Despite the rising cost of living, and contrary to popular belief, a new study from Afterpay reveals that Zillennials (Gen Z and Millennials) are one of the most financially savvy generations with almost three quarters, seventy per cent (70%) saying they use thrifty saving techniques to balance spending priorities whilst keeping up with their lifestyles even with inflation.
From sharing Netflix logins and using marketplaces, to avoiding spending on café coffees and making clever investment decisions the Afterpay Cost of Culture Report, reveals how the next generation are navigating the ever-shifting role culture – which we’re defining as ‘societies’ pursuit of new trends, innovation, experiences & wellbeing, has on our lives, & back pockets.
How are Zillennials savvy and saving?
Whilst four in five (81%) of Aussies enjoy dining out with friends, more than one-third (37%) are ordering the cheaper options on the menu so they don’t sacrifice dining out altogether.
They also share their subscription logins with friends and family (73%), avoid using credit cards (35%), buy items second hand or on sale (34%), use buy now pay later services such as Afterpay to budget (29%), and avoid buying café coffees twenty nine per cent (29%).
In fact, three quarters seventy five per cent (75%) of next gen Aussies reveal they get more enjoyment from saving money than spending it on the latest fads and trends.
How is inflation influencing this?
Having experienced the impacts of the GFC, lived through Australia’s first recession in 30 years, and now inflation, Zillennials are more financially resilient than sceptics may think, however it has affected the mindset of the next generation and probably the one after.
Although (26%) prioritise savings first and then budget with what they have left over, almost 2 in 5 (39%) are worried they don’t get paid enough to cover expenses if inflation continues.
Since the rise of blockchain, cryptocurrency and NFTs, the perception of wealth has shifted for Zillennials. Aware of the finances required to own a property, the next gen are looking at other ways to invest. One in five (21%) have invested in cryptocurrency, which is more than sneaker collections (20%), stocks (18%), property (11%), and luxury handbags (8%).
With a volatile job market, (22%) of young Aussies are choosing to upskill via courses or tertiary education to future proof themselves. In addition, if they’re not ‘quiet quitting’ (19%), young Aussies (27%) are looking for jobs that allow them to work from anywhere in the world.
What part does mental health play in all this?
In the 2021 Afterpay Lockdown Liberation Study, over 2 in 5 (45%) Zillennials said they believed prioritising mental health was the most important lesson they took out of lockdowns.
This year, almost two thirds, sixty four per cent (64%) of young Aussies said they are spending more on their mental health this year than last with the majority eighty nine per cent (89%) agreeing that investing in their mental health long term is important.
Katrina Konstas, EVP, Country Manager at Afterpay, said, “It’s been 12 months since we’ve been enjoying getting back into the things we love most – spending time with friends at restaurants, seeing live music, and returning to travel. But now many Australians are faced with a new challenge of watching their spending in this current economic climate.
“The Afterpay Cost of Culture Study delves into how next gen Aussies are balancing the competing priorities of the increasing cost of living and keeping up with lifestyles. The findings show the thrifty techniques the next generation are using to maintain a balanced budget, showing why they really are some of the most financially savvy generations yet.”
What are the other key findings the research?
- Sticking to their financial guns – 3 in 4 or seventy six per cent (76%) of next gen Aussies say they don’t let culture sway them from their own financial goals
- Scrolling marketplace – more than three quarters seventy six per cent(76%) of Zillennials reveal they use marketplace to shop, and a quarter twenty seven per cent (27%) always scroll on marketplaces first when items cost more than $200.
- Hobbies first – The majority (85%) get enjoyment out of investing in their hobbies over buying the latest ‘must-have’ item and dining out with friends.
Afterpay is available in-store and online to help Aussies budget for everything in their life from fashion and health, to homewares and appliances, to travel and experiences. Customers can pay off purchases in four, fortnightly instalments without incurring interest ever.