6 in 10 Millennials lack savings plan: CBA

Research released by the Commonwealth Bank of Australia (CBA) has found that 61 per cent of Australian Millennials do not have a regular savings plan.

The survey – which was conducted online by YouGov Galaxy during April using a sample of 1,002 Millennials aged between 24 and 39 years old across Australia – found that 58 per cent of respondents cited buying a house as making them feel most “adult” when it comes to financial achievements, but only 28 per cent have done so to date.

However, 58 per cent of Millennials said that they intend to buy a home or investment property within the next five years, the survey found.

It also found that 31 per cent still do not feel comfortable talking about money.

Almost half of all respondents (49 per cent) said that they wish they could have more open discussions to develop better ways to manage their money and save more.

The topics they are most eager to discuss are strategies to inch ahead financially (54 per cent) and spending and savings habits (53 per cent), the survey found.

The research, which also examined attitudes and habits of Millennials towards their personal finances, found that while 33 per cent of respondents try to direct money towards savings where possible, one in 10 is still living pay cheque to pay cheque.

While buying a house ranked as the most significant financial achievement, Millennials ranked other smaller goals that feel more achievable, including having a full-time job (37 per cent), saving more money than they spend (35 per cent), moving in with their partner or getting married (33 per cent), moving out of their parents’ house (29 per cent), having a fridge full of groceries (22 per cent), and paying for their own streaming services (12 per cent).

One in five (20 per cent) Millennials has prioritised short-term savings goals, while 18 per cent prioritise long-term savings goals, according to the research.

Meanwhile, the survey results revealed that a quarter of all respondents said that they favour digital banking for transparency of their finances.

CBA executive general manager of everyday banking Kate Crous said that only 39 per cent of Millennials have a savings plan that they adhere to each time they are paid.

She added that while Millennials have recognised the importance of a savings plan, they feel that they require more strategies and tools to assist them with building their savings.

She said: “We recognise many young Australians want to be more in control of their spending so they can start focusing on longer-term goals, whether that’s saving for a rainy day or buying a home.”

[Related: Younger cohort struggle with finances: survey]  

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.