The Australian Taxation Office has a website where super fund returns can be compared. It can also be beneficial to consolidate funds, if you have more than one, as you’ll save on paying two sets of fees, Manwaring says.

Young people should invest their super money in growth options such as stocks, say financial planners.Credit:

People between the ages of 20 and 30 should also invest in one of their fund’s investment options that has a high exposure to ‘growth’ assets, such as equities. They will be working and contributing to the super for another 30 or 40 years, which means they will have plenty of time to ride out the ups and downs of the stock market.

Choosing a “growth” option would produce higher investment returns — and more money in retirement — over the long term than if they were invested in one of the more conservative options in their fund, says -he.

Switching options can be as easy as phoning your superfund.

Buy now, pay later

Buy Now, Pay Later (BNPL) services are proving popular with young people, many of whom have never had a credit card or have given up on them.

BNPL’s business models differ, but they all allow purchases to be made immediately, with money being refunded to the supplier, in most cases, in four equal instalments.

Most of these companies derive revenue from merchant fees and fees charged to consumers who miss a refund.

Brady is “not a fan” of the BNPL. Anyone who uses them should ask themselves why they’re using them, she says. “They can encourage instant gratification.”

Use your cash savings for any purchase and, if you don’t have the cash, save for it, says Brady.


Buying cryptocurrency isn’t a way to get rich overnight because the risks are too great, says Travis Schindler, partner and advisor at Hewison Private Wealth.

Crypto is a risky investment, yields no income, and whether it has any real value in society is yet to be proven, the 31-year-old claims.

“As long as you have a steady income and the ability to save a reserve of cash, investment volatility creates [buying] Opportunities.’

Jessica Brady, Financial Advisor at Fox and Hare

The only way to build wealth is to have good, healthy financial habits, Schindler says.

“If someone is really willing [on crypto]they could dip their toes into the market with a small amount of money that they are willing to lose,” he says.

Ignore noise

Many young people have not experienced market cycles.

Interest rates have been low for over a decade and young people have never seen a period of rising rates.

Rising property values ​​have many young buyers wondering if they’ll ever own a roof over their heads, but property prices – at least in Sydney and Melbourne – are falling.

The cycles are even clearer in the stock markets. Australia’s stock market fell 35% in a matter of weeks amid the pandemic-induced selloffs at the start of 2020, only to recoup nearly all of those losses by the end of this year.


Anyone trying to time the swings in the market would likely be on the losing end, Brady says.

People often panic when markets fall. “They think the sky is falling on us,” she says.

“As long as you have a stable income and the ability to save money, investment volatility creates [buying] opportunities for long-term investors,” says Brady.

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. They should always seek professional advice that takes their personal circumstances into account before making financial decisions.