Research indicates that financial concerns are more pronounced among Gen Z in Australia than any other generation.
According to a nationwide study by ASIC’s Moneysmart program, a significant 68% of Gen Z individuals, aged 18 to 26, consider finances a major source of stress. This surpasses the financial anxiety reported by 57% of people outside the Gen Z demographic. The escalating cost of living contributes to the financial stress experienced by 82% of Australian Gen Zs.
Gen Zs exhibit a proactive approach to managing their financial well-being, twice as likely as other generations to express a desire for improved financial management. The research unveils that 90% of Gen Zs are eager to enhance their money skills and financial confidence, despite encountering obstacles. Nearly half (49%) of financially unsure Gen Zs attribute their lack of confidence to feeling overwhelmed, followed closely by not knowing where to start (42%).
Moreover, the study reveals that Gen Zs prioritise expeditious learning, with 77% expressing a preference for acquiring knowledge in the shortest time possible. Additionally, they are twice as likely as other generations to turn to social media (56% compared to 23% of non-Gen Zs) for information on financial management.
In response to these findings, the Moneysmart program launched a consumer awareness campaign aimed at demonstrating how quickly Gen Z can acquire fundamental money knowledge and establish positive financial habits. The campaign emphasises that in the time it takes to complete routine tasks, individuals can also create budgets, set savings goals, pay off debt, manage casual income, and navigate rising costs.
ASIC Chief Executive Officer Warren Day emphasised the need to engage and empower Gen Z, urging them to take advantage of the free resources available on moneysmart.gov.au to take control of their finances. The campaign ran on Moneysmart channels with the goal of alleviating financial pressures.
Furthermore, the research indicates that Gen Zs face a more challenging financial position compared to other generations. Notably, they carry higher average personal debt ($8,188 compared to non-Gen Zs at $6,730) and are more reliant on credit products. A significant 21% of Gen Zs have personal debts exceeding $10,000, with 4% having debts of $50,000 or more. Also, one in four Gen Zs have less than $1,000 in savings, including 8% with no savings.
The study also highlights the prevalence of Buy Now Pay Later (BNPL) usage among Gen Zs, with 28% using such products compared to 21% among non-Gen Zs. Regional Australia sees a higher prevalence of BNPL use, with 34% of Gen Zs using these products compared to 26% in metropolitan areas. In response to rising living costs, 39% of Gen Zs are contemplating obtaining a new or additional job.
DISCLAIMER: This article serves for informational purposes only and should not be considered as official financial advice. QUICKLE has no working relationships with any financial advisor or companies mentioned.
