- 2 in 3 younger Australians say a rising cost of living is their single biggest cause of stress
- More than half of 18-29-year-olds had some form of financial hardship in the last three months, financial stress rising among 30-49-year-olds over concerns about kids' education and retirement
- Working with Good Shepherd, in the last financial year NAB provided over 38,000 No Interest Loans, 15% of those for young people aged 18-29 to help them pay for unplanned expenses
New NAB Economics data released today reveals younger Australians are feeling more financially stressed than their parents and grandparents and are more concerned over rising living costs than older age groups.
The financial challenges facing Gen Z and Millennials, as well as younger Gen X Australians include:
- Cost of living concerns: more than two thirds (67%) of Australians under the age of 50 say a rising cost of living is their biggest cause of stress, compared to less than half of people over 65
- Hardship higher the younger you are: 55% of 18-29-year-olds have experienced some form of financial hardship in the last three months including not having enough money for an emergency
- Rising financial stress: younger Australians, particularly those aged 30-49, are experiencing heightened financial stress over a rising cost of living, managing day-to-day expenses, paying for kids' education, and funding their retirement
- Life pressures mounting: 6 in 10 young Australians sought professional help for their emotions, stress or mental health in the past year
NAB Head of Financial Health and Vulnerability Mike Chambers said the insights highlighted just how critical it is for banks to support younger Australians through the current economic climate.
"The rising cost of living is impacting everyone but it's younger Australians who seem to be copping the brunt of increasing expenses on everything from groceries to utility bills to petrol," Mr Chambers said.
"Younger Australians are often in more insecure work, have lower savings buffers, are facing rising rent or they may have children leading to with higher grocery costs.
"We know these groups are amongst the most likely to make cutbacks on food delivery services, trips to the movies, eating out at restaurants, or travel so they can prioritise their spending on what they value.
"We've proactively reached out to more than half a million NAB customers to check in on their financial wellbeing and, while they're resilient and broadly okay, it's important to ensure the right support, tools and education are there for individual customers on a case-by-case basis.
"We're also seeing young people becoming even more engaged with their finances, embracing digital budgeting and savings tools and getting greater insights into their spending through their banking apps.
NAB Assist helps more than 1,000 customers a day who have been impacted financially by a life event, often through no fault of their own.
"More than 90% of customers who speak to NAB Assist early are back on their feet financially within 90 days. NAB Assist can provide specialised support including help pausing, reducing, or restructuring payments."
NAB provided $47 million in capital for No Interest Loans last year which available for a wide range of purposes, such as whitegoods, medical and education expenses, and car repairs and registration, with loans up to $2,000. Loans up to $3,000 are available for housing expenses, such as bond, rent-in-advance and moving expenses.
Good Shepherd Director, Client Services, Dr Dave Vicary said this is helping communities across Australia afford essential goods and services.
"Sadly, we're seeing young people experiencing increasing financial hardship as cost-of-living pressures continue to rise," Dr Vicary said.
"In the last financial year, 15% of all NILs loans were received by young people aged 18-29, with 5% of their loans being used for housing-related expenses such as bond, rent in advance and moving costs.
"It's getting harder for young people to make ends meet. NILs is a safe and affordable way to manage unplanned expenses."
The details
- Insights from NAB Economics Q2 2023 Financial Hardship survey and Q2 2023 Australian Wellbeing Survey of around 2,000 Australians.
- NAB has partnered with Good Shepherd Australia New Zealand since 2003 to provide more than $413 million in low and no interest loans to more than 337,000 Australians on lower incomes.
- No Interest Loans are a safe and affordable credit option for low and middle income earners to help pay for household essentials, medical and education expenses with loans of up to $2,000.
- Income eligibility and affordability criteria apply which are available at nils.com.au.
