A generation ripe for advice

Members of Generation Y are crying out for advice on financial matters despite lofty aspirations for their financial futures, a discussion forum featuring those aged 18 to 24 heard yesterday.

The forum, hosted by the Commonwealth Bank, also heard that the majority of young Australians currently rely on financial advice from parents or other family members.

Along with presentations from Generation Y members on their thoughts about current and future financial security, the forum also introduced the results of a survey of 800 Generation Y respondents aged 18 to 24 year.

While 48 per cent of the group want to buy their own property and 56 per cent want to buy a car, the survey revealed 87 per cent felt they should know more about financial matters.

However, only 25 per cent said they relied on financial institutions for information on financial matters.

“We know that Gen Y is the most tech-savvy group in society, but when it comes to managing their finances they are not quite so in control,” Commonwealth Bank retail banking services group executive Michael Cameron said.

“It is great that young Australians are ambitious and aspirational, but they need a reality check when it comes to budgeting and saving for their plans.

“It is never too early for Gen Y to start planning and managing their finances.”

According to Generation Y expert Peter Sheahan, debt levels among 18 to 24 year olds (73 per cent have some form of debt) provided an insight into how their behaviour could impede growing levels of financial literacy.

“Financial literacy is not the only thing — it’s a starting point,” Sheahan told Money Management.

“We need to solve behaviours, and these come from values.

“Gen Y values instant gratification, but that’s the antithesis of how you build wealth.”

To assist and inform Generation Y with their financial planning, the Commonwealth Bank last night also launched the ‘Know your money’ program, an interactive website providing information on achieving key milestones.