Zoomers keen to make their money work harder

The world of money has changed tremendously over the years. We barely use cash to make payments, the online environment can be a minefield of scams, and with the availability of new payment options like buy now pay later, it can seem like there’s no longer any point saving for purchases.

Long story short, there are plenty of pitfalls for the unwary.

So, I was pleased to see the results of a survey by investment watchdog ASIC that show three out of five people aged 15-21 want to learn more about investing, and 54% want to make the most of their money.

In response, ASIC has launched a new resource called Get Moneysmart. It’s designed to make it easier for young people to manage their money and build their understanding of key money concepts and behaviours.

Gen Zs – the so-called ‘zoomers’, already face complex financial decisions. They shop online, use debit cards and face milestones such as moving out of home, maybe buying a first car, and taking out financial products like credit cards or personal loans. Even starting a part-time job can bring solid decisions like which super fund to join.

While parents can help their kids learn a lot along the way to adulthood, our rapidly evolving financial world has made it harder for many mums and dads to stay up to date with some of the changes.

That’s why it’s great to see resources like Get Moneysmart become available. Under-21s are very much at home with the online environment, and the series of videos, tools and calculators available through the new site can help young people with everyday money decisions. It offers practical tips on managing an income, how to track spending and planning for the future.

ASIC’s research highlights just how much Zoomers need these sorts of tools. Sadly, one in five (22%) Australians aged 15-21 say they have already experienced a situation where they felt ripped off or taken advantage of financially, or didn’t understand what something would cost them until it was too late. One in two say they are often stressed about money.

Yet one of the best assets young people have is time – time to benefit from compounding returns on savings, investments and their super. And with the right information, young people can make a money plan for the future, feel more in control of their financial lives and identify common pitfalls and unnecessary risks.

The Get Moneysmart toolkit can be found by heading to the MoneySmart website. It contains information that can be picked up on the go, and it’s super user-friendly. Definitely worth a look!

Paul Clitheroe is Chairman of InvestSMART, Chair of the Ecstra Foundation and chief commentator for Money Magazine.

If you or a family member want to start investing but feel you could use a bit of a helping hand, InvestSMART's Bootcamp is a great place to start. The four week online course, which includes live webinars provides you with a great foundation to start investing. Click here to learn more.