Gen Z more troubled by finances than other generations

Gen Z Australians are more concerned about their finances than any other generation, burdened with high levels of debt including the use of buy now, pay later, according to new research by the Australian Securities and Investments Commission’s (ASIC) Moneysmart program.

Namely, the majority of Gen Zs (68 per cent) deemed their finances a major cause for concern, surpassing other age groups by more than 10 per cent.

While 82 per cent of Gen Zs, representing Australians aged 18 to 26 years old, claimed to feel financially stressed, they also expressed twice the enthusiasm in wanting to better manage their finances.

Moneysmart found that nine in 10 Gen Zs have a strong desire and intent to boost their money skills and financial confidence, with almost half who weren’t financially confident saying their biggest barrier was feeling overwhelmed, followed closely by not knowing where to start (42 per cent).

Additionally, Gen Zs wanted to learn things in the shortest time possible (77 per cent) and were twice as likely as other generations to turn to social media for information and guidance about managing their finances.

In response to cost-of-living pressures, Gen Zs are also considering getting a new or additional job (39 per cent).

Moneysmart moves to close financial awareness gap

In light of these figures, Moneysmart has announced the upcoming launch of a new consumer awareness campaign, aiming to introduce Gen Z to money basics and positive financial habits.

Commenting on the new campaign, ASIC chief executive Warren Day applauded Gen Zs for their enthusiasm to improve their finances but emphasised the need to engage and help them feel more confident about money.

“We want to show them that it doesn’t take a lot of time to make a start with small steps that will make big differences long term,” Mr Day said in a statement from ASIC on Tuesday.

“There’s a real reason why Moneysmart has long been one of the highest-rated financial sites in the nation, and we hope this campaign drives more people to benefit from its resources.

“Learning how to plan and save, and deal with their expenses, sets up young Aussies for their future. We hope this campaign, through its practical tips, will help people feel more in control of their financial lives,” he concluded.