Failure to launch: Young Australians struggle with ‘financial adulting’

Only two-thirds of Australians under the age of 25 believe they are financially responsible with money, while one in 10 Australians doesn’t get their financial act together until the age of 30, new research has shown.

Research conducted by “buy now, pay later” (BNPL) provider OpenPay through a September 2020 survey highlights that the definition of ‘financial adulting’ is, for almost half of Aussies, simply spending less money than you make each month.

According to the survey results, a vast majority of young Australians do not see investing in property, shares or having a home loan as making them financially responsible.

With around two-thirds of people currently feeling like they are responsible with their money, the survey looked to explore what prompts Australians to start taking their budget seriously.

The humdrum of paying for household bills, groceries and car insurance – the realities of adulting – made over two-fifths of respondents start thinking about being more responsible with their finances.

“There’s a steep curve to adulting. It feels like one day like the world is your oyster and the next you’re debating how cost-effective it is to get private health insurance to pay for your new glasses, or coming to terms with an unexpected vet bill for your cavoodle,” said Mr Eidel.

“Part of financial adulting is managing your cash flow, making sure you have enough money at the end of each month to cover your costs, but also being able to afford the things that bring you joy.”

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Source: Failure to launch: Young Australians struggle with ‘financial adulting’ | nestegg