Despite have better financial habits than the overall population, millennials are still pessimistic about their financial future, research from Mortgage Choice and CoreData’s Financial Fitness whitepaper shows.
The whitepaper revealed that 23 per cent of millennials monitored their finances at least once month, and 56 per cent monitored their finances at least once a week, which was higher than the national average of 52 per cent.
It also showed millennials were better at saving than the overall population, with 21 per cent citing they save more than 20 per cent of their net income after paying their mortgage rent and other living expenses, as compared to the 16 per cent national average.
Mortgage Choice chief financial officer, Susan Mitchell, said the research suggested the majority of millennials have the right intentions when it comes to money management.
“The majority say their greatest priority in life at the moment is saving and budgeting, followed by paying for living expenses and then buying a property,” she said. “However, despite their positive financial habits, the research suggests that Millennials are apprehensive about their financial future.”
Just under half of millennials (45 per cent) said they were not confident that were on track to achieve financial success, and almost 80 per cent were worried about their current financial situation. Stress was more prevalent in females too, with 57 per cent feeling stressed as compared to 51 per cent of men.
Forty per cent of millennials also said their single greatest concern for the next 12 months was the rising cost of living, and factors like personal debt was impacting millennials’ ability or willingness to purchase property.
The survey found that there was a lack of understanding of the value of financial advice among millennials, with many choosing only to seek one when they are in financial stress.
“The reality is an experienced financial adviser can help you plan for your future, regardless of your level of wealth, and give you peace of mind that you are on track to meet your goals,” Mitchell said.