Millennials are the age group that are most optimistic about their financial future, with 74 per cent saying they will be in a better financial position in two years’ time despite the rising cost of living, new research from BT Financial Group showed.
Over 50 per cent of Australians more broadly, feel more optimistic about their financial position in two years’ time, while 30 per cent believe they will be in the same financial situation and 14 per cent believe they will be worse off.
Millennials remain upbeat about their future despite 40 per cent saying it’s either difficult or very difficult to meet their necessary cost of living expenses like housing, electricity, health care and transport, the research showed.
BT’s head of financial literacy & advocacy, Bryan Ashenden said millennials’ positive outlook was pleasantly surprising and that this group were developing strong budgeting and savings attributes from a young age.
He pointed out that millennials were better savers than people might think, with 17 per cent having savings equal to six months’ income, 11 per cent having equal to four to six months’ income and 23 per cent have equal to one to three months’ income.
However, 28 per cent have savings equal to less than one month’s income and 21 per cent have no savings, Ashenden said.
“We know millennials are often preoccupied with balancing their day to day spending with longer term goals such as a getting a foot on to the property ladder and wealth building,” he said.
“So, it’s good to see that, despite these admirable goals, millennials are looking to the future with confidence and developing good money habits.”