Gen Zs Financial Concerns Outweigh Other Generations
Gen Zs Financial Concerns Outweigh Other Generations
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:
- Gen Zs carry an average personal debt of $8,188, exceeding non-Gen Zs ($6,730).
- 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.
- 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.
- Gen Zs are more likely to utilize Buy Now Pay Later (BNPL) services (28%) compared to non-Gen Zs (21%).
- 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
Share this news item:
RBA Highlights Housing Shortfall as Key Driver of Rental Crisis 17 Oct 2024: Paige Estritori In a fresh perspective on Australia's ongoing rental crisis, the Reserve Bank of Australia (RBA) has shed light on housing supply shortages as the primary cause, rather than the commonly blamed higher interest rates. - read more |
Westpac Ends Cardless ATM Withdrawals: What This Means for Customers 11 Oct 2024: Paige Estritori Westpac Banking Corporation is making significant changes to its ATM services by eliminating the option for cardless cash withdrawals. This shift will require customers to carry a physical card to withdraw cash, starting at 8:00 PM AEST this Friday 11th October. - read more |
Small Businesses in Australia: Navigating Turbulent Times 10 Oct 2024: Paige Estritori Amid the prevailing economic challenges, Australian small businesses are feeling the crunch as a wave of insolvencies underscores the depth of the issue. The construction and hospitality sectors are particularly vulnerable, with businesses seeking new strategies to stay afloat. - read more |
Top 5 Mistakes to Avoid When Applying for Loans Online Online loans have revolutionized the way Australians access finance. With the emergence of fintech and the convenience of the internet, obtaining a loan is now faster, easier, and often more customer-centric. When managed responsibly, the online loan application process empowers borrowers with quick funds for life's unexpected expenses or investments. However, the speed and simplicity of online transactions can also lead to common oversights. - read more
|
Top Credit Repair Strategies: How to Overcome Bad Credit in Australia Understanding the concept of creditworthiness is essential, especially when considering the various financial decisions you make in life. In Australia, a good credit score can open doors to competitive loan rates, favorable mortgage terms, and hassle-free approvals for financing. Conversely, bad credit can be a significant roadblock, impacting your financial well-being and limiting your access to financial resources when you need them most. - read more
|
Debt-to-Income Ratio: Fine-tuning Your Finances for Loan Approval When you embark on the journey of securing a loan, one pivotal factor that looms large in the eyes of lenders is your debt-to-income ratio, commonly known as DTI. This crucial metric measures the chunk of your monthly income that goes towards paying debts, and it serves as a barometer for financial stability. A lower DTI can swing the doors wide open to favorable loan terms, while a higher one might signal red flags for potential lenders. - read more
|
The Ultimate Guide to Responsible Credit Card Use for a Stellar Credit Score In the financial landscape of Australia, credit scores stand as a crucial measure of one's financial health and credibility. A credit score, essentially a numerical representation of your creditworthiness, is used by lenders and financial institutions to determine the risk involved in lending to you. This score can range from 0 to 1200, where higher scores signify better credit health and an increased likelihood of securing loans with favorable terms. - read more
|
Top Tips for Fast Approval: Mastering the Online Loan Application Process Applying for a loan online streamlines the traditional borrowing process, offering a convenient and fast route to financial assistance. With the advent of technology, borrowers can now complete the entire loan application process from the comfort of their own homes. This digital evolution brings with it a series of steps that, when executed correctly, can result in swift loan approvals. - read more
|
Top Credit Repair Strategies: How to Overcome Bad Credit in Australia Understanding the concept of creditworthiness is essential, especially when considering the various financial decisions you make in life. In Australia, a good credit score can open doors to competitive loan rates, favorable mortgage terms, and hassle-free approvals for financing. Conversely, bad credit can be a significant roadblock, impacting your financial well-being and limiting your access to financial resources when you need them most. - read more
|