Staying on top of your finances is difficult—no matter your age or the phase of your life you're in. But it seems that financial struggles are hitting one generation in particular: Generation Z (Gen Z).

This is what a recent study revealed, showing that 18 to 26-year-olds in Australia experience the highest financial stress compared to other age groups in the country.

This research, conducted by the Australian Securities and Investments Commission's (ASIC) Moneysmart program, has shed light on the financial struggles of the youngest adults—exposing a generation burdened by debt, reliant on credit, and anxious about their financial future.

The study found that a staggering 68 per cent of Gen Z individuals rate finances as a significant concern, surpassing the 57 per cent of non-Gen Z Australians who share the same worry.

Research revealed that Gen Z Australians are feeling the highest financial stress in the country. Credit: Andrea Piacquadio/Pexels

Furthermore, an alarming 82 per cent of Gen Z reported feeling financial stress, a testament to the economic pressures they face.

The study revealed that this generation carries higher levels of personal debt and is more dependent on credit than other generations.

The average personal debt level for a Gen Z individual stands at $8,188, significantly higher than the $6,730 average for non-Gen Z Australians.

The data further uncovered that over 21 per cent of Gen Z (equivalent to 600,000 people) have personal debt exceeding $10,000. A concerning 4 per cent (or around 124,000 individuals) are grappling with a debt of $50,000 or more.

When it comes to savings, the picture is equally bleak. Around 25 per cent of Gen Z Australians (equivalent to 720,000 individuals) have less than $1,000 in savings. Even more concerning, 8 per cent (or around 217,000 individuals) have no savings at all.

The research also highlighted the popularity of 'buy now pay later' (BNPL) products among the young generation, with 28 per cent using these services compared to 21 per cent of non-Gen Z Australians.

The use of BNPL products is even higher in regional Australia, where about one-third (34 per cent) of Gen Z Australians use these services, compared to about one-quarter (26 per cent) in metro areas.

In response to these financial pressures, 39 per cent of Gen Z Australians are considering seeking new or additional employment.

However, the research also found that Gen Z Australians are more determined to improve their financial literacy and confidence than other age groups.

In response to these findings, ASIC's Moneysmart program is launching a new campaign to empower Gen Z Australians to learn money basics and build positive financial habits.

'Gen Zs are driven to learn more and improve their finances, but there's a clear need to engage and help them feel more confident about money,' said ASIC CEO Warren Day.

The campaign, which will run until mid-December, aims to demonstrate improving financial literacy during the festive season. Individuals who are looking to improve their finances can also utilise the free tools available at https://moneysmart.gov.au/.

Key Takeaways

• According to new research from the Australian Securities and Investments Commission's Moneysmart program, Generation Z (aged 18 to 26) has the most financial worries of any age group, with 68 per cent rating finances as a major concern.
  
• The research also reveals that Generation Z have higher levels of personal debt and are more likely to rely on credit than other generations, with their average personal debt level at $8,188, compared to $6,730 for non-Gen Zs.
  
• One in four (25 per cent) of Generation Z have less than $1,000 in savings, and they are more likely to use 'buy now pay later' products, especially in regional Australia.
  
• In response to this, ASIC has announced that Moneysmart will launch a new campaign aiming to boost the financial confidence and money skills of Generation Z, emphasising that small steps can lead to significant differences long term.
  

What are your thoughts on the financial struggles of Generation Z? Do you have any advice for young Australians looking to improve their financial health? Share your thoughts in the comments below.

 

[IAN3005]

Staying on top of your finances is difficult—no matter your age or the phase of your life you're in. But it seems that financial struggles are hitting one generation in particular: Generation Z (Gen Z).

This is what a recent study revealed, showing that 18 to 26-year-olds in Australia experience the highest financial stress compared to other age groups in the country.

This research, conducted by the Australian Securities and Investments Commission's (ASIC) Moneysmart program, has shed light on the financial struggles of the youngest adults—exposing a generation burdened by debt, reliant on credit, and anxious about their financial future.

The study found that a staggering 68 per cent of Gen Z individuals rate finances as a significant concern, surpassing the 57 per cent of non-Gen Z Australians who share the same worry.

View attachment 34775

Research revealed that Gen Z Australians are feeling the highest financial stress in the country. Credit: Andrea Piacquadio/Pexels

Furthermore, an alarming 82 per cent of Gen Z reported feeling financial stress, a testament to the economic pressures they face.

The study revealed that this generation carries higher levels of personal debt and is more dependent on credit than other generations.

The average personal debt level for a Gen Z individual stands at $8,188, significantly higher than the $6,730 average for non-Gen Z Australians.

The data further uncovered that over 21 per cent of Gen Z (equivalent to 600,000 people) have personal debt exceeding $10,000. A concerning 4 per cent (or around 124,000 individuals) are grappling with a debt of $50,000 or more.

When it comes to savings, the picture is equally bleak. Around 25 per cent of Gen Z Australians (equivalent to 720,000 individuals) have less than $1,000 in savings. Even more concerning, 8 per cent (or around 217,000 individuals) have no savings at all.

The research also highlighted the popularity of 'buy now pay later' (BNPL) products among the young generation, with 28 per cent using these services compared to 21 per cent of non-Gen Z Australians.

The use of BNPL products is even higher in regional Australia, where about one-third (34 per cent) of Gen Z Australians use these services, compared to about one-quarter (26 per cent) in metro areas.

In response to these financial pressures, 39 per cent of Gen Z Australians are considering seeking new or additional employment.

However, the research also found that Gen Z Australians are more determined to improve their financial literacy and confidence than other age groups.

In response to these findings, ASIC's Moneysmart program is launching a new campaign to empower Gen Z Australians to learn money basics and build positive financial habits.

'Gen Zs are driven to learn more and improve their finances, but there's a clear need to engage and help them feel more confident about money,' said ASIC CEO Warren Day.

The campaign, which will run until mid-December, aims to demonstrate improving financial literacy during the festive season. Individuals who are looking to improve their finances can also utilise the free tools available at https://moneysmart.gov.au/.

Key Takeaways

• According to new research from the Australian Securities and Investments Commission's Moneysmart program, Generation Z (aged 18 to 26) has the most financial worries of any age group, with 68 per cent rating finances as a major concern.
• The research also reveals that Generation Z have higher levels of personal debt and are more likely to rely on credit than other generations, with their average personal debt level at $8,188, compared to $6,730 for non-Gen Zs.
• One in four (25 per cent) of Generation Z have less than $1,000 in savings, and they are more likely to use 'buy now pay later' products, especially in regional Australia.
• In response to this, ASIC has announced that Moneysmart will launch a new campaign aiming to boost the financial confidence and money skills of Generation Z, emphasising that small steps can lead to significant differences long term.

What are your thoughts on the financial struggles of Generation Z? Do you have any advice for young Australians looking to improve their financial health? Share your thoughts in the comments below.

'Cut your coat according to the cloth'........bet the average Gen Z has no budget.
I'll stick them on a budget... their eyes will probably water.. get your priorities straight.... 1. Roof over your head. 2. A full belly and then the other things after that.

 

[Observer]

Also coming in to effect is that Gen Z have ALL the answers - NOT.
Why wouldn't they lean on or take advice from elders who have a lot more experience of life and all that matters?
I commend my grandson for taking the view that "He will work it out" in an attempt to keep his life in order but he could also pull his head in a bit and acknowledge that advice given by elders should not be ignored or taken lightly in vain.

 

[Pat T]

So many parents gave these kids so much (because they either missed out or had to work for it) . So many kids want everything yesterday. They buy an expensive house, why not get a smaller one then up grade in a few years? Fill it with expensive furniture- what s wrong with second hand for a couple of years. At the shopping centres the salons are full of people getting their finger and toe nails painted. And tattoos don’t come cheap. Too many have not heard of restraint. Maybe a course in budgeting and priorities should be compulsory in high schools.

 

[StarTrekker]

My Father gave me this information when I got my first job.
Take the money out of the pay packet and divide into 3 piles.
The first one is for board(rent, utilities, food).
The second one is to go into the bank for savings.
The third is for spending (clothes, entertainment)
I lived like this for many years.

 

[IamJane]

...remember too, alot of them are still living at home, probably not paying any "board" or subscribing to any other household bills. They are a selfish generation who spend everything on themselves and are too vain by half. Of course, we as parents must take some responsibility for this, but society as a whole including social media must carry alot of the blame. I started to save at school where we were given a bankbook and encouraged to bring sixpence each week. I have never not saved..when we married we lived on my wage and saved my husbands towards buying land and later a house. Everything to fill it was then saved for and paid in cash (perhaps a little H.P. in the early days) Credit has always been anathema to me and I feel very vulnerable if I haven't got savings for unexpected contingencies. On a pension, I still try and save a little so I don't have to ever ask anyone for help. Apart from a mortgage, I have never borrowed from anyone and did without if I couldn't afford something. Like the old adage "Want a thing lot enough and you don't"

 

[Gsr]

I agree, the problem is the want everything new and want it now attitude of Gen Z. A lot of it is to do with the way they were brought up, given everything as soon as they demanded it, often to keep the peace. They have never been taught to save, and seem to spend their money as soon as they get it. It is a harsh lesson to learn trying to survive on your own money, especially for young ones who have to leave home for study or work.

 

[EllieN]

My Father gave me this information when I got my first job.
Take the money out of the pay packet and divide into 3 piles.
The first one is for board(rent, utilities, food).
The second one is to go into the bank for savings.
The third is for spending (clothes, entertainment)
I lived like this for many years.

Same for me. Started work in 1966. Take home pay was $36.00 pfn. $12 to mum board, $12 to savings and $12 for me.
I know times were different, but I managed to entertain myself and pay weekly train fares to town on $6 each week.

 

[Observer]

I agree, the problem is the want everything new and want it now attitude of Gen Z. A lot of it is to do with the way they were brought up, given everything as soon as they demanded it, often to keep the peace. They have never been taught to save, and seem to spend their money as soon as they get it. It is a harsh lesson to learn trying to survive on your own money, especially for young ones who have to leave home for study or work.

It is also peer pressure

 

[gordon1940]

Financial Planning and Budgeting should be a Mandatory Unit in ALL higher Secondary Education Classes. Best to have Students leave School with a basic knowledge of Finance.

 

[StarTrekker]

Same for me. Started work in 1966. Take home pay was $36.00 pfn. $12 to mum board, $12 to savings and $12 for me.
I know times were different, but I managed to entertain myself and pay weekly train fares to town on $6 each week.

My first pay in the late '70s was $190 pfn and I lived by myself. Even the dole was $36.00 and I was able to save on it.

 

[Knell]

I would have thought that this generation would always be in that situation - from school to Uni - large Hecs Debt, first car to get part time work, etc. These generations are generally more tertiary educated.

 

[magpie1]

My first pay back in early 70's was $38 per week....that was when I started my Hotel Management course in Melbourne at one of the leading Hotel groups...I started as a room service waiter....even though the pay was lean the tips were great, averaging an extra $70 plus a week. That helped with my board at home and paid for my first car eventually. Plus because of the odd work times, my social life was non existent so I saved quite a lot also, which eventually helped with a deposit for our first home when I got married early on. Young kids today can't do that because of relatively low wages and the higher cost of housing and the rest of the financial problems we are all facing to-day. Also immigration should be stopped for a few years to help with the housing crisis that abounds at the moment.

 

[Macarj]

I agree, the problem is the want everything new and want it now attitude of Gen Z. A lot of it is to do with the way they were brought up, given everything as soon as they demanded it, often to keep the peace. They have never been taught to save, and seem to spend their money as soon as they get it. It is a harsh lesson to learn trying to survive on your own money, especially for young ones who have to leave home for study or work.

I left home at 16 rented a flat learnt how to budget bought my first shares at 17 didn't go to the pub cooked my own food didn't go on holidays and had an old car I think Gen Z need to learn a lot

 

[David567]

Have you noticed how this generation all have the latest phone. Usually on credit and paying massive amounts of money in monthly feesnto cover the cost. Most drive late model cars all on credit.
No wonder they are all broke.

 

[Knell]

Smart phones and technology are an essential part of life now. Pretty soon they will be the tax payers contributing to our services, infrastructure, funding for pensions etc. New generation of Doctors, Nurses, Scientists, Politicians, Accountants Dentists etc. They will work it out - it is just a different time.

 

[kevinwoodtufftyke52@gmail]

Staying on top of your finances is difficult—no matter your age or the phase of your life you're in. But it seems that financial struggles are hitting one generation in particular: Generation Z (Gen Z).

This is what a recent study revealed, showing that 18 to 26-year-olds in Australia experience the highest financial stress compared to other age groups in the country.

This research, conducted by the Australian Securities and Investments Commission's (ASIC) Moneysmart program, has shed light on the financial struggles of the youngest adults—exposing a generation burdened by debt, reliant on credit, and anxious about their financial future.

The study found that a staggering 68 per cent of Gen Z individuals rate finances as a significant concern, surpassing the 57 per cent of non-Gen Z Australians who share the same worry.

View attachment 34775

Research revealed that Gen Z Australians are feeling the highest financial stress in the country. Credit: Andrea Piacquadio/Pexels

Furthermore, an alarming 82 per cent of Gen Z reported feeling financial stress, a testament to the economic pressures they face.

The study revealed that this generation carries higher levels of personal debt and is more dependent on credit than other generations.

The average personal debt level for a Gen Z individual stands at $8,188, significantly higher than the $6,730 average for non-Gen Z Australians.

The data further uncovered that over 21 per cent of Gen Z (equivalent to 600,000 people) have personal debt exceeding $10,000. A concerning 4 per cent (or around 124,000 individuals) are grappling with a debt of $50,000 or more.

When it comes to savings, the picture is equally bleak. Around 25 per cent of Gen Z Australians (equivalent to 720,000 individuals) have less than $1,000 in savings. Even more concerning, 8 per cent (or around 217,000 individuals) have no savings at all.

The research also highlighted the popularity of 'buy now pay later' (BNPL) products among the young generation, with 28 per cent using these services compared to 21 per cent of non-Gen Z Australians.

The use of BNPL products is even higher in regional Australia, where about one-third (34 per cent) of Gen Z Australians use these services, compared to about one-quarter (26 per cent) in metro areas.

In response to these financial pressures, 39 per cent of Gen Z Australians are considering seeking new or additional employment.

However, the research also found that Gen Z Australians are more determined to improve their financial literacy and confidence than other age groups.

In response to these findings, ASIC's Moneysmart program is launching a new campaign to empower Gen Z Australians to learn money basics and build positive financial habits.

'Gen Zs are driven to learn more and improve their finances, but there's a clear need to engage and help them feel more confident about money,' said ASIC CEO Warren Day.

The campaign, which will run until mid-December, aims to demonstrate improving financial literacy during the festive season. Individuals who are looking to improve their finances can also utilise the free tools available at https://moneysmart.gov.au/.

Key Takeaways

• According to new research from the Australian Securities and Investments Commission's Moneysmart program, Generation Z (aged 18 to 26) has the most financial worries of any age group, with 68 per cent rating finances as a major concern.
• The research also reveals that Generation Z have higher levels of personal debt and are more likely to rely on credit than other generations, with their average personal debt level at $8,188, compared to $6,730 for non-Gen Zs.
• One in four (25 per cent) of Generation Z have less than $1,000 in savings, and they are more likely to use 'buy now pay later' products, especially in regional Australia.
• In response to this, ASIC has announced that Moneysmart will launch a new campaign aiming to boost the financial confidence and money skills of Generation Z, emphasising that small steps can lead to significant differences long term.

What are your thoughts on the financial struggles of Generation Z? Do you have any advice for young Australians looking to improve their financial health? Share your thoughts in the comments below.

STOP buying unnecessary items and start SAVING! Simple.

 

[Brody]

Staying on top of your finances is difficult—no matter your age or the phase of your life you're in. But it seems that financial struggles are hitting one generation in particular: Generation Z (Gen Z).

This is what a recent study revealed, showing that 18 to 26-year-olds in Australia experience the highest financial stress compared to other age groups in the country.

This research, conducted by the Australian Securities and Investments Commission's (ASIC) Moneysmart program, has shed light on the financial struggles of the youngest adults—exposing a generation burdened by debt, reliant on credit, and anxious about their financial future.

The study found that a staggering 68 per cent of Gen Z individuals rate finances as a significant concern, surpassing the 57 per cent of non-Gen Z Australians who share the same worry.

View attachment 34775

Research revealed that Gen Z Australians are feeling the highest financial stress in the country. Credit: Andrea Piacquadio/Pexels

Furthermore, an alarming 82 per cent of Gen Z reported feeling financial stress, a testament to the economic pressures they face.

The study revealed that this generation carries higher levels of personal debt and is more dependent on credit than other generations.

The average personal debt level for a Gen Z individual stands at $8,188, significantly higher than the $6,730 average for non-Gen Z Australians.

The data further uncovered that over 21 per cent of Gen Z (equivalent to 600,000 people) have personal debt exceeding $10,000. A concerning 4 per cent (or around 124,000 individuals) are grappling with a debt of $50,000 or more.

When it comes to savings, the picture is equally bleak. Around 25 per cent of Gen Z Australians (equivalent to 720,000 individuals) have less than $1,000 in savings. Even more concerning, 8 per cent (or around 217,000 individuals) have no savings at all.

The research also highlighted the popularity of 'buy now pay later' (BNPL) products among the young generation, with 28 per cent using these services compared to 21 per cent of non-Gen Z Australians.

The use of BNPL products is even higher in regional Australia, where about one-third (34 per cent) of Gen Z Australians use these services, compared to about one-quarter (26 per cent) in metro areas.

In response to these financial pressures, 39 per cent of Gen Z Australians are considering seeking new or additional employment.

However, the research also found that Gen Z Australians are more determined to improve their financial literacy and confidence than other age groups.

In response to these findings, ASIC's Moneysmart program is launching a new campaign to empower Gen Z Australians to learn money basics and build positive financial habits.

'Gen Zs are driven to learn more and improve their finances, but there's a clear need to engage and help them feel more confident about money,' said ASIC CEO Warren Day.

The campaign, which will run until mid-December, aims to demonstrate improving financial literacy during the festive season. Individuals who are looking to improve their finances can also utilise the free tools available at https://moneysmart.gov.au/.

Key Takeaways

• According to new research from the Australian Securities and Investments Commission's Moneysmart program, Generation Z (aged 18 to 26) has the most financial worries of any age group, with 68 per cent rating finances as a major concern.
• The research also reveals that Generation Z have higher levels of personal debt and are more likely to rely on credit than other generations, with their average personal debt level at $8,188, compared to $6,730 for non-Gen Zs.
• One in four (25 per cent) of Generation Z have less than $1,000 in savings, and they are more likely to use 'buy now pay later' products, especially in regional Australia.
• In response to this, ASIC has announced that Moneysmart will launch a new campaign aiming to boost the financial confidence and money skills of Generation Z, emphasising that small steps can lead to significant differences long term.

What are your thoughts on the financial struggles of Generation Z? Do you have any advice for young Australians looking to improve their financial health? Share your thoughts in the comments below.

 

[Brody]

I may be wrong, but being on the other side of this question. I believe generation Z are probably,not overly concerned about the money they spend. Generally
speaking they want the very latest of whatever... Mobile Phones, Expensive Label Clothes, the Flash Car etc.

Personally I believe that if you can't afford it you are better to wait either
until it is on special, or you can pay for it by saving a bit for it..
I am far from wealthy, but I have always
hated Debt, so I either put off getting it.
(If possible not everything can wait)
Or I may think about a cheaper option.
Obviously there are a lot of different
reasons for the way people do things, but I think using Credit Cards is a bit harder
to Budget because we can't see what the cost is of a purchase is. we only think of it when the Statement comes in.
It is a trap, against being able to stay within our earnings