New Bankwest data shows Gen Zs still splurging in June but one expert says they are just cash savvy

Young West Australians have bucked cost-of-living pressures as they splashed the cash in June, but one expert has cautioned not to immediately label Gen Zs as more “relaxed” about their financial situation than other generations. The latest credit and debit card data from Bankwest reveals the total number of Gen Zs transacting was up 2.5 per cent over the year to June, significantly outpacing Millennials (down 8 per cent), Gen X (down 7.4 per cent) and baby boomers (down 7.2 per cent). Gen Zs freer spending habits were not just confined to the number of those transacting or the volume of transactions (up 6 per cent), but young West Australians were also spending more on average than the other generations. The average value of transactions for Gen Z was up 15 per cent, compared to the 7 per cent growth posted by Millennials, and the 5 per cent recorded for both Gen X and baby boomers. But Bankwest Curtin Economics Centre director Alan Duncan said the data does not immediately point to Gen Zs as being “relaxed about financial caution and sobriety” — at least this stage. He also pointed to the term “loud budgeting” — a growing financial trend in which people talk opening about their personal finances — as a possible explanation to the spending habits of the younger cohort. “There are some studies that do point to Gen Zs being more smart, cash savvy and being cash conscious,” Professor Duncan said. “(Gen Zs are) being smart about saving on some non-essential items in order to extend on other items, whether or not they’re essential, and to drop in a lower or no spending month (so that) in other months, they can splash out a bit.” The travel industry has benefited from Gen Z’s cash splash, with the number of customers spending on auto rental up 32 per cent, and airline up 17 per cent year-on-year. Spending by other generations in those sectors posted a decline or were stable. Overall, the number of customers transacting fell 4.5 per cent month-on-month in June, while volume of transactions fell 4 per cent. Total value of transactions grew 6 per cent over the period. Bankwest products and digital services general manager Peter Bouhlas said the data showed the economic environment that was putting pressure on older generations was having “very little” effect on the spending behaviours of younger West Australians. “Western Australians are used to the term ‘two-speed economy’ referring to the higher wages paid to mining workers, but it could easily be used in reference to the pressures currently being felt by Gen Z compared to others,” he said. “Gen Z is the generation most likely to comprise the casualised workforce and is less likely to have the significant financial responsibilities of their older counterparts at this stage in their lives. “We know from the low unemployment rate that businesses are crying out for workers, so that means there is a generation of young Western Australians in high demand for work, with fewer spending obligations.”

New Bankwest data shows Gen Zs still splurging in June but one expert says they are just cash savvy

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