Prioritizing Homes over Children can cause Significant Societal Changes
A recent RAMS Home Loans survey on clients aged between 25 and 45 years old showed that for the majority, purchasing a home is considered as a prioritised achievement over having children. This indicates a shift in societal norms and beliefs that presents the transformation of a family-centred society into a financially motivated culture.
This means that personal life choices of Australians are delayed in the hopes of fulfilling individual ideals, such as market shares, properties, established careers and a secure savings account. Melos Sulicich, the Chief Executive Officer of RAMS, implies that lenders are currently exploiting this trend by participating actively in providing the chance to individuals of having or availing of properties which are currently considered as the most important event in their lives.
The birth rate of Australia in the year 2000 was up to 13.08 births per 1,000 individuals; a decrease to 12.33 births per 1,000 individuals was recorded by the end of 2010. This high birth rate is attributed to two factors:
(1) The increased entry rate of refugees and immigrants, making Asian-born Australians increase in number compared to European-born Australians
(2) The Federal Tax Rebate Scheme called the “Baby Bonus” that offers cash incentives to couples who produce children.
Today, the average household of Australia is generally composed of a mother above the age of 28, a father greater than 30 years old and two to three children. The marriage rate is at 6.9, and 28% from the overall total of couples have children.
These statistics show that financial stability, as represented by personal financial products, properties and job security, are requirements that need to be achieved long before marriages and children are planned. Consequently, planning a family is also limited by these priorities; more resources would mean more children and less resources would indicate a lower number of children. Additionally, due to the opportunities presented to women, they are now more empowered in achieving professional recognition over domestic and family life.
This trend can forecast that an ageing Australian population would be experienced in the future; where, similar to Japan, a large gap between generations would lead to economic, social and labour problems.
Another finding that this trend shows is that Australians currently doubt their financial capabilities – that these would be damaged by the presence of children and the accompanying responsibilities. Additionally, that debt is now considered as a social norm upon which personal decisions are made.
One goal of personal financial management is to be able to save and at the same time live a fulfilling and natural life. Australia’s current social landscape shows a society that lives for the money. Individuals who can handle their financial assets and manage personal debts effectively need not be limited by the size of property or amount of mortgage being paid. All that is required to be able to live a fruitful and natural life without delaying the joys of parenthood is the tenacity to aim for a debt-free, savings-centred lifestyle.
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- Prioritizing Homes over Children can cause Significant Societal Changes
- How Children Learn About Money
- How Dream Homes Turn into Nightmares
- Location and Security Preferred Over House Size in Home Buying
- New homes in Australia are shrinking in size
- Income to Property Price Ratio Increases
- NSW Budget Better for Newly Constructed Homes
- New Homes Demand from Upgraders and Investors
- First Home Buyers in Danger of ‘Mortgage Stress’
- Australian First Mortgage Complete Option 5 Yr Fixed
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