One in four Kiwi Millennials says their budgeting skills are “great”: new research

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Millennials are known for being supposedly wasteful – but it seems that poor money management isn’t responsible for their struggles to afford their own home.

In fact, new research shows that most young Kiwis are just as good at budgeting as their parents.

And while Auckland University students admit they sometimes spend on food and entertainment, they say they are usually careful with their finances.

According to a survey by Perceptive Research on behalf of the credit reporting company CreditSimple.co.nz, a quarter of 18- to 24-year-olds consider themselves “excellent” at budgeting.

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The same proportion of baby boomers rated their budget literacy as “excellent” compared to just one in 10 of Generation X (ages 35 to 44).

Melissa Zhu, a 24-year-old student from Auckland, says that carefully monitoring her finances while studying saved her money.

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Auckland student Melissa Zhu, 24, says that carefully monitoring her finances while studying saved her money.

Another 50 percent of millennials said they knew their income and expenses “fairly well”.

Given the results, three young Aucklanders shared their budgets and money-saving hacks Stuff.

Melissa Zhu, 24, optometry student
Income (per week): $ 231.92 from the cost of living on the student loan, plus wages from part-time work as an optometrist (varies)
Expenses (per week): $ 250 (rent, bills, and transportation)
Savings: every extra

Zhu said she cut costs by living with people who owned their own homes rather than living with other students, and she would make a conscious choice to live outside of the suburbs, where rents were more affordable, from those of them but she could still commute to the city center without any problems. She also cooked most of her meals and ate about twice a month.

She put the extra money she earned in a high-interest savings account and only bought luxury when she had enough on a second account to cover a month’s expenses and 10 percent extra for emergencies.

“Before I buy something that I don’t really need, I think, ‘What are the real costs and benefits of buying?’ “If I buy this coffee five times a week, does that mean I can’t afford to have a really good meal at the end of the week?” She said? Stuff.

Dhilesh Vasan, 20, is helping other millennials learn about budgeting through the SavY charity.

CHRIS MCKEEN / STUFF

Dhilesh Vasan, 20, is helping other millennials learn about budgeting through the SavY charity.

Her only vice was makeup, and even then she only allowed herself to go shopping when she had money to spare.

Jess *, 21, student
Income (per week): $ 700 per week from her wages and Studylink payments
Expenses (per week): phone bill $ 12.50, gasoline $ 20, health insurance $ 9.54, and food $ 150
Savings (per week): $ 200 short term (travel fund), $ 300 long term (for their future, possibly a home deposit)
Remaining (per week): $ 75 (approx) spending money

Jess works full time and lives with her parents to save money.

Most millennials think they are good at budgeting, according to a survey.

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Most millennials think they’re good at budgeting, according to a survey.

“I try not to spend as much as possible because in the long run there might be something I could use these funds on,” she said.

When she pampers herself, it is mostly packaged foods when she is too tired to cook.

She said she generally didn’t spend all of $ 75 in pocket money.

“It could just be the naughty sushi here and there just to pamper me in terms of the food. It’s not something I definitely have to spend. It’s more like a piggy bank that I go into and spend on everything can what I see, “said Jess.

Dhilesh Vasan, 20, a commercial and natural science student
Income: $ 309, including student grants and part-time wages
Expenses (per week): phone bill $ 5, transportation $ 30, food $ 20, entertainment $ 30, meals $ 100, indoor soccer $ 5
Investments (per week): $ 69
Remaining (per week): $ 50

Vasan is helping other young people improve their financial literacy through the SavY charity, and said while the results of the Perceptive Research survey were generally encouraging, he was concerned that Aucklanders were worse at budgeting than their regional counterparts.

He said most young people went wrong trying to live beyond their means, especially when it came to socializing, Vasan said Stuff.

“What I really try to convey with friends and in workshops is that you have to decide what fun you want to have, put some money at your disposal and then stick to this plan strictly.

“It’s perfectly fine to say ‘there are a lot of cool movies coming out lately so I want to spend more of my money on them’ and you might think ‘Kendrick Lamar is in town and I really want to go to his concert’ People get tangled when they say, “There are a lot of cool movies out there and I want to see Kendrick Lamar, I won’t plan it, I’ll just have it all.” A little more self-control would bring them into a better position later. “

* Jess asked not to use her last name.

How millennials rate their budgeting
“Excellent” 26%, “Good” 50%, “Average” 20%, “Bad” 3%
(Source: CreditSimple.co.nz)

Budgeting tips

  • Do you have a goal – what do you want to save for?
  • Calculate what you are already earning and spending. Be honest.
  • See where you can save – are you spending more than necessary on rent / entertainment?
  • Be responsible. Show friends or family members your budget and ask them to help you stick to it.

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