Gen Y – What has changed since 2006 15 June 2009 The key insights from the 2006 research and re-looking at how Gen Y’s attitudes have since then.

Gen Y participants (2006) Online survey methodology Sample in line with ABS national proportions BASE: WEIGHTED TOTAL SAMPLE N=807 Survey conducted by Galaxy Research on behalf of the Commonwealth Bank, July 2006 * Note, numbers may not add to 100% due to rounding and/or other small categories excluded Total N=807 % Total N=807 % GENDER Male 50 LIVING ARRANGEMENT Live at home with parents 56 Female 50 Live in shared household / flatting with others 19 AGE Renting 19 18 - 20 49 Some other living arrangement 36 21 - 24 51 STATE ACT/ NSW 36 VIC/ TAS 27 STUDY STATUS Studying full time 41 QLD 18 Studying part time 19 SA 8 Not studying at the moment 41 WA 10 REGION Metro 71 Rural 29 WORK STATUS Working in a full time job Working in casual or part time job 37 45 INCOME Under $30,000 58 $30,000 - $49,999 25 Not working at the moment 18 More than $50,000 9 Prefer not to say 8

Key findings from 2006 Australians aged 18-24yrs have a wide variety of aspirations for their lives over the next 5 years, many of which come with a hefty price tag Over 1.2M (67%) want to go on an overseas holiday & 62% aspire to buy a big ticket item such as a laptop More than half (56%) want to buy a car & 48% a property such as a unit, townhouse or house Around 1M (54%) would like to pursue further studies More than half (55%) of those still living with their parents are keen to move out of their home and rent a place Despite lofty aspirations, only 37% of Gen Y have prepared a budget to save money for their wants and only slightly more than half (54%) budget for day to day purchases However despite not having prepared a budget, over 700,000 18-24yr olds (39%) intend to save for their aspirations and 14% will borrow money. Very few intend to ask parents or friends for money Gen Y is already highly leveraged with almost 1.4M (73%) having some form of debt, Just under half (43%) have a HECS / education debt, 32% have credit card debt, 20% a personal loan to a financial institution and 16%v some other type of debt to paid off over time. Among those earning $30K+/yr , 90% are carrying some form of debt.

Australians aged 18-24yrs have a wide variety of aspirations for their lives over the next 5 years, many of which come with a hefty price tag

Over 1.2M (67%) want to go on an overseas holiday & 62% aspire to buy a big ticket item such as a laptop

More than half (56%) want to buy a car & 48% a property such as a unit, townhouse or house

Around 1M (54%) would like to pursue further studies

More than half (55%) of those still living with their parents are keen to move out of their home and rent a place

Despite lofty aspirations, only 37% of Gen Y have prepared a budget to save money for their wants and only slightly more than half (54%) budget for day to day purchases

However despite not having prepared a budget, over 700,000 18-24yr olds (39%) intend to save for their aspirations and 14% will borrow money. Very few intend to ask parents or friends for money

Gen Y is already highly leveraged with almost 1.4M (73%) having some form of debt, Just under half (43%) have a HECS / education debt, 32% have credit card debt, 20% a personal loan to a financial institution and 16%v some other type of debt to paid off over time. Among those earning $30K+/yr , 90% are carrying some form of debt.

Key findings from 2006 Of those with a debt, only 43% are concerned about the amount of debt they have but 52% are influenced in their day to day purchases by the thought of this debt. The majority (68%) have at some time encountered difficulties in finding money pay for something, eg. a large unexpected bill such as vehicle repairs (38%), higher than expected petrol or travel costs (30%), text books that were more than they expected (29%), a large mobile phone bill (23%) or some other large unexpected expense (10%). Not surprisingly, those not living at home with their parents are more likely to have encountered monetary difficulties. Despite the small amount of budgeting in this age group, amongst those who encountered difficulties in finding money for the bills more than half (56%) managed to pay for the expenses from their savings and 8% paid in some other way. More than one third (35%) borrowed money from parents or friends and will pay them back and 24% received money from their parents. Almost one third (29%) have paid these expenses by credit card and 2% have avoided payment. Those not living at home with their parents were less likely to pay for the unexpected bills from their savings and more likely to put it on the credit card. Reliance on a credit card can come at a cost. As many as 80% of those who have used this form of payment for unexpected costs have some kind of credit card debt.

Of those with a debt, only 43% are concerned about the amount of debt they have but 52% are influenced in their day to day purchases by the thought of this debt.

The majority (68%) have at some time encountered difficulties in finding money pay for something, eg. a large unexpected bill such as vehicle repairs (38%), higher than expected petrol or travel costs (30%), text books that were more than they expected (29%), a large mobile phone bill (23%) or some other large unexpected expense (10%).

Not surprisingly, those not living at home with their parents are more likely to have encountered monetary difficulties.

Despite the small amount of budgeting in this age group, amongst those who encountered difficulties in finding money for the bills more than half (56%) managed to pay for the expenses from their savings and 8% paid in some other way. More than one third (35%) borrowed money from parents or friends and will pay them back and 24% received money from their parents. Almost one third (29%) have paid these expenses by credit card and 2% have avoided payment.

Those not living at home with their parents were less likely to pay for the unexpected bills from their savings and more likely to put it on the credit card.

Reliance on a credit card can come at a cost. As many as 80% of those who have used this form of payment for unexpected costs have some kind of credit card debt.

Key findings from 2006 The majority (73%) rely on parents or other family members for advice about money matters. Slightly less than one third (31%) rely on their friends, 25% on financial institutions such as banks or insurance companies, 18% on the financial press and 14% on their account or tax agent. Most 18-24yr olds (87%) feel they should know more about financial matters: 56% would like to know more about taxation matters and 52% about how to better manage their money. Half of all those in this age group agree they should know more about superannuation, 34% about the costs involved in owning cars and 31% about interest rates on credit cards. As many as 42% of those with credit card debt feel they should know more about interest rates than credit cards. Almost two thirds (64%) believe they know quite a lot or a little bit about credit matters such as applying for credit or the consequences if they don’t make a payment. Those aged 21-24yrs and those not living at home with their parents are more likely to say they know about credit matters than those aged 18-20yrs or those living with their parents. Almost one third of those with a personal loan (31%) or a credit card debt (29%) feel they know quite a lot about credit matters.

The majority (73%) rely on parents or other family members for advice about money matters. Slightly less than one third (31%) rely on their friends, 25% on financial institutions such as banks or insurance companies, 18% on the financial press and 14% on their account or tax agent.

Most 18-24yr olds (87%) feel they should know more about financial matters: 56% would like to know more about taxation matters and 52% about how to better manage their money. Half of all those in this age group agree they should know more about superannuation, 34% about the costs involved in owning cars and 31% about interest rates on credit cards.

As many as 42% of those with credit card debt feel they should know more about interest rates than credit cards.

Almost two thirds (64%) believe they know quite a lot or a little bit about credit matters such as applying for credit or the consequences if they don’t make a payment. Those aged 21-24yrs and those not living at home with their parents are more likely to say they know about credit matters than those aged 18-20yrs or those living with their parents.

Almost one third of those with a personal loan (31%) or a credit card debt (29%) feel they know quite a lot about credit matters.

Gen Y participants (2009) Online survey methodology Sample in line with ABS national proportions BASE: WEIGHTED TOTAL SAMPLE N=807 Survey conducted by The Seed on behalf of the Commonwealth Bank, April 2009 * Note, numbers may not add to 100% due to rounding and/or other small categories excluded Total N=807 % Total N=807 % GENDER Male 51 LIVING ARRANGEMENT Live at home with parents 49 Female 49 Live in your own house 13 AGE Renting alone 5 18 - 20 43 Renting with partner 12 21 - 24 57 Renting with friends 17 STATE ACT/ NSW 32 Some other living arrangement 3 VIC 26 STUDY STATUS Attending high school 3 TAS 3 Studying full time at TAFE/ college 8 QLD 21 Studying full time at university 37 SA 8 Studying part time at TAFE/ college 7 WA 11 Studying part time at university 6 REGION Metro 71 Not studying at the moment 36 Rural 29 WORK STATUS Working in a full time job Working in casual or part time job 31 45 INCOME Under $15,000 40 $15,000 - $29,999 26 Not working at the moment 25 $30,000 - $50,000 24 More than $50,000 10

BASE: WEIGHTED 18-24 YR OLDS ONLY SIG LOWER THAN 2006 SIG HIGHER THAN 2006 *NOTE, SLIGHT CHANGE IN QUESTION WORDING FROM 2006 TO 2009 Three years on: Gen Ys 2006 vs 2009 2006 N=807 % 2009 N=807 % 2006 N=807 % 2009 N=807 % ASPIRATIONS Buy a big ticket item 62 63 BUDGET FOR DAY TO DAY 54 74* Go on an OS holiday 67 62 HAD DIFFICULTY PAYING Motor vehicle repairs 28 28 Buy a car 56 60 Mobile phone bill 24 24 Move out of home and rent 55 51 RESOURCE TO PAY UNEXPECTED COSTS Savings 56 64 Pursue further studies 54 49 Parents and pay them back 35 40 Buy a property to move into 48 48 Credit card 29 28 SAVING TO FUND ASPIRATIONS 76 92* Parents and not repay them 24 16 CURRENT DEBT HELP/ HECS 34 34 INFO GAPS Tax 56 48 Credit card debt 32 26 Superannuation 50 46 Personal loan 20 18 Car costs 34 32 No debt 27 28 Credit card repayments 31 23 CONCERNED ABOUT DEBT 43 64*

Gen Y aspirations, now and then Aspirations amongst 18-24 yr olds have remained relatively unchanged from 2006. BASE: WEIGHTED 18-24 YR OLDS ONLY SIG LOWER THAN 2006 SIG HIGHER THAN 2006 2006 N=807 / 2009 N=807 Thinking about your life overall and your aspirations for the next five years or so, which of these are you likely to do in the next five years?