The financial pressures faced by young people are a growing concern.
In fact, according to the latest research results from Finder, the cost of living crisis is having a disproportionate impact on younger Australians.
More than 4 in 5 in gen Z (85%) have had to reduce their spending due to the rising cost of living.
That’s compared to 49% of baby boomers.
Younger Aussies are particularly affected by the current economic climate
Chris Ellis, Finder Australia CEO, said while rising costs were being felt right around the country, young Australians are struggling the most.
He further commented:
"Our data is showing a clear pattern – generation Z are less prepared to weather the cost of living storm.
Through presenting to this Committee, we hope to raise awareness of the need for increased financial literacy during inflationary periods, so Aussies can be more prepared in future."
Finding money to make ends meet was also a key theme for gen Z, with over half (56%) feeling financially pressured to look for a second job in 2023.
In terms of financial literacy, gen Z were far more likely to say they felt unprepared to make financial decisions during times of inflation (49%). That’s compared to just 18% of baby boomers.
Only 8% of experts and economists surveyed have a positive outlook on the economy.
When asked for their outlook on the economy for 2023, 35% of the panel reported a negative outlook, with 54% neutral and only 8% positive.
Top tips to grow your savings in 2023
- Don’t pay for what you don’t need or aren’t using. Don’t waste money on gym memberships or streaming subscriptions you are rarely using. You can easily join back up again if you find a show or movie you want to watch. Sharing subscriptions can also be a great way to save some cash.
- Don’t pay too much for what you do need. Loyalty doesn’t pay when it comes to financial products. From energy to broadband to insurance, it’s always worth comparing and shopping around for a better deal.
- Track your expenses. Take a look at your transactions for the last few months and what you're spending on living expenses versus everything else. Money management apps can help you see your income and expenses all in a single place. From here, you should be able to find opportunities to cut back on your spending and work out how much you can realistically save each month.
- Use your existing savings to grow your wealth. Don’t just let it sit there. One option is to open a high-interest savings account and earn bonus interest on your balance when you meet the account conditions each month.
