‘Difficult reality’: Gen Z and millennials feel left behind in the game of life, P&N Bank survey reveals

The adage that hard work and saving guarantees financial security is rapidly evaporating amid the ongoing cost-of-living and housing affordability crises, particularly for gen Z and millennials who say both are taking a heavy toll on their mental health. A survey of the two generations — now aged between 14 and 45 — commissioned by P&N Bank found 84 per cent of respondents believe their wellbeing has been impacted due to money concerns, with almost half reporting an impact on their mental health. Almost one-third said financial pressures are impacting their sleep, decision-making ability, concentration or self-esteem. One in four have cut back on essentials — including groceries, transport, and healthcare — and one in 10 have decided to not have children because of the costs burden. More alarming, one-third have delayed or avoided visiting a doctor or dentist, with 28 per cent facing the same choice when it comes to paying bills. Just 3 per cent feel they are thriving financially. “Without parental help or government aid, it’s impossible to live, let alone study to get a better job,” said one respondent, university student and barista Saxon. “Most people I know would love to own a home, get married, and have kids, but I don’t think that’s realistic anymore unless you’re comfortable financially.” P&N head of virtual banking Jacob Wrigley said “hustle culture” — the idea that non-stop hard work is required to get ahead financially — was putting pressure on young people to constantly work harder and do more. But he said many feel even this isn’t enough, with almost eight in 10 young adults believing they will need to work harder to achieve less than their parents. Despite the lessons of their parents, three in four agree that the idea “anyone can make it if they try hard enough” is now outdated. “One in five young Aussies are avoiding proactively reviewing and managing their finances entirely, finding it too overwhelming or stressful,” Mr Wrigley said. “Worryingly, those falling behind are less likely to believe financial knowledge can improve their mental wellbeing, reflecting a sense of helplessness and less active money management.” Mr Wrigley said the survey uncovered “the difficult reality” facing many young Australians, particularly among older gen Zers. Just seven in 10 respondents aged under 35 said they felt constant pressure to turn their hobbies into income and were constantly chasing work. That fell to 57 per cent of those aged 35 to 44, with those who are struggling financially more likely to feel the need to turn hobbies into income. But despite the gloomy outlook, Mr Wrigley said there was a glimmer of hope, with most respondents agreeing that improving their personal finance knowledge would improve their mental wellbeing. “While these generations have grown up in uncertain times, there seems to be more opportunity for self-education and empowerment to take ownership of financial literacy,” he said. “I can see a change in the younger generation over the last five years, with some seeming to value financial freedom over traditional milestones, such as marriage or buying a home. “Alongside this, social media has normalised having conversations about money and made saving and investing information more accessible and relatable than ever.” The survey results came at the same time it was revealed that millennial and gen Z women consider owning a house less of a priority than men their age, with many citing affordability and not being able to qualify for a mortgage as major barriers, according to data firm Cotality’s sixth annual Women And Property Report. Fewer than 40 per cent of gen Z women consider property ownership highly important, compared with almost half of gen Z men. There was a similar divide among millennials, with 58 per cent of women rating property ownership as highly important, compared with 67 per cent of men. The data suggests affordability pressures could be reshaping long-held aspirations, particularly among younger women who face greater difficulty building the savings needed to enter the property market, Cotality Australia head of research Gerard Burg said.