Spotlight – Young Australians' financial stress and financial support from parents

What young Australians are experiencing financially

As young Australians move through early adulthood, many are taking on greater financial responsibility while facing rising living costs, insecure work and housing pressures.¹ Everyday expenses, education costs and debt repayments are shaping major life choices about study, work, health and independence.² These issues affect a substantial number of young adults at a critical life stage – when they are laying down financial foundations.

Navigating financial independence amid early adulthood pressures

Public narratives often frame early adulthood as a period of growing financial independence. However, the LSAC Wave 10 data suggest that this phase of life can be difficult for many young people, particularly when education, workforce entry and housing costs overlap.

• For young people in both age groups (19–20 and 23–24 years), greater financial independence comes with higher debt exposure and financial stress as many balance competing demands such as funding education, establishing themselves in the workforce and meeting housing costs.
• Many young people are navigating these increasing financial obligations without adequate financial supports.

These findings suggest that many young people may benefit from better support across education, work and housing transitions, particularly where they are managing debt, meeting everyday costs and establishing financial independence without reliable family financial support.

Non-property debt and debt stress

Not all debt is the same. Young people may hold non-property debt for various reasons, including financing education, purchasing a vehicle or covering everyday expenses. Study loans are generally considered an investment in future qualifications and are repaid according to income, whereas credit card debt and other consumer borrowing may create more immediate financial pressures.

The findings suggest that debt, particularly from education, is a common part of the transition to adulthood and, for some young people, can be a source of financial stress and concern:

• Debt becomes more common as young people age, with almost two-thirds of 23–24 year olds reporting non-property debt, compared with just over half of 19–20 year olds (63% vs 53%).
• Education is the main source of debt for many young people, with around two-thirds of those holding non-property debt reporting study-related loans (Figure 1a).
• Debt is not always experienced as manageable. Around half of young people with non-property debt reported experiencing some level of debt stress (Figure 1b).
• For a smaller group, debt was a significant concern, with 10% of 19–20 year olds and 15% of 23–24 year olds reporting that they were ‘quite a bit’ or ‘very much’ worried about their debt.

Figure 1a: Type of debt among young people with any non-property related debt aged 19–20 and 23–24 years in 2023–24

Notes: 19–20 years (n = 1,389) and 23–24 years (n = 1,519)
Source: LSAC Wave 10

Figure 1b: Prevalence of debt stress among young people aged 19–20 and 23–24 years in 2023–24

Notes: 19–20 years (n = 1,389) and 23–24 years (n = 1,519)
Source: LSAC Wave 10

Almost one-third experience financial hardship, with some groups more at risk

Financial hardship was common, with around 3 in 10 young people (29%) in both age groups experiencing at least one form of hardship in the past year. For a notable minority, this was not an isolated experience.

• Two or more forms of hardship were experienced by 13% of those aged 19–20 years and 17% of those aged 23–24 years.
• Financial hardship often involved going without necessities (e.g. meals), seeking help from family or friends, or selling possessions.
• Young people living independently (away from parents and paying rent or a mortgage) reported substantially higher levels of financial hardship across most indicators, particularly needing financial help and going without essentials such as meals and health care (Figure 2).
• Financial hardship was more common among some groups of young people than others. Across both age groups (19–20 and 23–24 years):
  • Around one-third of young women experienced financial hardship, compared with around one-quarter of young men. These gender differences may be linked to broader employment patterns. LSAC education and employment spotlight findings show that young men are more likely than young women to work longer full-time hours, which may contribute to differences in income and financial security during early adulthood.
  • Financial hardship was particularly high among young non-binary, gender diverse or questioning people (45% at age 19–20 and 69% at age 23–24).
  • Young people with disability or a long-term medical condition were substantially more likely to experience financial hardship than those without (41%–45% compared with 26%–27%).
  • At age 23–24, young people who spoke English as the main language at home were more likely to experience financial hardship than those who spoke another language at home (29% vs 18%).

Together, these findings suggest that financial hardship is a common experience in early adulthood, with higher levels reported by young people living independently, young women and young gender diverse people and young people with disability or long-term medical conditions.

Figure 2: Forms of financial hardships experienced in past 12 months by living arrangements, among young people aged 19–20 and 23–24 years, in 2023–24

Notes: 19–20 years (n = 2,268) and 23–24 years (n = 2,083). ‘Other’ includes ‘Living away from parents and occupied rent free’ and ‘None of these’.
Source: LSAC Wave 10

Parents remain a key source of support but not for everyone

The findings also show that parental financial support remains important into early adulthood:

• Around half of young people in both age groups reported needing financial assistance from parents in the previous year.
• In most cases, parents were able to meet these needs completely or mostly (Figure 3).

While parental support can help young people navigate short-term financial pressures, it also highlights inequalities in access to informal support. Young people without access to these supports may be more exposed to financial stress during the transition to adulthood.

Figure 3: Percentage of parents who meet the needs of young people aged 19–20 and 23–24 years by providing financial assistance

Notes: 19–20 years (n = 1,982) and 23–24 years (n = 1,763)
Source: LSAC Wave 10

Potential next steps with LSAC data

This study examined young people’s financial stress and parental financial supports using Wave 10 data. However, many related and important questions could be investigated with current and future waves of LSAC, including:

• How does receiving financial support from parents at ages 19–20 and 23–24 shape later outcomes in labour force participation, financial wellbeing and mental health?
• How does financial stress in early adulthood affect later health care use and social participation?
• What are the intergenerational factors that shape young people’s financial wellbeing?
• Does receiving government support help young people mitigate financial stress?

¹ Walsh, L., Huynh, T. B., & Deng, Z. (2025). 2025 Australian youth barometer. Monash Centre for Youth Policy and Education Practice (CYPEP), Monash University. doi.org/10.26180/30184270.v2.

² Atalay, K., Silva-Goncalves, J., Stevens, K., & Whelan, S. (2022). Housing and the transition into adulthood: Australian evidence. (Life Course Centre Working Paper 2022-16). Life Course Centre.