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Gen Zs Financial Concerns Outweigh Other Generations

Gen Zs Financial Concerns Outweigh Other Generations

Financial matters are causing significant worry among Gen Z individuals, with a staggering 68% feeling the pressure according to the recent research findings by ASIC's Moneysmart program, surpassing the concerns of any other age group.
This release coincides with the introduction of a fresh consumer awareness campaign by Moneysmart, aimed at empowering Gen Z individuals to quickly acquire fundamental financial knowledge and develop positive fiscal habits.

The study highlights the growing financial stress experienced by 82% of Australian Gen Zs (aged between 18 to 26). Nevertheless, this generation is also twice as likely as other age groups to demonstrate a strong desire to enhance their financial management skills as a means to overcome their financial pressures.

Challenges to Financial Well-being

Encouragingly, nine out of ten Gen Z individuals are determined to boost their financial literacy and confidence, despite facing a number of obstacles. The research indicates that almost half (49%) of financially insecure Gen Zs indicate feeling overwhelmed as the biggest barrier to achieving financial security, closely followed by not knowing how or where to start (42%).

Quick Learning and Social Media Appeal

Furthermore, the research unveils that Gen Zs prefer to acquire knowledge in the shortest time possible (77%) and are twice as likely as other generations to turn to social media platforms (56% compared to 23% of non-Gen Zs) for guidance and information on financial management.

Higher Debt Levels and Reliance on Credit Products

As per the research findings, Gen Zs typically possess higher levels of personal debt compared to other age groups, alongside a greater dependency on credit products. Key highlights of the study include:

  1. Gen Zs carry an average personal debt of $8,188, exceeding non-Gen Zs ($6,730).
  2. Approximately 21% (equivalent to 600,000 individuals) are burdened with personal debts amounting to $10,000 or more, with 4% (equivalent to 124,000 individuals) facing debts exceeding $50,000.
  3. 25% (equivalent to 720,000 individuals) have less than $1,000 in savings, including 8% (equivalent to 217,000 individuals) who have no savings at all.
  4. Gen Zs are more likely to utilize Buy Now Pay Later (BNPL) services (28%) compared to non-Gen Zs (21%).
  5. BNPL usage is also more prevalent in regional Australia, with 34% of Gen Zs in these areas utilizing such services, compared to 26% in metro areas.

Surviving Cost-of-Living Challenges

In response to the mounting pressure of the cost of living, Gen Z individuals are considering options like taking on additional or new employment opportunities (39%) to address their financial difficulties.

Published:Saturday, 18th Nov 2023
Source: Paige Estritori

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