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Gen Z set to save in 2025

25 January 2025

 

Westpac has revealed that Gen Z (ages 14 to 29) are likely to be the most successful group in achieving their financial goals in 2025 – with new research showing that younger Australians are the most likely to set New Year's savings resolutions1 and successfully meet those savings goals2.

 

According to previous New Year's resolutions, the most common goals for Gen Z are financial (41%), followed by fitness (33%), career (32%), weight loss (31%), travel (29%), and personal growth (21%), like learning a language or reading more.

 

Among Westpac customers who have established a savings goal in the app, the majority (65%) are from Gen Z. Additionally, nearly two in five (44%) Westpac customers under the age of 25 use personal finance tools such as a Cashflow tracker and Bills Calendar available in their banking app3.

 

Mandy Rutherford, Westpac’s Managing Director of Cash and Transactional Banking, highlighted a growing emphasis on saving among younger customers.

 

“There can be tension in your twenties between prioritising long-term financial goals, such as owning a home or retiring early, and the desire to spend money socialising with friends and traveling – especially when you may not have major work or family commitments.

 

“Despite this challenge, it is encouraging to see many young Australians setting and sticking to their financial goals. While a considerable number are saving for holidays, a large proportion are also saving for a home or a rainy day, which shows they are planning for their future.

 

"Gen Zs setting financial goals are determining how much money they need to put away to meet them4, with the majority having increased their savings last year5,” said Rutherford.

 

Westpac offers several features within its app to assist users in setting and achieving savings goals, including the new Shared Goals functionality which allows two individuals to save toward the same goal together without needing to open a joint account.

 

“Sticking to a savings goal can be challenging, especially when faced with financial pressures such as changing careers or moving out of the family home, which is common in your twenties. Saving with someone can help maintain motivation and achieve a joint goal sooner, whether it’s for a holiday with a friend or new furniture with a flatmate,” said Rutherford.

 

Nearly half (46%) of Gen Z are already saving with someone, with the most common savings partner being a significant other (31%), followed by a parent (10%), a sibling (9%), and a friend (5%).

 

“While many young Australians choose to save together, some don’t, preferring to keep their financial situations separate. Shared Goals offers a solution, allowing users to save together towards a common goal while keeping their savings separate, providing the benefits of a savings buddy without some of the risks associated with pooling money,” said Rutherford.

 

Mandy Rutherford's top tips for setting and sticking to savings goals

 

  • Name the goal: It’s easier to save for something specific than to save without a purpose. Clearly naming your savings goals—like booking a holiday or buying a home—can help you determine how much you need to save and keep you motivated. Westpac app’s Savings Goals feature allows customers with a Life or Bump account to categorise their savings into up to six different goals, and Shared Goals enables customers to save with others.

 

  • Create a budget: Mapping out your income and expenses can help you understand how much you can realistically save and set deadlines for your goals. Establishing a fortnightly or monthly savings amount that you can consistently stick to reduces the likelihood of dipping into your savings for everyday expenses. Westpac’s Budget Planning tool helps you run the sums on your incomings and outgoings.

 

  • Get savvy with savings: Consider placing your savings in a high-interest savings account to make your savings work harder for you. Automating your savings contributions to coincide with your payday ensures that you won’t miss out on saving and are less likely to spend those funds.

 

ENDS

 

About Westpac research

Statistics referred to in this document were taken from research that was commissioned by Westpac and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 2,009 Australians 18+ with surveys distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between Friday 4th of October 2024 and Monday 14th of October 2024. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.

 

1Gen Z 41% cf. Millennials 37%, Gen X 25%, Baby Boomers 12%

2Gen Z 42% cf. Millennials 40%, Gen X 31%, Baby Boomers 18%

344% of eligible Westpac customers aged between 13 and 24 years old have used a personal finance management tool within their Westpac app between September and November 2024.

4Gen Z 57% cf. Millennials 52%, Gen X 43%, Baby Boomers 38%

5Gen Z 68% cf. Millennials 54%, Gen X 41%, Baby Boomers 40%

 

Media Contact:

media@westpac.com.au