Australians under the age of 30 are spending way before their means, a 2016 report by Veda Advantage (now acquired by Equifax) found.
The credit reporting agency found the main reason for overspending was due to the fact that millennials are increasingly more comfortable with credit than the previous generation.
In a similar report, JPMorgan defined millennials as being born between 1981 and 1997, while non-millennials are those born prior to 1981.
It was found that millennials spend a lot more on “experiences” compared to non-millennials.
For example, 16% of overall credit spending was spent on dining compared to 11% for non-millennials, and 12% on entertainment compared to 10% for non-millennials.
Overall, 34% of millennials’ total credit spending was on experience items and services compared to 28% for non-millennials.
This means less money is being put aside for saving or buying assets such as real estate.