Younger generations are pushing ahead with investing, side hustles, and flexible housing plans, according to new research from ING.
ING Bank’s 2026 Sense of Us Report – a national study run every three years to track how Australians manage their finances – has found that cost‑of‑living pressures are intense but that many households are responding by changing behaviour rather than abandoning their goals.
ING explained that, after several years of rolling global shocks, Australians are shifting their focus from big‑picture events to the parts of their budget they can actually influence.
“In response, they are focusing on what is within their control, particularly when it comes to personal finances and lifestyle decisions, showing greater self-reliance,” ING said.
Cost of living was ranked as the main obstacle to achieving 2025 financial goals by 83 per cent of respondents, followed by unexpected expenses (49 per cent) and inflation (48 per cent).
Older age groups reported feeling the squeeze most sharply, with 91 per cent of Baby Boomers and 93 per cent of Gen X saying they were affected by the rising cost of living, compared with 79 per cent of Millennials and 69 per cent of Gen Z.
The report also revealed that 82 per cent of Gen Z and 74 per cent of Millennials felt positive about their financial outlook, well above Gen X (52 per cent) and Baby Boomers (49 per cent).
ING linked that relative optimism to practical day‑to‑day money management and highlighted how people were tightening their routines.
“Australians are managing money through repeatable, practical behaviours such as budgeting carefully, seeking value, using loyalty programs, managing subscriptions and juggling multiple apps,” it said.
Investing and super: Younger Australians step up
ING stressed that traditional financial goals had not disappeared but rather were being approached differently.
“The money playbook isn’t broken. But it has evolved. Younger generations surveyed are responding with investment appetite, income diversification and new rules for stability, while older generations are embracing digital money management tools and savings tactics,” ING said.
Thirty per cent of those surveyed said they were likely to invest in shares or ETFs over the next 12 months.
The intent is much stronger among younger respondents, rising to 46 per cent for Gen Z and 43 per cent for Millennials.
About one in five people listed investing as one of their top financial goals for 2026, with the share easing from 24 per cent in March to 19 per cent in April.
When asked why they invest, respondents most commonly pointed to building buffers and growing their nest egg, with maximising income and boosting savings cited by 59 per cent of current investors and 59 per cent of those planning to invest.
Retirement planning is another area where younger cohorts are active.
The report found that 46 per cent of Gen Z and 47 per cent of Millennials were making higher contributions to their superannuation, compared with 36 per cent of Gen X and only 16 per cent of Baby Boomers.
Side hustles and housing: New paths to old goals
One of the clearest behavioural shifts sits on the income side of the ledger.
ING’s data showed that 12 per cent of Australians have a goal to start a side hustle or small business in the next year.
The entrepreneurial streak is strongest among Millennials, 19 per cent of whom plan to launch a side enterprise, followed by 15 per cent of Gen Z, 10 per cent of Gen X, and just 3 per cent of Baby Boomers.
Housing aspirations are also being reshaped, rather than abandoned.
ING noted that younger respondents still see owning property as central to their long‑term plans and are reluctant to resign themselves to permanent renting.
The bank emphasised that home ownership remained a core ambition but that rising prices and higher borrowing costs were forcing different tactics.
“Property ownership still holds a firm place as a major goal as they actively build their future. But while home ownership remains strong overall, the rising costs are changing timelines and forcing alternative approaches,” the bank said.
In practical terms, one in three Australians (34 per cent) intends to change their living situation over the next 12–24 months.
Of those, 10 per cent plan to move into a rental property, 7 per cent expect to buy a home in their own name, another 7 per cent are looking to buy with family, and 4 per cent plan to rentvest – renting in one location while owning a property elsewhere.
[Related: APRA says banks and borrowers can ride out downturn]
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