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.
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