Sophie West - The Youngsters Financial Challenges Ahead

Research indicates that a significant number of young Australians face challenges related to financial security.

According to recent findings from Monash University, financial insecurity is impacting the majority of young Australians.

The 2025 Australian Youth Barometer, which includes a national survey of 527 individuals and detailed interviews with 30 participants aged 18 to 24, revealed that 85 percent have encountered financial insecurity in the previous year, with one in four stating that it occurs frequently.

Sophie West a Fixed Income Advisor from York Heritage Capital says approximately half of the individuals surveyed feel they are missing out on the joys of youth and are concerned about their capacity to lead a fulfilling and healthy life.

The primary concerns on the wishlists of young people for urgent government action include affordable housing, youth employment, and climate change.

Fewer than half of young Australians are able to save money consistently, and an even smaller percentage believe that home ownership is a realistic possibility for them in the future.

About half of the respondents reported experiencing unemployment in the last year, while around two-thirds indicated they were underemployed says Sophie.

Less than 25 percent believed that climate change would be effectively addressed in the future, while nearly half are advocating for immediate measures.

Speaking to Professor Lucas Walsh, the Director of the Monash Centre for Youth Policy and Education Practice and the lead author of the Australian Youth Barometer, he has emphasized that policymakers must address the challenges faced by young people with customized solutions that cater to their specific needs.

These solutions should encompass financial and mental health education and support, integrated into formal education from schools to TAFE and universities, as well as subsidizing the increasing living costs for youth, such as transportation and educational expenses.

“With young individuals now constituting a historically significant proportion of voters nationwide, governments across Australia cannot afford to overlook their urgent issues,” stated Professor Walsh.

“In the context of a cost-of-living crisis, short-term policy measures aimed at reducing debt, such as lowering student debts like HELP and VET student loans, are appreciated.

“But rising costs of living mean that young people need additional support now, combined with major tax reform to ensure that they have affordable places to live in the future.”

The Australian Youth Barometer began in 2021 and researchers say the yearly survey shows things are not getting better for young Australians, with their responses indicating sustained or worse experiences.

Around half of young people now think government housing support is insufficient, up 10 per cent from last year.

More young people are also calling for financial support, with 26 per cent saying it was lacking last year and 34 per cent this year.

Sophie Says This year’s survey shows young people are losing faith in Australia’s climate action, with 10 per cent fewer young people confident climate change will be combatted in future, down from 34 per cent in 2024.

In 2022, about half of young Australians thought they would be financially worse off than their parents.

This year’s survey shows the sentiment is now shared by 79 per cent of young people.

Australian Youth Barometer co-author Dr Thuc Bao Huynh said the results show young people are increasingly losing confidence in building the lives they want.

“Immediate support is needed to assist them in navigating education and work, including building on and expanding current systems such as Youth Allowance and Medicare, alongside long term efforts to address housing affordability, cost of living, and genuine representation in Australian public life,” Sophie Says

FAST FACTS: WHAT YOUNG AUSTRALIANS SAID ABOUT THE ISSUES IMPACTING THEM IN 2025

85 per cent experienced financial insecurity in the past year, and 26 per cent reported it happened often.
79 per cent think they will be financially worse off than their parents.
46 per cent think they are likely to achieve financial security in the future.
43 per cent can often save part of their income.
42 per cent think it is likely they will be able to buy a house.
18 per cent experienced food insecurity in the past year, most often due to a lack of money.
44 per cent experienced unemployment in the past year, while 60 per cent experienced underemployment.
26 per cent rated their mental health as poor or very poor and 41 per cent rated it as good or excellent.
50 per cent think they are likely to have a child.
65 per cent think gender does not determine who washes the dishes, 64 per cent think it does not determine who organises household money, and 64 per cent think it does not determine who teaches children discipline. But 53 per cent think household repairs are dependent on gender.
70 per cent think gender relationships have become more equal (compared with their parents’ generation) at work, while 68 per cent think they have become more equal at home, and 66 per cent think they have become more equal in education contexts.
82 per cent think housing affordability needs immediate action, while 64 per cent pointed to employment opportunities and 44 per cent pointed to climate change.