A new survey has found almost half of Aussie parents now fear their children will never afford to buy a home, with many bracing for the need to step in to help them in future.
While the real estate boom has made many homeowners wealthier than ever on paper, the survey of parents of teenagers aged 13-18 – commissioned ahead of the annual Suncorp ESSI Money Challenge – found 47 per cent believe it’s already impossible for their children to ever buy a home.
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Commissioned by the Financial Basics Foundation and Suncorp, the survey found almost a third of parents (32 per cent) believed that it wouldn’t be until later in life that their children would be able to afford property – much later than it was for earlier generations.
It also found that 5 per cent of the 1,000 parents surveyed were bracing to have to help their child buy a property when the time came.
Half of the parents surveyed had discussed rising interest rates with their teenagers and the impact it had on mortgage repayments and family finances, while the other half said their children were oblivious to what was happening.
Suncorp Bank executive general manager for everyday banking, Nick Fernando said the current economic climate made teaching young people financial decision-making skills all the more important.
Financial Basics Foundation CEO Katrina Samios said it was important to get started on financial literary early given what lay ahead for the children of today.
“Many young people leave school and start working with no real understanding about how to handle the money they are being paid,” she said.
“The Financial Basics Foundation provides free financial literacy teaching resources to Australian secondary schools and we have been calling for some time now for financial literacy to be approached in a more systematic and consistent way within schools.”
More than 26,000 students have participated in the Suncorp ESSI Money Challenge since it began in 2017.