Cash splash all the rage for young West Aussies as older consumers bear brunt of cost crunch: Bankwest
Young West Australians continue to splurge on holidays, cars and at department stores, as the older generation bear the brunt of still-high interest rates and rental pressures.
Fresh figures from Bankwest has highlighted the two-speed economy, with transaction volume growing 6 per cent year-on-year in April for generation Z as it falls 6 per cent for baby boomers.
The bank's monthly analysis crunches the numbers on WA customer credit and debit activity to spot responses to fluctuating economic conditions.
The categories where gen Z — those born between 1997 and 2012 — were splashing cash included car rentals, which posted a 25 per cent jump in the number of customers transacting.
This was followed by airlines (up 18 per cent), electronic retailers (up 13 per cent) and department stores (up 9 per cent). Meanwhile, the number of transacting customers from all other generations declined in these spending categories.
Overall, the number of transacting customers fell 6.5 per cent for both millennials and generation X, and a bigger 8.6 per cent drop for baby boomers. Volume transactions for all three generations posted similar contractions.
Bankwest products general manager Peter Bouhlas said the current economic pressures facing West Australians were affecting different segments of the community in contrasting ways.
'We know housing and rental supply in Western Australia is incredibly tight, with Anglicare WA's recent rental affordability report finding no affordable dwellings in the entire State for some benefit recipients,' he said.
'Those fortunate to have a roof over their head are also facing headwinds, with cost-of-living pressures squeezing family budgets, resulting in people having to prioritise when and where they spend their money.
'The age of gen Z means they're the least likely of all generations to be property owners and the rental squeeze means many might also not be in that market, resulting in a disproportionate discretionary budget.'
Meanwhile, Mr Bouhlas said it saw the impacts of those economic pressures on older generations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
13 hours ago
- West Australian
Editorial: There are simply not enough people to do all the jobs WA's economy needs to fill
It's a staggering list — 62 professions in WA have been experiencing a skills shortage for at least the past four years. The Jobs and Skills Australia figures reflect what businesses for some time have been saying — and what many West Australians have been experiencing: there are simply not enough people to do all the jobs our economy needs doing. WA's underemployment rate — a measure of people who are working but would like more hours — has consistently been among the lowest of all States for several years, despite us having the strongest population growth for the past two years. Premier Roger Cook has rightly been concerned. Having written to Prime Minister Anthony Albanese outlining 10 key priorities for WA, he's urged his Federal counterparts to excuse WA from broad-brush national rules clamping down on international migration, particularly affecting students. Though critics of migration like to blame it for myriad issues, the simple fact of the matter is WA has not experienced the same problems as Eastern States. International education is a $3.6 billion contributor to the State's economy, but some providers are on their knees, with enrolments plunging after visa fees surged. The result for ordinary West Australians? Fewer people doing the jobs we need done, particularly in the hospitality sector, but fewer people studying in WA and potentially staying, adding to the State's rich culture and making valuable contributions. Aged care is another critical sector facing worker shortages, and with an ageing population, demand is set to keep climbing. Australia — particularly WA — does not have enough people working to service its population. As StudyWest chief executive Derryn Belford has told The Sunday Times: 'If we didn't have international students there are whole sectors that would have no workers.' Western Australia desperately needs the Federal Government to exempt it from blanket national rules restricting international student numbers — and more support on migration caps. It's a blatant impediment to our economy, restricting employers and in turn a handbrake on consumers. Yes, the State is experiencing a housing shortage. But it's not been caused by international students. The State Government has pushed the construction of dedicated student housing, particularly in the CBD, and these go some way to help. And for skilled workers, many companies have shown ingenious solutions to accommodating staff — particularly in regional areas. Construction alone expects to need up to 10,000 more workers every year. If our borders are not opened, where are they to come from? Housing Industry Association WA executive director Michael McGowan expects about three-quarters of the new workforce would need to come through apprenticeships. The rest need to be skilled migrants who can start immediately. By carving our State out of a blunt national rule, the Government would prove it actually 'gets' WA and allow our State to keep moving forward.
West Australian
3 days ago
- West Australian
New wardrobe service opens in Karratha for locals doing it tough
A permanent wardrobe service has launched in Karratha, providing free new clothing to people experiencing hardship. Through Anglicare WA's Thread Together initiative, the service allows people to choose clothes that suit their needs and personal style, helping restore a sense of dignity and confidence during challenging times. The initiative is part of a broader rollout across the North West, with mobile wardrobes due to launch in Port Hedland, Broome, and Kununurra. Funded by a $20,000 Horizon Power Community Partnership grant, the program has also received support from Horizon Power volunteers, who assisted with transport and assembly of the wardrobe. Anglicare WA chief executive Mark Glasson said while the service had been growing in demand and delivery in Perth, the partnership would allow it to expand into the Pilbara and Kimberley, supporting more West Australians doing it tough. 'More people than ever before are going without suitable clothes, prescription medicines and other essential items, as they have no income left after paying for accommodation, bills and food,' he said. 'An increasing number of women and children have also needed the support of services like Thread Together to start over after escaping family and domestic violence. 'The housing crisis and cost-of-living continues to affect people right across the State, but we know these issues are exacerbated in WA's regions, particularly in the Pilbara and Kimberley. 'People in need deserve the dignity and choice of new clothing, without judgment.' Referrals for the program can be made through a range of local community and social services, including Anglicare WA and headspace.
Perth Now
5 days ago
- Perth Now
‘TOTAL SHOCK': Colleagues celebrate massive Lotto win
It took perseverance, patience and dedication — and it paid off big time for a group of workers in Northam. The 28 colleagues had been playing Saturday Lotto together for more than 20 years, each putting $5 weekly into a kitty to buy system tickets. They finally hit the jackpot when they won a staggering $1.6 million on April 12 — but didn't realise they had won until recently when they checked their ticket. 'I was in total shock,' the syndicate organiser said after checking the ticket at Northam Central Newsagency. 'We've had a few small wins over the years, including a division two win, but you never expect a division one win to actually happen.' It means each worker takes home $58,000, with holidays, renovations and paying down mortgages among the many plans. Northam Central Newsagency owner Nicki Malinowski said a big win always created hustle and bustle in the Wheatbelt town. 'Once word gets out that there's a division one win in town, everybody gets excited,' she said. 'Our last division one win was back in August, so it's great to have another one so soon.' The next opportunity for West Australians to take home a major prize is in Tuesday night's $70 million OZ Lotto jackpot. 5, 45, 23, 27, 7 and 9 Supps: 36, 13
