How young people are coping with the rising cost of living

Are you worried about money?

With interest rates on the rise again, house prices continuing to soar, and inflation outpacing wages, it's no surprise that many people are struggling with the cost of living.

Increasingly, young Australians say they're not just worried about the situation now, but also what it means for the future.

At just 16 years old, Tilly says rising house prices are something she thinks about often.

Elijah, 23, says, "Trying to escape getting caught in the rent and being able to buy a house, for example, is seeming more and more unrealistic as time goes by."

"It's just like inflation's gone up so much and stuff recently, and it's just tough on everybody," Jack, 19, says.

"It has been definitely on my mind, and every pay cheque I'm like, OK, what can I buy, what can I not buy. So, yeah, definitely on my mind," Vanessa, 22, says.

Young people across Australia feel financial crunch

The State of Australia's Children report, released by UNICEF Australia in late 2025, surveyed more than 2,000 12- to 17-year-olds about their wellbeing.

Fifty-five per cent said they had mixed or unsure feelings about the future, with financial security and housing being major concerns.

Likewise, in Mission Australia's 2025 Youth Survey of more than 17,000 14- to 19-year-olds, the most pressing issue for young people was the cost of living, with one in five agreeing that they felt money-related stress.

Reports from Curtin University and Monash University in 2025 also found financial difficulties to be a top concern among young Australians.

Contributing in part to the financial anxiety many young Aussies are feeling is the amount, or lack thereof, of financial discussion during childhood.

Jack says his parents didn't speak about finances at home very much when he was growing up, but thinks parents should talk about finances with their kids.

"It's important because obviously your parents are there to set you up for your future, and finance is a little bit a part of that," he says.

Nikki, 19, says that she did learn about finance at home through her dad's business, but that it wasn't covered much at school.

"A lot of people didn't even know what a tax return was or how to do that or how to sort of manage all that stuff."

"We're asking young people to engage and make financial decisions the minute that they leave school, and yet we haven't prepared them for it," says Katrina Samios, CEO of not-for-profit organisation, Financial Basics Foundation.

Katrina says money shouldn't be a taboo topic at home or at school, and the earlier kids are introduced to financial concepts and discussions, the better.

"We understand that young people are navigating a very complex financial system now, one that previous generations never had to," she says.

"And certainly, the key is building your financial toolkit early so that you are resilient regardless of what's happening in the market and with those cost-of-living pressures."

A big part of that financial toolkit is saving, and despite the financial pressures, many young people have been doing just that.

In fact, new data from NAB shows that generation Zs aged 18 to 29 are the most committed savers of any age group, with 89 per cent of young women and 85 per cent of young men actively putting money aside.

Elijah, 23, says he doesn't have a dedicated savings account, but that he has "a strong foundation of saving in [his] mindset", thanks to growing up around a financially open home.

"It was never necessarily a taboo conversation as much as it might be for some," he says.

Tilly is in the same boat, saying, "I don't have a savings account, but I do actively try and save money, and not splurge or buy anything super expensive."

Jianna, 19, makes sure she enjoys her money, but "at the end of the day, I always make sure I have enough savings," she says.

Saving isn't the answer for everybody, though, including Stephen, 20, and Jackson, 22.

"No, unfortunately, I spend all of my money. So, I don't save much now," Stephen says.

"I'm not really earning enough to be able to do that. Most of my money is coming in and then leaving by the next pay cheque," Jackson says.

Australian curriculum 'needs more financial literacy'

Katrina thinks that personal finance needs to be a "standalone, comprehensive topic" in the Australian curriculum that shouldn't just be about numbers.

It must include discussion about financial behaviour and habits like saving and investing, she says, and understanding financial messaging from the likes of influencers on social media that can leave young people feeling FOMO – the fear of missing out.

"How rich is a lesson when you can sit there with a teacher and talk about Instagram, the influencers, marketing, and actually unpack that," Katrina says.

"That's actually financial literacy because it enables you to filter all that stuff out and focus on your goals rather than keeping up appearances and this fake image that people encourage you to have.

"They're the rich lessons that we think should be part of school for every young person."

For those who have left school and feel like they didn't get a proper grasp on financial literacy, it isn't too late.

Setting up basic financial habits like keeping track of income and spending, putting away even tiny amounts into savings, and exploring ways money can make you money in the long run can start at any age.

While things may be tough right now, there is still optimism in the air for many young people.

"Don't stress, because stress doesn't get you anywhere. But be smart and be conscious and really invest your money, not necessarily into investments, but into things that matter," Elijah says.

Vanessa says, "As long as you're committed to the bit, that's what I say, everything will work out. And stress is the biggest killer. So, if you're stressing, it's not going to help at all."

Lachlan, 21, reckons the key can be as simple as just having a plan. "Know what you're doing and stick to it. That's it."