Gen Y and Their Financial Planning for Housing Purchase: A Case Study of New Graduates from Chulalongkorn University GEN Y AND THEIR FINANCIAL PLANNING FOR HOUSING PURCHASE: A CASE STUDY OF NEW GRADUATES FROM CHULALONGKORN UNIVERSITY

Abstract

 One of the Generation Y groups, new graduates started working after graduation, and are yet to have their own houses.  Financial planning is needed for purchasing a house. This study aims to explore the new graduates’ financial planning for future housing purchase, using data collected from a set of questionnaires given to 400 new graduates of Chulalongkorn University in the year 2014.  The findings show that most of new graduates are 23 year old and single. They live in the Bangkok Metropolitan area and work in private companies, with the average monthly salary of 25,002 baht.  82% of new graduates are interested to purchase his or her own house instead of a car and 65% of them have already initial ideas about house purchasing planning. 54% of new graduates have already started saving while 75% have saving accounts. 25.3% of savings groups plan to purchase a house – within the first five years of their professional life – condos located along the public transportation lines of the Bangkok Mass Transit System (BTS) and Metropolitan Rapid Transit (MRT), at the average price of 2-3 million baht.  As new graduates think that overspending is the major impediment to savings, they think that both the public and the private sectors should set the enabling strategy that promotes savings.  This study provides useful information to consider and design housing financial tools for encouraging members of the Generation Y in housing financial planning.