Why financial independence is becoming harder for young Australians

New research from Growing Up in Australia explores the financial experiences of young Australians. In 3 spotlight reports, we examine their: 

• employment and education
• financial stress and parental support
• living arrangements and housing affordability.

Together, the findings give a broad picture of what financial independence looks like for young people today.

Education and employment pathways are changing

Most young Australians are actively building their futures through study and work. More than half of 19–20 year olds and around 30% of 23–24 year olds combined study and paid work as they gained qualifications, work experience and income.

The findings show that education and employment often overlap during early adulthood, with many young people balancing study and work at the same time.

Most young people reported being satisfied with their jobs. However, many were less satisfied with their pay, highlighting some of the financial pressures that can accompany the transition to adulthood.

Parental support is important

One of the clearest findings from the research is the important role parents continue to play in supporting young people through early adulthood.

More than 60% of young people surveyed were living with their parents, either rent-free or while paying rent. Around half also reported receiving financial assistance from their parents in the previous year.

For many young people, this support acts as an important buffer against housing and living costs. Whether through affordable housing, help with education expenses or assistance with everyday bills, family support can ease some of the financial pressures associated with becoming independent.

However, not all young people have access to the same support. The research suggests that family support helps some young people manage financial pressures. Those without access to this support may face greater challenges financially.

Watch: Financial experiences of young people

In this short video, AIFS Research Manager and lead author Dr Neha Swami discusses some of the key findings from the financial experiences spotlight series. She highlights the important role parents play in supporting young people through early adulthood.

Housing affordability is a major concern

Concern about housing affordability was widespread, with around 85% of young people surveyed worried about their ability to afford a home.

For young people living independently, housing costs were often substantial. On average, 19–20 year olds renting privately spent 38% of their gross income on rent, while 23–24 year olds spent 47%.

Home ownership was low, with only 8% of 23–24 year olds and 1% of 19–20 year olds owning or partly owning a home.

These findings suggest that housing affordability plays an important role in shaping young people's pathways to independent living.

Financial hardship is not equally distributed

Young people living away from their parents were more likely to experience financial hardship. This suggests that the costs of establishing an independent home, particularly for those with no alternative, can place considerable strain on already stretched budgets.

A consistent finding across the research is that housing pressure and financial hardship were more common among some groups of young people. These include young women, gender-diverse young people, young people with disability or long-term health conditions, and those living independently from their parents.

What do these findings tell us?

Many young Australians are actively building their futures through study and work. However, housing costs, financial pressures and unequal access to family support can make the pathway to financial independence more challenging for some.

The findings suggest that financial independence depends on more than individual choices. Access to affordable housing, stable employment, support from family and other support systems can all shape how young people experience the transition to adulthood.

Explore the Financial Experiences of Young People spotlight series to learn more about young Australians' experiences of work, study, housing and financial wellbeing.