The latest youth survey from Mission Australia* revealed that the top three concerns for young people aged 15-19 years are the environment, equity and discrimination, and the economy and financial matters. 15% of young people were personally extremely or very concerned about financial security. Compared to the previous year’s survey, financial issues have surpassed mental health issues for young people in Australia.
Young people face challenges in employment, housing, the cost of living and general finances. More than 50% of young people surveyed identified financial security as a personal concern. Financial issues were also noted as a barrier to achieving study and work goals.
The financial stress associated with high living expenses can create significant challenges that affect the work and study goals for young Australians such as:
- Distraction and reduced focus: concerns about meeting basic living expenses (including rent, utilities and groceries) can reduce a young person’s ability to focus on their academic and work responsibilities.
- Impact on mental health: financial worries can lead to high levels of stress and anxiety. Mental health issues, if left unaddressed, can negatively impact a person’s overall wellbeing, making it difficult to concentrate on academic and work pursuits.
- Limited resources for education: young people may struggle to allocate sufficient resources for their education when faced with high living costs. They may need to take on part-time work to cover expenses, which can potentially impact study and academic performance.
- An increased pressure to prioritise immediate needs: the demands of needing to cover immediate living expenses may force young people to prioritise short-term financial concerns over long-term educational or career goals.
- Reduced participation in extracurricular activities: engaging in extracurricular activities, internships and volunteering opportunities can help build a well-rounded resume and practical experience. Financial challenges can limit a young person’s ability to participate in these areas and potentially impact future career prospects.
- Delaying or abandoning education: this can have long-term consequences on a person’s career trajectory and earning potential (also possibly still leaving them with any accumulated educational loan debt).
- Strain on work/life balance: balancing various commitments is already challenging. Young people many find themselves working longer hours to make ends meet, leading to fatigue, decreased social interactions, and compromising their ability to perform well academically.
- Impact on career choices: some young people may choose immediate employment opportunities that provide a steady income, even if they don’t align with their long-term career goals or interests.
Addressing these challenges as a whole would require a comprehensive approach, including better access to financial literacy and support services, and changes to current policies aimed at lessening the financial burden on the young people of Australia both now and in the future.
