Younger Tasmanians resilient and optimistic in face of economic challenges
The Financial Wellbeing in Tasmania Report released today, reveals Tasmanians under 35 are taking the lead in preparing for an economic recovery, demonstrating financial resilience and optimism.
The second Financial Wellbeing in Tasmania Report for 2024 shows younger Tasmanians are willing to adjust their spending and search out ways of earning more to achieve financial goals such as financial security and home ownership.
MyState Bank CEO Brett Morgan said the report found that one-third of Tasmanians under the age of 35 say they are financially better off now than they were a year ago. “The findings show that while most younger people remain concerned about rising living costs, they are optimistic about the future and actively working to improve their situation,” Mr Morgan said. “Younger Tasmanians are taking proactive steps to manage their money, including cutting back on discretionary spending and taking on extra work shifts.
“About one-third of this group expect their personal income to improve over the next year, and 20% of Tasmanians over 35 share this optimism.”
Home Base (formally Colony 47) CEO Dianne Underwood said the report challenged common prejudices about the willingness of younger people to work hard to overcome financial adversity and achieve their goals.
“The tired tropes about generation z choosing lattes and avocado on toast over home ownership are as offensive as they are wrong,” Ms Underwood said.
“This report shows that the financial challenges facing young people haven’t gone away but they are demonstrating incredible resilience and willingness to adapt.”
“Younger people are working more, spending less and saving to achieve their goals, but there remains a limit on how much is within their control when essentials such as rent, groceries and petrol prices keep going up.”
“We need to stop the simplistic blame game and focus on policy solutions that address the structural disadvantages in our community.”
The biannual financial wellbeing report provides a snapshot of the economic and social wellbeing of Tasmanians, with the purpose of shedding light on their challenges and aspirations in the current year and year ahead.
MyState Bank CEO Brett Morgan says understanding the economic and social pressures and aspirations facing Tasmanians is crucial for business, policy makers and community groups.
“Inflation and interest rates have put real pressure on many in the community particularly those on fixed incomes, but it’s pleasing to see that despite these challenges, Tasmanians remain optimistic and are planning for the future.”
Home Base and MyState are committed to improving and maintaining the good financial health of Tasmanians so that we can help the community with the rising cost of living, avoid financial stress, and achieve important financial and life goals.
Home Base and MyState Bank launched the JumpStart program to address the youth housing crisis. This pilot program provides furnished houses and subsidised rent to eligible Tasmanians aged between 18 and 25 for up to 3 years. It aims to give young Tasmanians the opportunity to build a private rental history and develop the skills to live independently.
Key Findings:
- A third of Tasmanians under 35 report being financially better off than they were 12 months ago, compared to just a fifth of those over 35.
- Younger Tasmanians are significantly more optimistic about their financial future, with a positive net outlook for the next 12 months.
- About one-third of young Tasmanians expect their personal income to improve over the next year, and 20% of Tasmanians over 35 share this optimism.
- Nearly one third of young people under 35 are preparing for major purchases like property in the next year.
Cost of Living Insights:
- 75% of younger Tasmanians are moderately to extremely concerned about the cost of living, but are more likely to change spending and earning capacity to meet the challenge.
- Younger Tasmanians are actively seeking ways to save money, including cutting back on essentials and taking additional work shifts, at a rate three times higher than those over 35.
- Younger Tasmanians are reducing spending across all discretionary categories and are more likely to pay more for essentials like groceries and fuel.
- Younger Tasmanians are more likely to save for international travel compared to older cohorts.
Housing Market Attitudes:
- Interest rate increases have led to significant financial stress for Tasmanians under 35, compared to those over 35.
- While all Tasmanians have similar overall sentiments about the housing market, those under 35 find it more challenging to perceive it as a 'good time to buy’, despite this, they are aspiring to own a property.
Employment and Training Insights:
- 25% of Tasmanians under 35 are currently engaged in higher education or training, with an additional 20% planning to undertake such studies in the next four years. 5% of Tasmanians over 35 also have intentions to engage.
