Data released Thursday by ME Bank found young Australians with no children are looking to pay off their home loans, save to enter the property market and invest in their own businesses in 2022.
The survey of 1,500 Australians revealed a major shift in savings perceptions of young Australians over the past six months across lifestyle segments.
ME Bank notes the lifestyle segment has historically favoured traditional goals such as building up rainy day savings, saving for expenses other than a home, paying off debts and setting up a budget, but has flipped priorities on their head entering into 2022.
In the six months to December 2021:
- 29% of young Australians with no children are intent on ‘Paying off a mortgage’.
- 19% of young Australians with no children set their eyes on ‘Saving enough to buy a property to live in’.
- 18% of young Australians with no children look to ‘Invest in your own business’.
From the last reporting period in July 2021, for young Australians without children ‘Paying off a mortgage’ and ‘Saving enough to buy a property to live in’ rose three percentage points, while ‘Investing in your own business’ increased 14 percentage points.
Despite the push for investing in business, paying off a mortgage remained a top financial priority for couples with either young or older children at 34%.
ME Bank says the notable shift in the perceptions of young Australians without children to bet on themselves and invest in their own businesses shows the global phenomenon dubbed ‘the Great Resignation’, could be starting to hit Aussie shores.
ME’s General Manager John Powell said we have all been impacted or know someone who has been impacted by the COVID-19 pandemic, which often includes their finances and priorities.
“People have had to pivot and reassess their financial goals in ways they never have before,” Mr Powell said.
“We’ve seen a global trend emerge where people are ditching their desk jobs to start their own businesses - it’s interesting to see young Australians having the intention to follow suit.
“Investing in a business comes with a fair amount of risk and reward, and it’s also a huge investment of time and energy, which may explain why young people without children are prioritising this goal over others.”
Image by Simon Maage via Unsplash.
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