Young Australians’ finances: A five year snapshot
Financial pressures are a defining feature of life for many young Australians. New findings from Monash University’s Centre for Youth Policy & Education Practice, Young Australian lives during polycrisis: Five years of key trends from the Australian Youth Barometer, 2021–2025, released today, highlight the extent of financial insecurity facing young people and its implications for wellbeing, participation and future opportunities. In this post, the authors examine what the data reveal and why these trends matter for policy.
Young Australians are resilient but financially stretched thin. Our new report analysing 2,731 survey responses and 150 interviews from a nationally representative sample of Australians aged 18-24 from 2021–2025 shows how.
We asked them about finances, work, wellbeing, education, and the future. Here are some key findings, which illustrate how these are connected.
Financial difficulty is normal rather than exceptional
While perceived mental health impacts of COVID‑19 fell from 87% in 2021 to 59% in 2025, longer-term shifts reflect a reshaping of how young people navigate the present and plan for the future.
Across all five years, 82–90% of young Australians experienced financial difficulty. Their financial concerns were modest:
“Just not having enough income; it’s that simple.” (2022 interview)
Family support remained a major lifeline, with 90% reliant on family in 2021, decreasing to 74% in 2025, but still significant.
“If I lived on my own I wouldn’t be earning enough to live right now… luckily [my mother] is able to support me.” (2024 interview)
Confidence in achieving financial security in the future declined from 53% to 46% over the five years. Fewer young people could save regularly (49% to 43%).
Accessing short‑term credit appeared to be a coping strategy. In 2021, 53% used Buy Now Pay Later (BNPL). BNPL services enable young people to pay by instalments rather than the full amount upfront. Where interest is not usually paid on the purchase, fees are charged instead.
Over half applied for a loan in the previous year (67% in 2022, decreasing to 51% in 2025.
Our participants expressed critical wariness of these financial services. By 2025, fewer (27%) reported relying on these services.
Nevertheless, BNPL’s appeal, such as its flexibility, payment-by-instalments and no interest masks deeper issues related to debt accumulation in a precarious labour market.
Life is more insecure
While labour market conditions offer less opportunities for desirable, stable work, young people nonetheless value:
High salary (66% to 78%)
Location (66% to 73%)
Job security (67% to 71%).
Casual work surged from 18% in 2021 to 32% in 2025. Retail remained the top employer (17–21%), followed by education and training (8–17%).
Food insecurity eased slightly (21–24% five years ago 17–18% last year), but financial stress remained constant. These figures are unacceptable in our relatively wealthy economy.
Belief in being able to afford a comfortable home within 12 months fell from 46% in 2022 to 30% in 2025. Affordable housing became the number one issue every year from 2022 onward, reaching 82% in 2025. Young people describe the housing market with frustration and fatalism:
“I’m probably not going to be able to afford a house for a very long time.” (2025 interview)
Young people linked these stresses to wellbeing:
“If you are financially secure you get to have more choices to eat healthier… there is a tie between financial security and mental wellbeing.” (2024 interview)
Questioning education
Young people are still encouraged to undertake further education and training, but some question the value of doing so. More than half said their education prepared them for the future, with many seeking more practical life skills, such as understanding and doing their taxes.
The three Ss
So what does all of this mean? Studying, secure accommodation and financial security are all markers associated with advancing in life, but they are eroding for many young people. The removal of these stepping stones destabilises youth pathways.
The inability of young people to plan was a recurring theme:
“I don’t even know what things are going to look like in the next five years…” (2025 interview)
What young people want
Young people holistically describe physical, mental, social, financial wellbeing.
Across the five‑year Barometer, affordable housing and employment opportunities became ranked the highest - linked in part to cost of living pressures.
These areas also affect young people’s ability to plan.
Setting aside reports that young Australians rank among the most financially literate globally, responses to improve the navigation of finances should reflect their interconnected, holistic views of life.
When it comes to finances, young people could benefit from better understanding digital financial tools, and a more holistic approach to planning their finances in uncertain times in ways that mirror the interconnectedness in their own lives. We also need to better understand how these newer financial services are used - especially when young people are under strain.
Professor Lucas Walsh coauthored Young Australian Lives During Polycrisis: Five Years of Key Trends from the Australian Youth Barometer, 2021–2025 with Dr Zihong Deng and Dr Thuc Bao Huynh. The report can be downloaded here.
Moderator: Jozica Kutin
Photo by Velina Bozhilova on Unsplash