Gen Zs Financial Concerns Outweigh Other Generations

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.

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

How Digital Finance is Transforming Car Purchases in Australia

02 Apr 2026: Paige Estritori

The landscape of car purchasing in Australia is undergoing a significant transformation, driven by the rapid adoption of digital finance solutions. Traditional methods of securing car loans are being replaced by streamlined online processes, offering consumers faster approvals and enhanced convenience. - read more

ASIC Calls for Strengthened Consumer Protections in Car Finance

02 Apr 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about responsible lending practices. The findings indicate that some consumers are being subjected to exorbitant fees and are defaulting on their loans shortly after approval. - read more

Why Australians Are Turning to Novated Leasing in a High-Interest Market

02 Apr 2026: Paige Estritori

In the current economic climate, characterized by elevated interest rates and high vehicle prices, Australians are increasingly exploring alternative methods of financing their car purchases. One such method gaining popularity is novated leasing, which offers a cost-effective and tax-efficient alternative to traditional car loans. - read more

ASIC Calls for Improved Consumer Safeguards in Car Finance Sector

25 Mar 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the motor vehicle finance sector, uncovering significant issues that adversely affect consumers. This investigation was initiated in response to a surge in complaints regarding high costs associated with car financing. - read more

Australian Car Buyers Increasingly Postpone Finance Decisions

25 Mar 2026: Paige Estritori

Recent research indicates a growing trend among Australian car buyers to delay decisions regarding vehicle financing. A study conducted by carsales reveals that only 71% of buyers have determined their financing method before commencing their vehicle search, a decrease from 77% in previous years. - read more

Click for more Finance News