Millennials aren't so bad at keeping track of their money, ANZ report shows

Friday, 20 April 2018

ANZ's managing director of retail and business banking Antonia Watson says millennials use their phone to access their bank balance day-to-day but preferred face-to-face contact for more important decisions.

Not all millennials buried into their phones are tagging their friends in memes.

A new ANZ Financial Wellbeing report showed millennials were more likely to check their bank accounts several times a day than any other age group - over 75 per cent check at least once a day.

ANZ's managing director of retail and business banking Antonia Watson said millennials had to be targeted in a communication channel they were comfortable with.

'It's interesting to see how in touch millennials are with their bank balance because it's in their pocket. But when it comes to big decisions, like home loans or KiwiSaver, they are more inclined to having a face-to-face conversation,' Watson said.

Over 75 per cent of millennials check their phones at least once a day.

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The report also showed just over half of the 18 to 34-year-old cohort felt confident in their ability to manage day-to-day spending.

But, it's not all rosy. This age group struggled more with long-term saving.

Only two in five millennials feel like they were on top of their money and only one in three had at least three months' income saved.

Massey University's financial education and research centre director Pushpa Wood said getting young people to save for the future required a change in their mindset.

'After living on noodles and soup and coming out of university with a hefty debt, when you get your first job you're likely to spend more because now you can afford all those things you couldn't,' Wood said.

'But even just saving aside $10 or cutting out that coffee once a week or having an incentive to save, like a holiday or concert could all add up.'

'Having some surplus in your bank account is useful for a rainy day.

'It's not the amount you save, it's having the conviction to save,' Wood said.

Wood suggested people put lump sum of savings money into a short, medium and long-term savings account.

Many contributors to financial wellness were socio-economic (like incomes), and attitudinal (like expectations), but ANZ's research indicated that 'behaviours' contributed significantly to financial wellbeing, giving many Kiwis with lower levels of financial wellbeing an action plan of behaviours to mirror.

The two highest-impact behaviours were regularly saving and not borrowing to pay day-to-day expenses.

The survey found only a quarter of millennials always made plans or a budget when they received their regular income.

Watson said overall findings of the survey showed that there was also a big divide in financial wellbeing between home owners and renters.

Renters were the most likely to rarely or never save and those who own their homes are the most confident in all aspects of their finances, she said.

'To improve New Zealanders financial literacy we need to start with our kids at school. Learning the basics at a young age is important and financial education needs to be integrated into our curriculum,' Watson said.