ASIC survey finds over 50 per cent of young people are dealing with money stress

ASIC’s research, which surveyed Australians between the ages of 15 and 21 to identify the money challenges faced by younger people, found that 51 per cent are dealing with money stress and agreed with the statement “I often feel stressed about money”.

“Many young Australians are active consumers with multifaceted financial lives. They are handling money, setting savings goals, shopping online, using debit cards and making payments with their phones,” ASIC commissioner Sean Hughes said.

“As they move into their final years of school, they are making decisions around pursuing further education, employment, and moving out of home.”

Encouragingly, 54 per cent of respondents said they want to learn how to manage money well and not waste it, while a further 57 per cent want to learn how to invest and study the different types of investments.

Meanwhile, 62 per cent said they understand superannuation and agreed that “I think it’s important to start building up my superannuation while I’m young”.

Dr Phil Lambert, chair of ASIC’s expert group on the financial wellbeing of young Australians, stressed the importance of the research.

“It is hard to fathom why such a fundamental life competency as managing money is left to chance, rarely discussed in a young person’s life journey and where responsibility is shared by many but rests heavily on the individual to stride confidently, tread cautiously or wander aimlessly along the way,” he said.

The research comes after Craig Keary, chief executive of advice tech provider Ignition Asia Pacific, predicted that younger people will revert back to traditional financial advice services over “finfluencers” during a recent episode of the ifa Show.

“I honestly do think what’s happening is as a result of the pandemic, with these institutions becoming more socially responsible, I think we’ll start to see a movement of the younger generation back to well-known brands,” Mr Keary said.

Listen to the full podcast here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.