Gen Z more concerned about finances than any generation in Australia
New research shows Gen Zs are feeling financially stressed with high levels of debt including Buy Now Pay Later use.
New nationwide research released by ASIC’s Moneysmart program shows for seven in ten (68%) Gen Zs, finances are a major cause of concern, more than any other age group (57% of non-Gen Zs).
Faced with the rising cost of living, 82% of Aussie Gen Zs, representing Aussies aged 18 to 26 years old, feel financially stressed, but are twice as likely as other generations to want to better manage their finances as a response.
Encouragingly, nine in ten Gen Zs have a strong desire and intent to boost their money skills and financial confidence, despite facing several barriers. Almost half (49%) of Gen Zs who aren’t financially confident say feeling overwhelmed is the biggest barrier to becoming more confident with money, followed closely by not knowing where to start (42%).
The research also revealed Gen Zs want to learn things in the shortest time possible (77%) and are twice as likely as other generations to turn to social media for information and guidance about managing their finances (56% compared to 23% of non-Gen Zs).
Financial position of Gen Zs worse than other generations
Research also reveals that on average, Gen Zs have higher levels of personal debt and greater reliance on credit products than other generations.
Key findings include:
- Gen Zs have an average personal debt of $8,188 compared to non-Gen Zs ($6,730)
- One in five (21%, or the equivalent of 600,000) have $10,000 or more in personal debt, including 4% (or the equivalent of 124,000) who have $50,000 or more
- One in four (25%, or the equivalent of 720,000) have less than $1,000 in savings, including 8% (or the equivalent of 217,000) who have no savings
- Gen Zs are also more likely than non-Gen Zs to use Buy Now Pay Later (BNPL) products (28% compared to 21% of non-Gen Zs)
- BNPL use is also higher in regional Australia, where one in three (34%) Gen Zs use BNPL products compared to one in four (26%) in metro areas.
In response to cost-of-living pressures, Gen Zs are also considering getting a new or additional job (39%).
To live a life of financial security and choice, contact our Financial Planning team at Omnis Group in West Perth to find out how we can help you or read more here »
