The "I Deserve it" Factor

Whether it's a new dress or simply ordering dessert after dinner, everyone deserves the odd treat. However, Emily Chantiri, author of The Savvy Girl's Money Book (Murdoch Books, $29.95), warns that for women in their 20s and 30s, constantly overindulging can be a common - and costly - trap. "Young people work really, really hard these days," says Chantiri. That means when they're not working, "they think they deserve to have some fun." This attitude, plus the feeling that, by our 20s, we've somehow outgrown having to live to a tight budget, can be a big money-drainer.

Money Multiplier: "Spending expands to match income, so if you only have one bank account, you'll spend it all, whether you earn $20k or $60k," says Chantiri. So set up a direct debit to funnel a 10th of your salary into a savings account.

Generation Generosity

You know the scenario: you've spent the evening eating, drinking and having a great time at one of your favourite restaurants and now it's time to pay the bill. Your share is $42, but you only have a $50 note. So you leave it on the table - after all, you don't want to look cheap and you earn a good wage. What's the harm? Plenty, cautions Chantiri, who says this is a common trait among women who suddenly find themselves earning "decent" salaries, which mean they can afford to be generous. But Chantiri warns that being too giving, or trying to keep up with high-earning friends, is a costly trap.

Money Multiplier: "Try starting a kitty at the beginning of the night," suggests Chantiri, who advises that each person contributes, say, $20. "If anyone wants to spend more, they have to pay for it themselves."

The Lucky Ones

Having never experienced a serious recession, Generation Y hasn't had to hone its budgeting skills, says Commonwealth Bank financial planner Marissa Yates. We also rely too heavily on credit, with the average Australian owing $3200 in credit card debt, she states. And because we're buying homes and having children later than previous generations, there's less incentive to start saving early. So it's no surprise that under 35s are being labelled "Generation Debt".

Money Multiplier: Hoping to own your own home by the time you have children? Then start budgeting now, advises Yates: "It's never too late - or too early - to see a financial planner." Visit www.fpa.asn.au for more details.