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Doing your banking this October Long Weekend

For Greater Bank customers, managing your money this October Long Weekend is a breeze. Here's all the information you'll need.

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Author: Greater Bank

Millennial Money Habits: Behind the Scenes

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Mocked for their carefree spending on smashed avocado in contrast we found generation Y surveyed as more concerned about money than the average Australian*.

We spoke to four individuals in their mid-20’s to get a clearer picture of millennials and their financial behaviours, objectives and fears.

Meet Erin

  • Age: 25
  • Gender: Female
  • City: Newcastle
  • Job: Marketing

Do you budget?

Yes, I budget monthly. 10% of my monthly pay check goes into short-term high-interest savings account which is used for saving up for travel and holidays, while 20% goes into a separate long-term high interest savings account. My rent is quite cheap because I’m in a large share house, so my monthly expenses only equate to 34% of my salary. This includes rent, gym membership, travel (opal card top-ups), phone bill, Netflix, internet, gas, water and electric. 36% of my monthly budget is for groceries and splurging on whatever I want (mainly eating out and online shopping)!

Do you consider yourself a saver or a spender?

Both. I have a good savings plan and I normally stick to it. However, my weaknesses are clothes and beauty products and I’ve been known to impulse shop online, especially during sales.

What kind of spender are you?

I’m probably a high spender. I have no assets and no kids, so most of my income is disposable.

What are your two biggest monthly costs?

Outside of my savings plan:
1. Rent
2. Gym

What are your biggest luxury expenses?

1. Eating out
2. Online Shopping

Do you think about your financial future?

Yes – I want to buy a house, be able to travel and know that I can retire comfortably.

“I have a mixed approach to finances. I plan and save well, but I impulse spend.” | Erin, 25

Meet Alex

  • Age: 26
  • Gender: Male
  • City: Newcastle
  • Job: Sole trader

Do you budget?

I'm a sole trader and my income varies from week to week, so I don't budget in the sense that I have a strict amount set aside for each expense (rent, groceries, transport), but I live within my means and adjust my spending in each week/month accordingly.

Do you consider yourself a saver or a spender?

Saver.

What kind of spender are you?

I’m a low to medium spender.

What are your two biggest monthly costs?

1. Car (petrol, insurance, maintenance)
2. Dining/restaurants/pubs

What are your biggest luxury expenses?

1. Music equipment/instruments
2. Travel/flights/accommodation

Do you think about your financial future?

I do, but not so much that it reduces my desire to pursue short-term enjoyment such as holidays, live entertainment and social outings.

“Being a sole trader has greatly increased my ability to manage my finances, particularly regarding putting a percentage of my income aside for tax. I keep my long terms savings in a high interest account that requires regular deposits, and I am generally fairly frugal with small everyday purchases, which makes a difference when it comes to additional or short-term savings goals. I'm single and have no children, so managing finances without having to consider dependents is fairly doable with my current income.” | Alex, 26

Meet Makaylee

  • Age: 27
  • Gender: Female
  • City: Coffs Harbour
  • Job: Travel agent

Do you budget?

No.

Do you consider yourself a saver or a spender?

Saver and spender.

What kind of spender are you?

I’m a low spender, but I don’t make cheap purchases. I prefer to save up and invest in quality products.

What are your two biggest monthly costs?

1. Rent
2. Car loan repayments

What are your biggest luxury expenses?

1. Alcohol
2. Food

Do you think about your financial future?

Yes, I save money each time I get paid.

Meet Mark

  • Age: 26
  • Gender: Male
  • City: Kiama
  • Job: Doctor

Do you budget?

I budget monthly.

Do you consider yourself a saver or a spender?

I save more than spend, so I can have money for adventures or big purchases every year or so.

What kind of spender are you?

I think I am a low spender.

What are your two biggest monthly costs?

1. Rent
2. Car

What are your biggest luxury expenses?

Donations, work related expenses (insurance, courses) and alcohol.

Do you think about your financial future?

I don’t worry about my financial future. But I think about what I can do today to make sure I’m never stuck financially.

“If I’m smart with money now, I can open up more opportunities that come up unexpectedly, like travel or helping people.” | Mark, 26

What can we learn from our four millennials? Well, all four consider their finances in their day-to-day, just in different ways.

We can see from our sample group that putting aside a portion of your income every month to save is a best practice. Whether it’s Mark saving for more opportunities or Makaylee saving so she can afford quality items; each millennial balances their finances to suit their lifestyle.

Erin valued a high interest savings account to ensure she was building on her savings; while still having flexibility for non-essential expenses. This is a valuable money saving tip for those who have money sitting in their bank account gaining little or no interest.

Taking care to save is important but never forget to treat yourself (every so often) with a little smashed avo and toast.

* Source: Roy Morgan Single Source (Australia), 12 months to June 2017,  n = 44,038 Base: Australian 14+ with at least a deposit/transaction account with bank.