09-Aug-2016 • Corporate
Gen X and Gen Y have it financially tougher than older generations when it comes to achieving the key life milestones, according to a survey by bank lender ME.
ME commissioned the survey using a panel of 1,000 Australian adults.
When all respondents were asked to rate the challenges they experienced in achieving 10 different life milestones, more younger than older generations indicated greater financial challenges across 9 of the 10 milestones.
Younger generations nominated ‘starting your own business’, ‘buying your first home’ and ‘raising a family’ as their top challenges, while older generations nominated ‘having money left over for holidays and luxuries’, ‘starting your own business’, and ‘making ends meet’ as their top challenges.
ME head of Deposits and Transactional Banking, Nic Emery, said: “There’s often debate about whether younger generations are struggling compared to their older compatriots and these findings support the argument that they are experiencing greater financial challenges.”
“As a bank we see firsthand how hard it is for younger people, particularly for Gen Ys buying a first home, when average house prices are seven times the average income today compared to three times thirty years ago.
“With greater financial challenges, it’s more important than ever for younger Australians to have solid money management skills.”
The survey also found women are finding it tougher than men.
Nearly three quarters (73%) of women said they found it difficult to start their own business – 11 points higher than men – and 63% said earning a decent income was difficult, compared to just 53% of men.
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Editor notes:
Note about the survey: Survey conducted via I-view Research in March using an online survey method. Survey completed by >1,000 Australian adults.
Generations referred to include:
Gen Y: born between 1980-1996
Gen X: born between 1965-1979
The Baby Boomers: born between 1946-1964
The Builder Generation: born between 1939-1945