A new study of Australia’s youth paints a picture of a generation struggling with early debt and delayed independence.
It found young people have a “less linear path to adulthood”, burdened by rising housing and cost-of-living pressures.
The Australian Institute of Family Studies (AIFS) longitudinal report, released today, showed 63 percent of 23-24-year-olds and 53 percent of 19-20-year-olds have non-property debt.
This was most commonly study-related loans, and around half of those with debt reported experiencing some level of debt stress.
Around 30 percent of those surveyed reported financial hardship in the previous year, including going without meals, delaying healthcare or seeking financial help from family and friends.
Around 85 percent of people in the age group were worried about being able to afford a home and 63 percent were still living with their parents.
Longitudinal Study of Australian Children research lead Kirsten Campbell said the findings showed a generation working hard to establish themselves while facing significant financial challenges.
“Young Australians are working, studying and planning for their futures, but many are doing so in a landscape that looks very different to that of previous generations,” Ms Campbell said.
“For many young people, building financial independence now involves balancing multiple demands at once, including education, employment, housing costs and day-to-day living expenses.”
The Longitudinal Study of Australian Children (LSAC) examines the experiences of Australians aged 19-20 and 23-24 as they navigate study, work, housing costs, debt and financial independence.
It showed that among those living independently, 23-24-year-olds renting privately spent an average of 47 percent of their income on rent.
Only eight percent of 23-24-year-olds owned or partly owning a home.
“The report confirms that progress towards financial independence is closely linked to education and employment,” the AIFS said in the statement.
“More than half (55 percent) of 19-20-year-olds were combining work and study as they built qualifications, income and work experience at the same time.
“Yet despite these efforts, financial pressures remained common.”
Around half of those experiencing financial challenges reported needing financial assistance from their parents.
Ms Campbell said a less linear path to adulthood was likely to affect older generations too.
“Our research shows many young people are combining work and study, remaining connected to family support for longer, and taking longer to reach traditional milestones such as home ownership,” she said.
“This also has implications for parents and families who are providing housing or financial support for longer than they anticipated.”
The full report is available here
