Generation Y is set to spend up big this Xmas on everything from gaming and iPods to new phones and HD TV screens according to a new research study conducted by financial services Company ING, however some segments of the Australian market intend to cut back.
Generation Y is set to spend up big this Xmas on everything from gaming and iPods to new phones and HD TV screens according to a new research study conducted by financial services Company ING, however some segments of the Australian market intend to cut back.
The new ING survey suggests that 37% of 18 to 24-year-olds plan to spend more this year than last – more than twice the national average.
The survey was carried out among 1052 Australians and was conducted after the federal government announced a $10.4 billion stimulus package to encourage consumer spending.
It found that despite Gen Y’s eagerness to spend, the stimulus package may not result in a widespread lift in holiday spending.
Seventy-three percent said they intend to cut their spending this Christmas, and one-quarter will spend less on food and alcohol. The survey found Australians will spend an average of $1289 over the Christmas holiday period; 42% will cut back on eating out and going out; 42% will spend less on holidays and travel; and 38% will spend less on gifts.
Despite the eagerness of Gen Y to spend big this Christmas, 67% plan to reject credit cards and store cards in favour of cash – indicating they will be spending within their means.
“Younger Australians have fewer financial responsibilities, more confidence, and less worries than the general population,” ING Direct executive director Lisa Claes said.
“They’ve never experienced an economic downturn or job losses before, and judging by their spending plans, they’re not too fazed by the prospect.”
