'Gen Z' make good broker customers

Research carried out into the behaviour of 2,000 'Generation Z' teenagers (aged between 12 and 18) by credit bureau Veda Advantage and teen researcher Habbo found they have strong convictions about paying bills on time, and 'do not like owing people money at all'- even if it's to their parents.  

This generation of teenagers are also responsible savers, with more than half (54%) using their bank accounts for saving, rather than for general spending, the research found.

Nearly one in five (19%) said they were saving specifically for a house, while a third (32%) said they were saving for a car.

They also appear to be good at managing their spending with 67% of teens saying they do not currently owe anyone money, while 64% say they have never missed a mobile phone repayment.

However, they may seek the advice of a mortgage broker further down the track with the research revealing that more financial education is required to teach teenagers about their financial responsibilities and how to manage their personal credit file. 

Furthermore, the majority (58%) of teenagers are unaware what a credit file is, and more than half (52%) say they have not had a conversation with their parents about managing money. 

Earlier research carried out by Veda Advantage found  that in comparison to Gen Z, Gen Y (those currently aged 19 to 30 years) is more focused on spending that is financed via credit rather than savings. 

Generation Y are responsible for more than one-third (37%) of Australian's total consumer credit defaults.

Kelvin Kirk, head of marketing and communications at Veda Advantage said while Gen Z currently  look like they are responsible savers, some of their attitudes may also have been affected by the current financial climate.  He also said their lack of financial education and knowledge about credit files was concerning.