A new survey shows four out of five young Australians are prioritising financial security during the pandemic and nearly half want to purchase a home now, more than ever. Tim Nicholas, co-founder of the free app GetReminded, says millennials are using technology so they can save money and increase their savings far more than any generation before them.
Nicholas adds: “We’ve seen a 62% growth in the number of people under the age of 35 downloading our app – GetReminded – in the past 12 months. People need a ‘nudge’ to know when an expiry date is coming up. This way they get time to shop around for better deals on recurring household contracts like mobile phones, insurances and energy.”
According to Finder.com.au 43% of millennials only have one credit card and they’re more inclined to stay on top of their credit card repayments, generally taking around four months to pay off a credit card repayment. In contrast, baby boomers are noted for having several credit cards and along with generation X, they usually take double the amount of time to make full repayments – up to eight months.
“Money saving and budget tracking apps make it easier and a little more interesting for young people to grow their money and see where they can save,” adds Nicholas. “Budgeting and savings apps offer various levels of functionality but their end goal is the same – they give you a breakdown of your spending so you can decide how and where to make cutbacks.”
“It’s easy to rack up bills without realising with everything paid by direct debit – but now is the time to get finances in order,” he says. “With lockdown restrictions in place, consumers are using online services more than ever. However, these charges add up and without physical bills or regular reminders – it can easily be forgotten.”
Case in point – Instagrammer – Aleks Nikolic
Twenty-six-year-old Aleks Nikolic is a case in point, when talking about millennials saving money. Nikolic went from being broke to having $100k in net worth behind her. How did she do it? By simply paying off her debts, including her credit card, and being serious about budgeting.
Nikolic wasn’t always like this but it was a few years ago when her parents were divorced and this brought it home to her that she was now either going to make it herself or not. She’d already maxed out her credit card and knew she could go into more debt or change her habits and start saving.
As she says: “My parents getting divorced made me realise how important it is to have assets, especially as a woman.”
“It really puts into frame how important it is to prioritise your superannuation, have an emergency fund and to stop thinking about ‘treating yourself’,” Nikolic adds.
The first thing she did to make a financial change was to pay off her credit card and then she set goals for what she wanted to achieve financially. Nikolic now budgets her income through a sinking/bucket method – which means having separate accounts for different expenses so she can better manage her money. By doing this, she’s been able to buy an investment property and shares her money tips on her personal Instagram page.
Tim Nicholas of GetReminded says Nikolic’s story is a more common one these days because millennials are jumping on money saving and budgeting apps to help keep them on track.
“It’s a good idea for people to get into the habit of setting reminders about online services and apps when they subscribe to ensure they are not throwing money down the drain,” he adds. “There are a number of free apps that help you do this – like GetReminded – which automatically reminds you so you can decide if those online services are still worthwhile paying for.”
GetReminded is a free app for iOS and Android smartphones that enables users to set reminders for when it’s time to renew contracts, policies and documents to avoid leaving it to the last minute and overpaying.
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