Financial stability front of mind for Gen Z

Westpac has revealed that Gen Zs (aged 14–29) were the most likely to set New Year’s savings resolutions and successfully meet those goals over the year, with 65 per cent of Gen Z customers establishing a savings goal in the lender’s banking app.

According to Westpac, the most common goals among Gen Zs were financial (41 per cent), followed by fitness (33 per cent), career (32 per cent), weight loss (31 per cent), travel (29 per cent), and personal growth (21 per cent).

Comparatively, 37 per cent of Millennials have set savings goals for the year, followed by 25 per cent of Gen X customers and 12 per cent of Baby Boomers.

Managing director of cash and transactional banking, Mandy Rutherford, noted the growing emphasis on saving among younger customers.

“There can be tension in your twenties between prioritising long-term financial goals, such as owning a home or retiring early, and the desire to spend money socialising with friends and travelling – especially when you may not have major work or family commitments,” Rutherford said.

“Despite this challenge, it is encouraging to see many young Australians setting and sticking to their financial goals. While a considerable number are saving for holidays, a large proportion are also saving for a home or a rainy day, which shows they are planning for their future.

“Gen Zs setting financial goals are determining how much money they need to put away to meet them, with the majority having increased their savings last year.”

Westpac’s findings further revealed that 46 per cent of Gen Zs are already saving with someone else, most commonly with a significant other (31 per cent), followed by a parent (10 per cent), sibling (9 per cent), or a friend (5 per cent).

“Sticking to a savings goal can be challenging, especially when faced with financial pressures such as changing careers or moving out of the family home, which is common in your twenties,” Rutherford said.

“Saving with someone can help maintain motivation and achieve a joint goal sooner, whether it’s for a holiday with a friend or new furniture with a flatmate.

“While many young Australians choose to save together, some don’t, preferring to keep their financial situations separate.

“Shared Goals offers a solution, allowing users to save together towards a common goal while keeping their savings separate, providing the benefits of a savings buddy without some of the risks associated with pooling money.”

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Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.