Study Shows Young Adults Prefer Vacationing Over Home Owning

A surprising new trend is taking place in Australia. It seems that a majority of young Aussies (ages 25-34) are putting their savings into holiday/vacation plans, rather than owning their first home. This group is saving an average of $533 a month, with men saving 46.5% more than women. This is also taking into account that both Australian men and women are putting aside similar proportions of their income.

As for what is making them choose fun times over responsibility, the answer is rather simple. According to Suncorp Bank’s regional manager, Monique Reynolds, younger Australians want “intangible experiences over tangible assets”. She went on to say that “while property investment appears to be a big motivation amongst this group compared to other generations, it is interesting to see their motivation appears to be heavily focused on a holiday and other social experiences, rather than the traditional Australian dream.”

Of course not every case is so cut and dry. A person’s age, whether they have children or not, if they are in deep debt, and where they reside, all have a significant impact on their saving ability. People who live in big cities (Sydney, Perth, Melbourne) are much more likely to focus on a fun-filled holiday right now, and would rather worry about saving for a home when they get “older”. It’s important to remember that younger Aussies, like most young people around the world, have fewer financial commitments than middle-aged people. This makes someone who is older than 35, more likely to be saving for a first home. Middle-aged people are more likely to have children and a mortgage, and are already looking ahead to retirement.

This survey was carried out last month and involved over 3,000 people ranging from ages 18 to 64 taking part in online interviews. No truth to the rumor that the 25 to 34 year old Australians who were surveyed, answered these questions while on vacation!