Generation Y: Still Living At Home and Only Hoping To Save Money
George Boelcke FCI
September 19, 2007
A recent BMO survey conducted by Decima Research asked non-homeowners under age 34 for some savings and home purchase feedback.
Just like paying off our debts, the survey shows a real disconnect between the reality of what’s happening and the dreams of what the respondents would like. Here’s what I mean:
The survey was conducted with more than 1,200 people aged 21 to 34 who had aspirations to purchase a home in the near future. Of those, nearly a third are still living at home to save for a down-payment. But even in the 31 to 34 year group, a large number are still living with their parents.
The response was that they’d likely be purchasing a home in the next few years – yet they’d only been saving for a down-payment for an average of 1.6 years. And what are they saving? Less than 13% of their income – even though they’re still living at home!
The respondents said they’d likely save more than 15% for a down payment and that it would take less than four more years to save that amount. Yet there’s a real disconnect between what they’d like to do and what they’re actually doing to save a ton of money.
The savings aren’t happening, even when this age group has a real focused and tangible goal. In another recent survey, pollsters asked 18 to 21 year olds whether they’d start a savings plan of some kind in 2007. Over 90% of them said yes – but when that’s compared to the survey the year before, less than 20% actually did do it. The lesson? All the wishing, hoping and positive thinking isn’t going to make it happen.
It’s not just Generation Y, but don’t all of us have real trouble finding a way to save? Why? For this group, it’s likely impossible, due to student loans and their credit card balances. But for the rest of us, isn’t it also our current debts that are killing our dreams for the future?
Actions speak louder than words, and just having good intentions doesn’t make anything happen. It takes a big goal, a strong desire, a specific financial plan and payroll deduction or the savings coming right out of our bank account.
It’s called paying ourselves first and creates financial freedom in the same way as paying down our debts which are currently making creditors rich and keeping us broke.
Just like paying off our debts, the survey shows a real disconnect between the reality of what’s happening and the dreams of what the respondents would like. Here’s what I mean:
The survey was conducted with more than 1,200 people aged 21 to 34 who had aspirations to purchase a home in the near future. Of those, nearly a third are still living at home to save for a down-payment. But even in the 31 to 34 year group, a large number are still living with their parents.
The response was that they’d likely be purchasing a home in the next few years – yet they’d only been saving for a down-payment for an average of 1.6 years. And what are they saving? Less than 13% of their income – even though they’re still living at home!
The respondents said they’d likely save more than 15% for a down payment and that it would take less than four more years to save that amount. Yet there’s a real disconnect between what they’d like to do and what they’re actually doing to save a ton of money.
The savings aren’t happening, even when this age group has a real focused and tangible goal. In another recent survey, pollsters asked 18 to 21 year olds whether they’d start a savings plan of some kind in 2007. Over 90% of them said yes – but when that’s compared to the survey the year before, less than 20% actually did do it. The lesson? All the wishing, hoping and positive thinking isn’t going to make it happen.
It’s not just Generation Y, but don’t all of us have real trouble finding a way to save? Why? For this group, it’s likely impossible, due to student loans and their credit card balances. But for the rest of us, isn’t it also our current debts that are killing our dreams for the future?
Actions speak louder than words, and just having good intentions doesn’t make anything happen. It takes a big goal, a strong desire, a specific financial plan and payroll deduction or the savings coming right out of our bank account.
It’s called paying ourselves first and creates financial freedom in the same way as paying down our debts which are currently making creditors rich and keeping us broke.
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