Gen Y shun professional advice
The generation Y cohort are more likely to go to a friend or family member for financial advice than a professional, according to RaboDirect.
RaboDirect's Financial Health Barometer showed 24 per cent of the generation Y respondents were would rather go to family, friends or colleagues for financial advice in 2014, compared to 16 per cent of total respondents.
Executive general manager Greg McAweeney said generation Y faced housing cost pressures even with low interest rates, combined with slowing earnings growth.
"It's encouraging to see that Gen Ys are happy to talk to others for financial advice — if you're finding dealing with your finances stressful, a second opinion can help set you straight and give you some practical steps to take to improve your financial outlook," he said.
"My only warning would be that relying on friends and family isn't always the smartest plan."
The survey of 2300 Australians aged 18-65 also found Generation Y were the group most likely stressed and overwhelmed by dealing with money (47 per cent versus 35 per cent of total respondents).
This is despite 33 per cent of Generation Y respondents saying they were saving more than they were in the 12 months before (33 per cent versus 24 per cent of total), saving $943 a month on average, compared with $908 of the rest of the population.
In 2014, 56 per cent of Generation Y said they tried to keep up to speed on financial and money matters, a drop from 2013's 61 per cent.
AUTHOR
Malavika Santhebennur
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
