One in two Generation Y members say they refuse to talk to a financial adviser and even fewer ask family members for budgeting and investment advice, according to a survey carried out by superannuation fund REST.
The online poll of 1,000 people aged 18-30 shows that, while the popularly-dubbed ‘me’ generation knows saving is a priority, respondents were worried about money and may not be properly educated about managing finances, both in the short term and for longer term areas like saving for a property deposit. Those working full-time are more likely to save for a major event, such as a holiday or wedding, rather than on a house.
Rest CEO, Damien Hill, says that of those currently receiving financial advice, 72% said they found it useful, but many Gen Y members simply refuse to seek the advice of a financial planner.
“What we found was an alarming number of young Australians spending sleepless nights worrying about their financial position. Considering such a high percentage of the young people we surveyed have never received any financial advice, it’s not surprising that they have on-going financial worries,” says Hill. “We don’t want to see this generation overwhelmed by financial stress throughout the rest of their working lives, and through to retirement.”
One in two respondents said they would not talk to a financial planner and a surprising 72% do not ask family for budgeting, savings or investmant advice, which Hill believes may have implications for their long- term approach to getting assistance in planning their financial futures.
“With over half the generation refusing to talk to a financial expert, and one in ten completely distrusting them, we have to reassess the role of family, government and financial institutions, including superannuation funds, in educating young people about money and helping them make the most of their short-term and long-term financial goals,” says Hill.
REST spokesperson, Becky Roberts, says there’s no indication in the survey that Gen Y’s distrust of financial planners transfers to the mortgage broking industry – but the implications could be far-reaching.
“We know Gen Ys are good savers,” says Hill, “the next step is to teach them to be smarter with their money.”