Generation Y’S Savings for House Purchasing: A Case Study of Financial White-Collar Employees in Kasikorn Bank HQ, Phaholyothin Building

Abstract

Generation Y is one of the largest consumer groups, accounted for 25% of consumer spending. While most of GEN Y still do not have homeownerships, they have a strong capability to earn more income to purchase housing in the future. The objectives of this study were to explore the financial planning for house purchasing, including the characteristics of Generation Y working in a financial organization. The data collection was conducted through questionnaires from 148 samples working in  the financial department of Kasikorn Bank (Head Office), Phaholyothin building, Bangkok.

The study found that 1) the average age of the sample is between 22-39 years with the monthly income of 30,000 baht, followed by 30,000-50,000 baht and more than 50,000 baht.  In addition, most have extra income apart from the mothly salary. 2) As much as 79 percent of the GEN Y samples have an idea of buying a house as a type of savings. 74% wants to buy for their own residence, while the rest thought of purchasing for investment and speculation. However, those who want a single house are usually those who travel by private car (48%), while those who want to buy a condominium are those using the BTS (19%). 3) The percentage of Generation Y people planning to buy a house within 5 years with housing savings before purchasing is 76 percent, less than or equal to 30 percent of monthly income, and if the additional income is less than 5-10 percent, people may not be able to buy housing in 5 years.

The research finding indicates that Generation Y who work in financial sector start to plan on savings for housing purchase. However, if they want to buy a house that they expect to have, more savings or longer-term savings is required. This study will give some benefits to entrepreneurs that will issue products that meet the needs of Generation Y, including relevant agencies that will use this information to plan to support the savings of Generation Y in the present and future.