Gen Zs Financial Concerns Outweigh Other Generations
Gen Zs Financial Concerns Outweigh Other Generations
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
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:
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
Please Note: If this information affects you, seek advice from a licensed professional.
National Australia Bank (NAB) has taken a significant step in its digital transformation journey by integrating Google Cloud into its existing multi-cloud strategy. This move aims to bolster the bank's digital services and enhance operational efficiency, reflecting a broader trend among financial institutions to leverage cloud technologies for improved service delivery. - read more
The Mortgage & Finance Association of Australia (MFAA) has released the final two guides in its Business Growth Roundtable Series Insights, aimed at assisting mortgage brokers in developing sustainable and professional businesses. These resources are part of the MFAA's ongoing commitment to supporting the growth and professionalism of the mortgage broking industry. - read more
As 2026 approaches, Australia's major banks have released forecasts indicating potential interest rate hikes, sparking concerns about a renewed cost of living crisis. The 'big four' banks-Commonwealth Bank, National Australia Bank (NAB), Westpac, and ANZ-have dismissed the likelihood of rate cuts in the coming year, with some predicting increases as early as February. - read more
Financial health is crucial in ensuring long-term stability and achieving your life goals. Whether it's buying a house, starting a business, or planning for retirement, a strong financial foundation can make these aspirations attainable. One of the key components of maintaining financial health is regular credit monitoring. - read more
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
Understanding interest rates is crucial when it comes to managing your personal loans effectively. Interest rates dictate the cost of borrowing and can significantly influence your financial health over time. - read more
