They’ve been maligned for focusing on travel, fun and fashion ahead of serious savings, but a new study says Millennials could be the nation’s best savers.

Millennials are mixing savings with their smashed avocado and busting the popular myth that they are financially irresponsible.

New research suggests that Australians aged in their 20s are saving more of their cash — outside of superannuation — than any other age group, and a house deposit remains their top target.

Almost two thirds of Australians born in the 1990s started saving as soon as they began working, and more than half are saving up to 20 per cent of their income, according to PureProfile research commissioned by Millennials-focused investment company Spaceship.

Almost one in five are saving 30 to 40 per cent of their income.

Spaceship chairman Andrew Moore said the image of Millennials choosing smashed avocado over savings had stuck in recent years but was not warranted.

“Young people maybe don’t follow the more traditional path of university, job and family the way they used to,” he said.

“That has given them more time to travel, and it’s true that young people do spend more on travel than previous generations.

“But it’s also true that young people spend less on food and alcohol, and more on housing. That sounds responsible to me.”

“They’re on top of the neobanks and the savings accounts that neobanks bring with them and they’re increasingly using micro-investing apps and other modern products to stash away their money.”

The survey of more than 1000 people of all ages found that a house deposit was the most popular savings target for people in their 20s, ahead of buying a car and travel.

“Younger people have seen their parents achieve the great Australian dream of home ownership and want in,” Mr Moore said.

Omniwealth senior financial planner Andrew Zbik said he had found many of the people who criticised Millennials’ spending choices might have benefited from free university tuition.

“A lot of Millennials are leaving university with HECS-HELP debts and are seeing up to 8 per cent go to their debt repayment,” he said.

“On top of that they are saving money, so when you put that into context it’s quite impressive.”

Mr Zbik said Millennials were aware of the need to be disciplined savers, and despite housing affordability issues knew they had to “start somewhere”.

He has noticed more clients are accessing the government’s First Home Super Saver Scheme, which allows up to $30,000 to be contributed into a low-tax environment.

“They are of the mindset that there’s going to be no age pension, and it’s up to them (to save),” Mr Zbik said.

“Superannuation is not a massive part of their thinking because it’s so far away, but as a generation they are more willing to rent and invest.”

HOW TO MAXIMISE SAVINGS

• Prioritise it, by sending money into savings every payday.
• Shop around for a higher interest rate, even if it’s just 2 per cent rather than 1.5 per cent. Everything counts.
• Keep savings “out of sight, out of mind” and don’t carry the account’s card.
• Find accounts that round up small purchases to the nearest dollar and divert the money to savings.