In a time when Aussies are plagued by mortgage debt, rising rates and ever-increasing utility bills, the younger generation has chosen to live a more decadent lifestyle.
Prosple surveyed 600 Australians aged between 20 and 35 and found rather than plan for the immediate future, younger Australians would prefer to enjoy the good life and are spending $358 a month at restaurants and bars.
That’s seven times more than they would spend on their energy bills and one and a half times more than the amount of debt paid off each month.
The report found men spend more than women do on drinking and dining out, but they are also paid more and able to set more money aside in a savings account.
While women are still not being paid as much as men in the workplace, the report found they are being savvy with their money and are better at finding financial products to suit their needs.
Gen Credit Savvy
Recent trends in credit spending have shown Aussies are being smarter when it comes to paying off their credit debt and the younger generation is leading the way.
The market savvy age group of 20-35 year old Aussies are taking advantage of credit products such as 0% purchases deals, 0% balance transfers and interest free periods to be able to make purchases on their credit cards and incurring very little interest.
The terms and conditions on these cards encourage card holders to pay off their debt quickly in order to avoid high fees and interest, which in turn is developing better spending habits.
The new credit card reforms are helping the situation further as banks must now inform consumers of how long it will take to repay debt on minimum repayments and can no longer increase spending limits without permission.