A financial expert has explained why younger Australians are finding it harder financially than the baby boomer generation – with rising costs and unrealistic lifestyle expectations playing a big role.
Finder money expert Rebecca Pike said younger workers were less likely to be getting decent pay rises to keep pace with cost-of-living pressures.
‘There’s obviously kind of generational differences in that as well,’ she told Daily Mail Australia.
‘It feels like any kind of profit businesses make is going towards keeping the company going and investing back into the business rather than supporting employees with wage increases.
‘They’re the ones having to pay to get to the office and keep meals on the table and pay all their bills. It’s just tough.
‘Most people’s wages haven’t grown at the same rate the price of things have.’
Ms Pike said the cost of living crisis was only likely to get worse for those with a job, either renting or paying off a mortgage.
‘We know that prices just keep rising so it may just get tougher,’ she said.
Complicating matters for young Aussies are ‘lifestyle expectations’ crafted on Instagram, TikTok, and Facebook. Pictured: Young Aussies at a music festival
‘We know that cost of living has been a big pain point for Australians over the last few years.
‘With things like rent and groceries going up, it’s just harder, your money doesn’t stretch as far.’
Complicating matters are ‘lifestyle expectations’ seen on Instagram, TikTok, and Facebook.
‘Social media tends to show you a certain life that you should be living, making you feel left out if you don’t have that thing, and constantly throwing ads at you,’ Ms Pike said.
‘There’s just so much more going on in the world now in terms of going out and going on holidays.’
But in good news for young Aussies struggling with a mortgage, the Commonwealth Bank sees the RBA cash rate falling to 3.35 per cent for the first time since March 2023.
CBA’s head of Australian economics Gareth Aird said softer consumer spending was likely to weaken economic growth – as measured in gross domestic product.
‘The recent softness in spending data coupled with downside risks to the global economy have resulted in us making a small downward revision to our GDP profile in 2025,’ he said.
Rising costs, flat wages, and Instagram dreams – young Aussies are stuck chasing a lifestyle that costs more than it pays
Even with rate cuts on the horizon, saving was still a challenge during a cost-of-living crisis.
‘We know that cost of living has been a big pain point for Australians over the last few years,’ Ms Pike said.
‘With things like rent and groceries going up, it’s just harder, your money doesn’t stretch as far.’
Underlying and headline levels of inflation are both within the Reserve Bank’s two to three per cent target for the first time since 2021.
But employee living costs soared by 3.4 per cent in the year to March.
In the shopping basket, fruit and vegetable prices have risen by 7.6 per cent.
On the flip side, petrol prices have fallen by 7.6 per cent during the past year, which has seen motorists in capital cities typically pay less than $1.85 a litre for unleaded fuel.
Electricity bills have also fallen by 9.6 per cent during the past year thanks to $75 quarterly rebates from the federal government which are being extended until the end of 2025.
