While last week's federal budget offered some help for first-home buyers, for many millennials the dream of owning a home won't be a reality anytime soon.

And with record low interest rates keeping savings low, and a general lack of trust in the share market, what should millennials actually do with their hard-earned cash?

We asked some of the experts.

But first, the boring bit. This is not financial advice. You should consider your individual financial circumstances, or engage a qualified expert to help you do so, before making investment decisions.

Build an emergency fund

Yes. You won't get the best interest rates ever known to man, but putting money away for a rainy day will not do you any harm.

Most financial experts say any emergency fund should be roughly three to six months' worth of living expenses.

Data released by finder.com.au in February found one in two Australians feared that they couldn't afford for something to go wrong — like a medical emergency — and a household financial comfort report by ME Bank from December 2016 revealed almost half of the households surveyed were least comfortable with their ability to cope with a financial emergency, investments and cash savings.

The ABC's David Taylor said not saving enough was one of Gen Y's biggest mistakes.

"You never know what's going to happen to the economy or asset markets," Taylor said.

"It's never a good idea to just spend what you earn.

"That includes spending on smashed avo! The occasional brunch is perfectly fine though."

Phew.

Once you have savings, look at the other ways you can build wealth

"There are a few asset classes for Gen Ys to choose from," Taylor said.

"Fixed interest (saving), property and shares.

"The property and share markets are both sitting around all-times highs.

"For many, then, the ol' term deposit looks like the best bet. Sad then, really, considering interest rates are around record lows.

"Millennials should increase their savings first and foremost, then work out whether they can afford to one day buy a house.

"If they can't, they need to find an alternative way to build wealth."

Look at the share market, but do your research

"The evidence suggests many millennials are choosing the stock market over working up a deposit for a house," Taylor said.

"But, if you don't know what you're buying, this could be a risky move.

"This is dangerous, especially if you're not familiar with how to invest in the share market.

"Then again, it is prudent to be building your wealth if you're not invested in bricks and mortar."

Laura Higgins is ASIC's acting senior executive leader of financial capability, so she looks after money advice website Money Smart. She says shares are a popular form of investing.

"Many Australians invest in shares and the benefits of investing in shares are the potential capital gains from owning an asset that you can grow in value over time as well as the potential income from dividends," she said.

"So you may also be able to benefit from lower tax rates from long-term capital gains.

"However, like any investment there are risks, so share prices can fall just as easily as they can rise.

"If the company goes broke you are the last in line to be paid so you may not get your money back."

She said ASIC's Investor Toolkit could help you make decisions about whether you should invest.

"Then you can explore how to invest in detail and that is the point you may chose to seek professional advice as to next steps," she said.

So why aren't more young people investing in shares?

"Because they don't understand the market and are afraid it may 'crash' at some point," Taylor said.

"It's happened before and it can happen again.

"Properly valuing companies is also a very complex task, and is reserved for the professionals. Properly investing in stocks and shares involves a lot of patience and a very long time horizon.

"Many choose to live off the income of dividends after many decades of buying shares.

"If you're after a quick capital gain, it's a little more straight-forward. But remember you're also taxed on any capital gain, so your wins need to be big, and that's hard to achieve."

Top up your superannuation

Ms Higgins also says there are big gains to be made from topping up your super balance.

"If a 40-year-old puts five per cent of their salary to super until they retire at 65, they can grow their super by close to $100,000," she said.

"If we … assume they have $80,000 income and $100,000 in super they would end up with a super more like $400,000 than $300,000.

"I think that it's very difficult for young people to think of themselves retiring … they might be thinking about managing their money day-to-day and short- to medium-term financial planning, but it's really important we think about that retirement plan a little bit more (and) investment at that age makes a big difference."

As of July 1 this year you'll be able to salary sacrifice $25,000 in concessional contributions to your superannuation.

You can contribute more than that out of your taxed income, which are called non-concessional contributions.

Get rid of bad debt

Australia's household debt problems are worse than ever.

Got a credit card that you're just paying the interest off?

Pay it off!

And take a look at all of the debts and debits you have coming out of your account each month eating up your money to decide what needs to be cancelled, and what needs to be paid in full.

Think about insurance

Earlier this year it was revealed many young Australians had "junk" life and disability policies through their superannuation funds.

The catch was that many of the insurance policies didn't cover casual workers, which equates to around a quarter of the Australian workforce.

And 40 per cent of that casual workforce is under 25.

Ms Higgins said it was important to think about insurance and what type of cover would actually suit your needs.

"If you are thinking about insurance, imagine what your family looks like if you or your partner died or got seriously ill or couldn't work, would you be able to survive financially?" she said.

"These are the questions people need to ask themselves.

"So insurance can provide the money for you or that your family needs in this critical time."

She said there were a few options to consider, including:

Death cover

Death cover Total permanent disability cover

Total permanent disability cover Trauma cover

Trauma cover Income protection cover

"Getting the right level of cover … it's an important part of planning your finances and can give you peace of mind," Ms Higgins said.

"It's important to get professional advice on what you as an individual need, but you can also go to the ASIC Money Smart website to [see] … what's right for you and your family."

So, where are we going wrong?

"I think that young people often live in the here and now — and who can blame them? But the really important thing for young people to do is to plan, plan for the future," Ms Higgins said.

"It's not necessarily about making big changes, I would be encouraging people to start good financial habits.

"Start small by setting savings goals that are realistic, perhaps savings for trip with friends or tickets to sporting events, but setting goals and doing their best to achieve them."

Being fit as well as financially fit is also a must

"Well I think an investment in yourself is arguably the best you'll ever make. If you want to reduce your future health costs then staying fit and well is a good idea, but that may be easier said than done," Ms Higgins said.

"An obvious example is smoking … it's obviously bad for you … not only will your budget be better right now, but you may reduce the need for medical treatments in the future.

"So taking care of yourself will have a positive impact on your financial wellbeing."

That could also mean investing in good dental habits and care.

According to the National Oral Health Alliance, 30 per cent of Australians go without regular dental care due to the cost.

Oral decay has been called a "time bomb" for older Australians, so making the investment into your oral health now will pay dividends later.