New research has revealed money worries are forcing young Australians into increasingly tough choices about health, housing, and their futures.
A new national survey commissioned by customer‑owned banking group P&N (parent of P&N Bank and BCU Bank) has found cost‑of‑living pressures are eroding the wellbeing of young Australians and altering major life decisions.
The “More than Money” survey of 808 Gen Z and Millennial Australians, conducted by Painted Dog Research between 19 May and 9 June 2025, reported that 84 per cent of those polled said that their overall wellbeing had been affected by money concerns and cost‑of‑living and housing pressures.
Almost half (45 per cent) specifically linked their financial worries to a decline in their mental health, highlighting the connection between financial security and psychological wellbeing.
Beyond general anxiety, three in 10 respondents said money pressures were undermining their sleep, concentration, decision making, and self‑esteem.
Almost one in three reported delaying or avoiding visiting a doctor or dentist due to costs, while 29 per cent said they postponed seeing a mental health professional, filling a prescription, or buying health‑related products.
In parallel, 40 per cent had to cut back on essentials such as groceries, transport, and healthcare, with more than a third having stopped contributing to their savings altogether.
P&N Group’s head of virtual banking, Jacob Wrigley, said the research underlined the tightly intertwined nature of financial and mental wellbeing.
“What we’ve uncovered is the difficult reality many young Australians are experiencing, with only 3 per cent of Gen Zs and Millennials feeling they are thriving financially,” he said.
Hustle culture and abandoned milestones
The survey also pointed to a generational mindset shaped by “hustle culture” and shrinking faith in traditional promises of upward mobility.
According to the survey, 78 per cent of young adult respondents believed they now had to work harder to achieve less than their parents did.
Wrigley said the impacts appeared to be particularly acute for Gen Z.
He noted that younger respondents, on average, reported feeling more strain than Millennials, reflecting both the intensity of hustle culture and the scale of the cutbacks.
“Those decisions include deferring long‑standing life milestones. Two in five respondents have already pared back spending on essentials, and one in 10 say they have decided not to have children due to the costs involved,” he said.
“Many have also delayed moving out of the family home, pushing more financial responsibility back onto parents nearing retirement.”
Overwhelmed by money, but hungry for control
Despite the prevalence of money stress, the research revealed a split in how young Australians were responding to their circumstances.
One in five said they were avoiding proactively reviewing and managing their finances altogether.
According to Wrigley, those who were already falling behind were less likely to believe that improving their financial knowledge could make a difference.
At the same time, there were signs of a more proactive cohort emerging.
Close to half of respondents reported frequently reviewing their expenditure or setting “personal money goals” – behaviours Wrigley described as a crucial first step to regaining control.
“The research also shows some positive signs, with close to half of those surveyed reviewing their spending regularly or setting personal money goals, which is the first step to taking control of your finances,” Wrigley said.
Wrigley said over the last five years, he had seen a noticeable shift in what younger Australians were prioritising.
“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,” he said.
A call to make money feel less overwhelming
The research sits within a wider body of Australian and international work linking cost‑of‑living pressures to deteriorating youth mental health and rising scepticism toward institutions.
For customer‑owned institutions like P&N Group, the findings underline both the depth of the challenge and the potential for targeted support.
Wrigley said the group’s focus was on demystifying money and building confidence rather than pretending to have quick fixes.
“We don’t have all the answers, but this research helps us better understand and acknowledge what it’s like being a young person in Australia today,” he said.
He said that more accessible financial education tools could play a meaningful part in easing the strain.
“Our role is to help our customers take control of their money and make banking feel less overwhelming, alongside our broker partners. We’re focused on building real, meaningful relationships and giving our customers the knowledge and confidence to make smarter financial decisions,” he said.
[Related: P&N profits rise as mutual sharpens margins, grows book]
