Back to the future: 1970s video sparks time-travelling debate on financial struggles of today's youth

The debate between generations about who had it tougher has been a long-standing one, often with older Australians reminiscing about the ‘good old days’ when life was simpler and, supposedly, more affordable.

However, a startling video from the 1970s has surfaced, challenging the narrative that young people today have it easier than their predecessors.


The footage, filmed in 1977, provided a stark comparison of living expenses and government support between then and now.

It featured a student on the Tertiary Education Assistance Scheme (TEAS)—a government support payment of the era—who managed to cover her weekly expenses with $43.

She allocated $14 for rent, $8 for food, and approximately $10 for bills, utilities, and transport. After expenses, she was left with only $8 to $10 per week, which sometimes had to cover university supplies like books or stationery.

Fast forward to today, and the picture is quite different for young Australians.


photo (11).jpg
A 1977 video showcased the stark financial contrasts between students then and now, revealing substantially lower costs for rent, food, and university fees. Credits: Tiktok / ABC News Australia


When adjusted for inflation, the TEAS payment the student received would be equivalent to $284.74 per week in today's money.

Her rent was a mere $92.71, food cost $53, and bills, including utilities and transport, came to $66.22, leaving her with $53 to $66 for other expenses or savings.

In contrast, the current AUSTUDY payment—which replaced the TEAS system in 1987—for a single student with no children is $319.50 per week.

If today's payment rate were applied in 1977, it would amount to nearly $48 per week. This might seem like an increase but doesn't stretch nearly as far given the soaring cost of living.


The level of government assistance appears to have remained consistent for nearly half a century; however, virtually everything else has undergone significant changes.

The median weekly rent in Australia now stands at a staggering $601, according to CoreLogic data.

Even with housemates to share the cost, it's a far cry from the $92.71 weekly rent of the 1970s.

According to Canstar Blue, groceries have also skyrocketed, with households spending around $160 per week—triple what the student from the video paid after adjusting for inflation.

Some individuals find groceries so costly that they resort to skipping meals or scavenging through dumpsters to make ends meet.

Perhaps the most significant change is the cost of education.

The video was captured from 1974 to 1989 when university education in Australia was free. Today, students grapple with HECS-HELP debts averaging around $26,000, with some facing loans exceeding $100,000—a debt many fear they'll never repay.

When asked about the impact of the reintroduction of university fees at the time, one student in 1977 responded, ‘I'd totally be at the mercy of the Department of Education…I couldn't do it myself.’


The reaction to the video on social media was one of disbelief and frustration. Some wished to have been born in the 1970s, longing for an era when they could afford their necessities, particularly with rent posing a significant challenge in their budgeting.

‘Amazing to see how far our quality of life has fallen,’ one commenter remarked.

‘I get $350 a week as a student and spend $200 on rent (in a house of 4 people), and groceries for one is at least $100 now. So I spent 85 per cent of my allowance compared to her $22/43 or 51 per cent, AND I have to pay $5,000 a semester for the privilege,’ another shared.

‘I'm sorry, did she say $14 on rent and then $8 on food…far out can we please please bring this back please,’ a third chimed.

Others argued that this should settle the debate once and for all regarding which generation faced greater challenges.

‘Their generation will continue to tell us they had it just as hard, if not harder, and that we are just lazy,’ one lamented.

‘Crazy to think this generation grew up to tell the ones that followed that they had it the hardest,’ another added.


The ongoing argument persists regarding which generation faced more challenges, as each era had its own set of difficulties.

The video was captured during a period of peak consumer price index (CPI) levels—which measures household inflation—spanning from the 1950s to the present day.

During the 1970s, the average annual CPI stood at 10.5 per cent, while recent data indicated a CPI of 3.6 per cent in the twelve months leading up to April 2024.

Regarding housing, Baby Boomers and Gen Xers often recall the 1990s, when interest rates soared to as high as 17 per cent.

However, in contrast, Gen Z and Millennials currently seeking to enter the property market in Sydney must earn a minimum of $293,578 annually to afford a home without experiencing mortgage stress.


Saranga Sudarshan, an analyst at Finder, outlined that younger Australians today experience significantly lower wages than older generations.

‘When incomes are adjusted for inflation, we find that Millennials and Gen Z have the worst inflation-adjusted average salaries—$91,493 and $97,156, respectively,’ he explained.

‘In today’s dollars, Baby Boomers and Gen X enjoyed incomes of $214,002 and $112,690, respectively. This is why, when adjusted for inflation, Gen Z, Millennials and Gen X are all paying 18 times their annual salary for a mortgage, compared to only seven times for Baby Boomers.’

You can watch the full video from 1977 here:


Source: Tiktok / ABC News Australia

As the discussion around the financial challenges faced by young Australians gains traction, a recent video from the 1970s highlights the stark differences between generations.

This portrayal of the past prompted reflection on the economic landscape today and the strains felt by younger demographics.

Meanwhile, a study delved deeper into the generational divide, shedding light on which groups are bearing the brunt of financial stress.

These insights offer a comprehensive view of the evolving financial pressures faced by various age groups in Australia.
Key Takeaways
  • A video from 1977 highlighted the financial differences experienced by students then compared to today, showing significantly lower expenses for rent, food, and university fees.
  • Government support payments like the TEAS in the past and AUSTUDY today have remained almost the same when adjusted for inflation, while costs of living have increased dramatically.
  • Australians reacted with astonishment to the low living costs in the 1970s, especially regarding free university education and the small portion of income spent on rent and food.
  • Analysis by experts suggested that Millennials and Gen Z have it tougher in terms of inflation-adjusted salaries compared to previous generations, impacting their ability to afford housing and manage expenses without financial stress.
What are your thoughts on this issue? How do you think we can bridge the gap between generations and work towards a fairer future for all Australians? Share your thoughts and experiences in the comments below.
 
  • Like
Reactions: Penny4
Sponsored
Blaming Generations is Pointless,it's Decades of Our Govts working for the Globalists, depriving Our Citizens ,they use a false Constitution from the Whitlam days it's registered as a Business in the States, and steal from Us all .We are such a Wealthy Country with Natural Resources, Australians do not get a Cut of it as Countries like Iceland does, giving their Residents a share of Oil Profits
 
Blaming Generations is Pointless,it's Decades of Our Govts working for the Globalists, depriving Our Citizens ,they use a false Constitution from the Whitlam days it's registered as a Business in the States, and steal from Us all .We are such a Wealthy Country with Natural Resources, Australians do not get a Cut of it as Countries like Iceland does, giving their Residents a share of Oil Profits
I agree. You can't blame any generation, they just made the best of what they had going on at the time.
It's the government of the day that determines how the people live.
That's it plain and simple.
 
I agree. You can't blame any generation, they just made the best of what they had going on at the time.
It's the government of the day that determines how the people live.
That's it plain and simple.
That is true, you just have to do your best with what you've got. We went through 18% interest rates rises and it was hard economically, we knew friends who lost their properties and couldn't afford the repayments as interest rates rose back then. With only one wage coming in and two small children I became very good at cooking at home and taking the kids to free outdoor playgrounds and pools. I don't know how the future generations will cope with it all.
 
It was so much easier back in those days to get your own home.
Anybody who was prepared to save and put the effort in managed to get their own home.
All my friends had their own homes before starting their families.
Today's prices are so ridiculous it's a wonder any young couple can afford to buy. Even an older, smaller renovator is out of reach.
Plenty of reasonably priced homes in country towns,but then you have the problem of work.
.
 
It was so much easier back in those days to get your own home.
Anybody who was prepared to save and put the effort in managed to get their own home.
All my friends had their own homes before starting their families.
Today's prices are so ridiculous it's a wonder any young couple can afford to buy. Even an older, smaller renovator is out of reach.
Plenty of reasonably priced homes in country towns,but then you have the problem of work.
.
I agree: how can the young ones even get into the market with price of homes today, you need a couple working and earning huge salaries to to do that. Full time work is a thing of the past, its mainly part time and casual now. Just to get a rental is hard and very costly. I hope the government can get some sort of house building/employment scheme going so people have somewhere to live. It is possible but can they do it? Yes they can with a bit of determination and proper planning, and the right brains running the operation.
 
You can't compare different periods based solely on money. In 1977 when I finished high school it was a different world to today in so many ways.

The level of infrastructure back then was minimal. Dirt roads were still common, kerb and guttering was a luxury.

Brick homes were uncommon and a single garage was also considered to indicate wealth.

An en suite was unknown, let alone a pantry. Even flushing toilets were generally only in the cities.

Cars were relatively expensive and home computers had not been invented.

Our train services were clunky and getting to the Sydney CBD from the Western suburbs took over a hour.

Free university education had been introduced but our parents didn't even consider university an option.

Double income families were a rarity. Fast food was Chinese takeaway on a Saturday night if at all.

Holidays were spent in old fibro fishing shacks generally three hours drive fron Sydney. Minimal overseas travel or holidays resorts.

To get our first house we moved three hours from Sydney and endured massive travelling times.

I remember saying to my wife: "If we wait until we can afford it we will never have children!" . Same as today.

Social discrimination was more prevalent. Sexual harassment was rampant. Consent was not a considered back then.

The world today is an amazing place by comparison.
 
Of course it's much tougher today, the good old days are gone, our Govts sold us out to Multinationals and the Banks. Jobs were easier to get, no stupid technology to waste UR money on and houses were $30k not +$700k and that's just 50yrs ago. In another 50 we will all be beholden to slumlords and begging for food and energy at this rate.
 
Blaming Generations is Pointless,it's Decades of Our Govts working for the Globalists, depriving Our Citizens ,they use a false Constitution from the Whitlam days it's registered as a Business in the States, and steal from Us all .We are such a Wealthy Country with Natural Resources, Australians do not get a Cut of it as Countries like Iceland does, giving their Residents a share of Oil Profits
Really?

Iceland is unique among OECD countries, as 89% of its primary energy supply and almost 100% of its electricity are obtained from renewable-energy sources. The country produces no fossil fuels and hence imports all of its petroleum products, which are mostly consumed in the transport and fishing sectors.

Source:
How does Iceland make profits from a commodity that doesn't exist?
 
  • Like
Reactions: Squizzy1
I have had the youthful experience of tertiary education in three countries.

1) Pomgolia late 1960s-early1970s: gov't paid tuition fees, free; cost of-living grant,420 quid pa, means tested against parents' income, basic minimum grant for any student, 50 quid. 8.50 quid a week hall of residence cost for bed and board. Pre-Thatcher free health-care (doctor, dentist, optician, hospital) that surpasses what was and is available in NZ and Australia. Public transport was excellent.

2) NZ: no fees for PhD, allowed 12 hours teaching for NZ$12 per week, " slum" room rent NZ$4 in shared house; side of hogget (lamb went to the USA and UK) $NZ3; pint of milk 4c; loaf of bread 9c; lb of butter 34c; dozen eggs 98c; some vegies, I forget; some cents left for bus-fare to uni. The landlord offered to sell me his very run-down house for $8 000. It was next to the city centre but I couldn't afford to buy what I knew what would in a few years become a very good investment and the bank would barely let me in the door.

3) Australia: son and his wife; three 1st class Honours degrees from Australia's top two universities; and 2 PhDs in science from the same between the two of them; and sweet FA chance of paying off their HECS debts that increase every year, let alone buying a house, even though both can earn more dollars than I ever could. Child-care costs them a very large amount of money; I started my Pomgolian education at around 3 years old or earlier in a government-run nursery school so that mum could go to work and not worry about expensive fees.

Old Pomgolia wins, hands down even though at times we lived three families to a three floor Victorian-upstairs-downstairs type of house. Post- Thatcher Pomgolia is as horrible as any 19th Century slum landlord would want it and that is where our politicians want to take Australia; a loser-pays economy.
 
Yes things were different back then but we didn't have mobile phones, internet etc. If we couldn't afford to buy furniture we made do with things we had. We didn't have as many fast food outlets and it was a special occasion if we got take away. Our lives are so completely different. Our pay was less but buying Australian was the norm. We had a lot of home made stuff so we knew no different. Mum could afford to stay at home and she also budgeted so the money would last the distance. We didn't have zip pay or many pay day money lending places. So we weren't enticed to spend above what we earned. We didn't have the extravagant birthdays they have now. Yes it seems that prices are ridiculous now and money doesn't go as far but when you look at the differences between what we had and what we now have, we have a lot more options.
 
Of course it's much tougher today, the good old days are gone, our Govts sold us out to Multinationals and the Banks. Jobs were easier to get, no stupid technology to waste UR money on and houses were $30k not +$700k and that's just 50yrs ago. In another 50 we will all be beholden to slumlords and begging for food and energy at this rate.
I won’t be here in 50 years and I’ve got no kids or grandkids to worry about so I don’t give a shit🙀
 
The RBA will have us all on the street, who was the bright spark that thought putting us all at the mercy of the banks was a good idea? They caused this recession with cheap money for too long, and now we pay for it, as an unelected entity, they can manipulate the Country and the Govt. with no responsibility what so ever. A system that hinges interest rates on the price of oil or any foreign commodity is a flawed one.
 
  • Like
Reactions: Gsr and Rob44
....and proper planning, and the right brains running the operation......
Can't resist. Potential immigrant goes to Australian Embassy in foreign country; "I have half a mind to emigrate to Australia." Immigration Officer, "Welcome Sir; here's your Australian passport.".

Revenge for all those Pommie jokes I put up with in NZ and Australia.
 
Can't resist. Potential immigrant goes to Australian Embassy in foreign country; "I have half a mind to emigrate to Australia." Immigration Officer, "Welcome Sir; here's your Australian passport.".

Revenge for all those Pommie jokes I put up with in NZ and Australia.
lol. Revenge? I would expect given we ‘white Australians’ started from half-witted British. I only see the irony.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else
  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×