- Living costs exceed inflation
A financial expert explains why young Australians find it financially harder than baby boomers to generate – rising costs and unrealistic lifestyle expectations play a big role.
Finder Money expert Rebecca Pike said it is unlikely that young workers will get a decent salary to keep up with the pressure of living costs.
She told Daily Mail Australia that there is clearly some kind of generational difference.
“It feels like any kind of profit business does is to keep the company growing and invest in the business, rather than supporting the employees who have increased their wages.
“They are those who have to pay to go to the office and have a meal on the table and pay all the bills. This is difficult.
“Most people’s wages are not growing at the same price.”
Ms. Parker said the cost of a living crisis is only worse for those who have jobs, those who rent or pay off their mortgages.
“We know prices keep rising, so it can be harder,” she said.
“We know that over the past few years, the cost of living has been a huge pain point for Australians,” Ms. Parker said.
“With things like rent and groceries going up, it’s hard, your money won’t stretch.”
The complex thing is the “lifestyle expectations” seen on Instagram, Tiktok and Facebook.
What complicates things about young Australians is the elaborate “lifestyle expectations” on Instagram, Tiktok and Facebook. Pictured: Young Australians at the music festival
“Social media tends to show you a certain life you should live, and if you don’t have that thing, it makes you feel abandoned and keeps putting ads on you,” Ms. Parker said.
“There is still a lot to do in the world when it comes to going out and on holidays.”
But for good news that young Australians are struggling with mortgage loans, Commonwealth Bank believes that Australian banks’ cash rates have dropped to 3.35% for the first time since March 2023.
Gareth Aird, head of Australian economics at CBA, said softer consumer spending could weaken economic growth – as measured by GDP.
“Recent consumption data and the softness of downside risks in the global economy have led to a small revision of our GDP profile in 2025,” he said.
Even if the speed is slowed down, saving remains a challenge during the cost of living crisis.
“We know that over the past few years, the cost of living has been a huge pain point for Australians,” Ms. Parker said.
“With things like rent and groceries going up, it’s hard, your money won’t stretch.”
Costs, wages and Instagram Dreams – Young Australians have been chasing a lifestyle that costs more than it pays
New data shows that fruit and vegetable prices have risen 7.6% over the past year.
Gasoline prices, on the other hand, have fallen 7.6% over the past year, leaving motorists in capital cities generally paying less than $1.85 per liter for unleaded fuel.
Over the past year, the electricity bill has also dropped by 9.6% as the federal government’s quarterly rebate was $75, which will be extended until the end of 2025.
