How Young Australians Are Navigating the Rising Cost of Living: A Financial Crisis in the Making
Are you worried about money? With interest rates on the rise, house prices skyrocketing, and inflation outpacing wages, many Australians are struggling to keep up with the cost of living. But it's not just about the present; young Aussies are increasingly concerned about their financial future.
At just 16 years old, Tilly reflects on the burden of rising house prices, acknowledging the worry it brings. Elijah, 23, shares a similar sentiment, feeling caught in a cycle of rent and homeownership that seems increasingly unattainable. Jack, 19, and Vanessa, 22, echo these sentiments, highlighting the financial pressures they face daily.
Financial Concerns Among Young Australians
The State of Australia's Children report, released by UNICEF Australia in 2025, surveyed over 2,000 12- to 17-year-olds, revealing that 55% had mixed or unsure feelings about the future, with financial security and housing as major concerns. Mission Australia's 2025 Youth Survey, involving over 17,000 14- to 19-year-olds, identified the cost of living as the most pressing issue, with one in five experiencing money-related stress.
Reports from Curtin University and Monash University in 2025 further emphasized financial difficulties as a top concern among young Australians. The lack of financial discussions during childhood contributes to the anxiety many young Aussies are facing.
The Importance of Financial Education
Jack's experience reflects a common challenge, as parents may not have prioritized financial conversations during his upbringing. However, Jack believes parents should engage in open discussions about finances with their children. Nikki, 19, shares a similar perspective, learning about finance through her father's business but noting its limited coverage in schools.
Katrina Samios, CEO of the Financial Basics Foundation, emphasizes the need for financial literacy in the Australian curriculum. She advocates for financial behavior and habits, such as saving and investing, and understanding financial messaging from influencers, which can lead to FOMO (fear of missing out).
Saving Strategies and Realities
Despite financial pressures, many young people have been actively saving. NAB data reveals that Generation Z aged 18 to 29 is the most committed saver, with 89% of young women and 85% of young men actively saving. Elijah, 23, attributes his saving mindset to a financially open home, while Tilly and Gianna actively try to save and avoid splurging.
However, not everyone can save, as Stephen, 20, and Jackson, 22, admit to spending all their money. Jackson highlights the challenge of earning enough to save, as most of his income is spent by the next pay cheque.
Financial Literacy: A Missing Link
Katrina advocates for financial literacy as a standalone, comprehensive topic in the curriculum, covering financial behavior, habits, and understanding financial messaging. She believes that integrating real-world examples, such as Instagram influencers and marketing, into lessons can enhance financial literacy and empower young people to focus on their goals.
Overcoming Financial Stress
Despite the challenges, young people remain optimistic. Elijah advises against stress, emphasizing the importance of being smart and conscious with money. Vanessa shares a similar sentiment, encouraging commitment and a positive mindset. Lachlan, 21, suggests a simple plan as the key to financial success.
In conclusion, the rising cost of living poses significant financial challenges for young Australians. However, through financial education, open discussions, and a commitment to saving, they can navigate these pressures and build a resilient financial future.
