Gen Ys wary of much-needed advice
Gen Ys may need financial advice to overcome their money fears and learn good savings habits but many do not trust financial planners, according to a REST Industry Super survey.
It found that 61 per cent of Gen Ys were never taught how to save, while almost two thirds had been kept awake at night by financial concerns.
REST Industry Super chief executive Damian Hill said the situation was not surprising given Gen Ys' low take-up of financial advice.
Half of the respondents said they would not talk to a financial adviser while one in 10 completely distrusts them.
"With over half the generation refusing to talk to a financial expert, and one in 10 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," Hill said.
Of the small number who received financial advice, 72 per cent said they found it useful.
Gen Ys, despite acknowledging the importance of saving, did not appear to know how to save properly, particularly for the long term.
Although saving was important to 87 per cent of Gen Ys with two thirds saving regularly, those working full time were more likely to save for a holiday or wedding than a house deposit.
Nearly two thirds of Gen Ys had not been taught anything about money from parents while 61 per cent said they were never taught how to save.
Most Gen Ys did not expect to learn anything from their parents in this area, with 70 per cent reluctant to go to family for budgeting, savings or investment advice.
Smarty phone apps are not having as big an effect as financial institutions may have hoped, with only 39 per cent using financial or money-related apps.
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