A recent study from Airbnb found that most millennials from the US, the UK and China would prioritize travel over buying a home or paying off debt.
Looking specifically at Aussie Millennials, recent research from Budget Direct has also found that most 18 to 24 year olds are prioritising travel over saving for a house deposit.
Budget Direct’s survey of 2,800 Australians in January 2017 found that 64% of millennials don’t have a savings plan. Of the 18-24 year olds that did have a savings plan, 32.6% said they were prioritising travel while only 16.7% prioritised saving for a house deposit.
Young Australians are struggling to save
Interestingly, 36.4% of respondents only manage to save less than $100 a month, which makes it a long road to save enough for a house deposit!
What are Aussie millennials focused on saving for?
- Renovations or large household items – 3%
- Engagement or wedding ring – 5.6%
- Holiday travel – 32.6%
- Consumer goods – 11.7%
- House deposit – 16%
- Car / vehicle – 20.1%
- Other – 28.6%
Why do Aussie millennials prioritise travel over buying a home?
When I talk to a lot of my friends (and yes I am an Aussie Millennial), a hot topic is always travel, I feel as though young Australians feel as though they should go on adventures while they are young and not tied down to anything. The dream for a lot of people is to explore the world before starting a family.
To me it makes a lot of sense, as someone who is saving for both travel and a house deposit I can understand why people are prioritising travel – I think it’s important to travel to new places and explore new things. I do admit that I am very lucky that I have a great job that allows me to save a significant part of my income so I’m in a position where I can save for both – not many millennials have this luxury. And to be honest if I could only choose one to save for right now it probably would be travel.
I do however think it is wise to have both a travel savings account and a home/wedding/emergency savings fund (even if you are only putting in small payments each month, it all adds ups!). As with most things in life, it’s all about balance!