Invest
Failure to launch: Young Australians struggle with ‘financial adulting’
Invest
Failure to launch: Young Australians struggle with ‘financial adulting’
Only two-thirds of Australians under the age of 25 believe they are financially responsible with money, while one in 10 Australians doesn’t get their financial act together until the age of 30, new research has shown.
Failure to launch: Young Australians struggle with ‘financial adulting’
Only two-thirds of Australians under the age of 25 believe they are financially responsible with money, while one in 10 Australians doesn’t get their financial act together until the age of 30, new research has shown.
Research conducted by “buy now, pay later” (BNPL) provider OpenPay through a September 2020 survey highlights that the definition of ‘financial adulting’ is, for almost half of Aussies, simply spending less money than you make each month.
According to the survey results, a vast majority of young Australians do not see investing in property, shares or having a home loan as making them financially responsible.
With around two-thirds of people currently feeling like they are responsible with their money, the survey looked to explore what prompts Australians to start taking their budget seriously.
The humdrum of paying for household bills, groceries and car insurance – the realities of adulting – made over two-fifths of respondents start thinking about being more responsible with their finances.
“There’s a steep curve to adulting. It feels like one day like the world is your oyster and the next you’re debating how cost-effective it is to get private health insurance to pay for your new glasses, or coming to terms with an unexpected vet bill for your cavoodle,” said Mr Eidel.
“Part of financial adulting is managing your cash flow, making sure you have enough money at the end of each month to cover your costs, but also being able to afford the things that bring you joy.”
Real-world financial education
While the majority of young Australians believe they are financially savvy, 73 per cent said they did not learn about finances in school.
Without this school education in place, everyone under the age of 54 said they got most of their financial advice from their parents. Yet only two-fifths believe their parents are financial role models, and a third reported that they act differently with their money to their mum or dad.
Some even feel like they don’t have enough financial knowledge to pass onto their kids, with one in 10 saying they would hire an expert to teach their children about money.
“Young Australians face very different career paths and economic challenges than their parents, but they also have different expectations for how they should be able to manage their financial activities. The rise in BNPL services is an example of how younger consumers are changing the market in their demand for autonomous, smarter ways to manage their financial responsibilities,” Mr Eidel concluded.
About the author
About the author
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more
Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more
Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
Spending
Household spending takes a hit after strong December
Strong spending over the Christmas shopping period in December has been followed by a weaker January. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
