnings, compared to 11% of all NSW households. 

Executive director of customer at ING Direct, John Arnott says, “The ongoing plans of the state’s Gen Y households to grow savings at the expense of non-essential expenditure suggest that home ownership remains a key personal goal.”