A report commissioned by the Commonwealth Bank of Australia (CBA) found that 73 per cent of Millennials struggle to prioritise their finances, despite 70 per cent saying being in control of their finances gives them a sense of accomplishment.
CBA head of behavioural economics William Mailer said a third of Australians in this age group recognise they make too many impulse purchases but that they struggle to set a budget and stick to it.
“Managing today’s finances while also preparing for tomorrow is difficult for anyone.
“It’s no surprise that our recent survey showed that so many young Australians are facing some level of financial anxiety with these decisions,” he said.
While the research found that many Millennials struggle to prioritise their finances, it also uncovered that exercising daily (50 per cent), paying all of their bills on time (48 per cent) and knowing how much money is in their bank account (37 per cent) are their top three stress relievers.
Further, when it comes to the daily “small wins”, 70 per cent of Millennials say it is being in control of their finances that provides them with the biggest sense of accomplishment.
Dr Gina Cleo, director of Habit Change Institute, said accomplishing small wins is linked to confidence, which is the key driver in being likely to reach long-term goals.
When compared with those who weren’t in tune with upcoming bills, Millennials who were very confident in their visibility on their monthly bill payments were three times more likely to believe they will achieve their long-term savings goals (50 per cent compared with 16 per cent).
“When Millennials believe in their ability to set realistic goals, they become motivated to achieve these milestones. It is through creating daily habits that we can seamlessly implement into our routine that we begin to alleviate stress and start to make consistent, impactful strides towards our long-term goals,” she concluded.
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