Young Australians are increasingly concerned about the rising cost of living, with many expressing worries about their current financial situation and future prospects. This concern is driven by factors such as increasing interest rates, soaring house prices, and inflation outpacing wage growth. These economic conditions are impacting the perceived realism of achieving milestones like home ownership for younger generations.
Young Australians are increasingly concerned about the rising cost of living, with many expressing worries about their current financial situation and future prospects.
Financial Concerns Among Youth
Surveys conducted in late 2025 highlight widespread financial anxiety among young people:
- UNICEF Australia Report: A survey of over 2,000 12- to 17-year-olds found that 55% had mixed or unsure feelings about the future, with financial security and housing identified as major concerns.
- Mission Australia's Youth Survey: This survey of over 17,000 14- to 19-year-olds indicated that the cost of living was the most pressing issue, with one in five reporting money-related stress.
- University Reports: Studies from Curtin University and Monash University in 2025 also identified financial difficulties as a top concern for young Australians.
Calls for Enhanced Financial Literacy
A contributing factor to financial anxiety is the perceived lack of financial discussion during childhood, both at home and in educational settings. There are renewed calls for financial literacy to become a mandatory component of the school curriculum, especially given the complexities of modern financial systems, including buy-now-pay-later schemes, scams, and social media marketing.
Katrina Samios, CEO of the Financial Basics Foundation, stated that young people are expected to make complex financial decisions upon leaving school without adequate preparation.
She advocates for financial discussions to be normalized at home and school, stressing the importance of building a "financial toolkit" early to foster resilience against market fluctuations and cost-of-living pressures.
Samios suggests that personal finance education should be a standalone, comprehensive topic in the Australian curriculum. This education should extend beyond numerical concepts to include financial behavior, habits like saving and investing, and critical analysis of financial messaging from social media influencers to mitigate "fear of missing out" (FOMO).
Saving Habits and Financial Outlook
Despite financial pressures, data from NAB indicates that Generation Z (18-29 years old) are highly committed savers. Approximately 89% of young women and 85% of young men in this age group are actively saving money. Some young individuals reported developing a strong saving mindset due to financially open households. However, not all young people are able to save, with some stating they do not earn enough to put money aside.
For those who have left school, developing basic financial habits such as tracking income and spending, making small savings, and exploring long-term investment strategies can be initiated at any age.
Despite current challenges, some young people maintain an optimistic outlook, advising others to focus on smart financial decisions and planning rather than stress.