Report shows young Australians struggling financially

SYDNEY, Nov. 8 (Xinhua) -- A new report from Australia's Monash University found more than a quarter of young people in the country have experienced financial difficulties during the COVID-19 pandemic, and the pandemic and fintech also have changed their way of financial management.

The Young people's financial strategies report, released on Tuesday, was based on a comprehensive survey that examined the views of more than 500 Australians aged 18-24 over the previous two years.

It found 25.2 percent reported experiencing financial difficulties while only 18.2 percent reported never experiencing financial difficulties.

The report found living in family home would help young people better manage their financial well-being as 22.6 percent of those who lived in their family home experienced financial difficulties often or very often compared to more than a third of those who lived independently.

The report also revealed that job losses during the pandemic, lack of affordable housing and the rapid rise of platforms like cryptocurrency and "buy now, pay later" (BNPL) schemes, have changed the financial landscape for young Australians, and not necessarily in a good way.

According to the report, around half thought BNPL has a negative effect on their financial behavior and 76 percent of those who experienced financial difficulties were more likely to use BNPL.

Co-author of the report and director of the Monash Centre for Youth Practice and Education Policy Professor Lucas Walsh said changes to the financial landscape for young people matter because their financial experiences are deeply interconnected with other aspects of their lives.

"A quarter of young people told us they are struggling with debt, and this was before recent inflationary pressures and rises in the cost of living. Our report shows that this is having a serious effect on their mental health, which we know to be at crisis levels," he said.

"Saving, going into debt, and experiencing financial difficulties do not happen in isolation but are linked to family, housing, work and wellbeing."

Lead author of the report, Beatriz Gallo Cordoba from Monash University's School of Education Culture and Society, said young people need access to better digital financial literacy support to help them adapt to the new realities with an ever-changing world of online financial products and services.

"Schools can play a better role in providing all students access to quality and up-to-date financial education, especially those students who lack family support. This includes basic financial literacy and numeracy and working knowledge of financial products," she said.