Financial Struggles of Young Australians: Instagram Lifestyles, Expensive Bills, and Stationary Incomes Leading to Financial Ruin
Financial expert Rebecca Pike's insights shed light on why today's younger workers are grappling with financial difficulties that older generations, like the baby boomers, seemingly overcame with ease. They're dealing with escalating costs and unrealistic lifestyle expectations, creating a perfect storm of financial hardship.
Pike explains that younger Australians aren't receiving substantial wage increases to match the pressure they face on living costs.
"It's tough," she tells Daily Mail Australia, "Companies are keeping the profits for their own use rather than supporting their employees with wage increases." To make matters worse, the millennial/Gen-Z workers are the ones toiling away to cover their daily necessities and bills.
"Wage growth hasn't kept pace with the rise in prices," Pike says.
She goes on to discuss the detrimental effects of the cost-of-living crisis on employment, explaining that the situation is likely to worsen for those holding jobs, whether they're renting or working to pay off a mortgage.
Adding to the financial woes is the 'Instagram phenomenon' – artificially crafted lifestyle expectations propagated on social media platforms like Instagram, TikTok, and Facebook. These digital portrayals further pile on the pressure to match or conform to idealized lifestyles, which are out of reach for many.
"Social media tends to show a certain life, leaving you feeling left out if you don't have that thing," Pike notes.
On a positive note, Commonwealth Bank predicts the RBA cash rate to hit an all-time low since March 2023, providing a glimmer of hope for those struggling with a mortgage. However, the struggle to save during a cost-of-living crisis remains a significant hurdle.
"The cost of living has been a significant issue for Australians for the past few years," Pike remarks, "With expenses like rent and groceries escalating, it's getting harder, and your money doesn't stretch as far."
A recent analysis reveals a staggering 7.6% increase in fruit and vegetable prices over the last year. Yet, on a silver lining, gas prices have fallen by 7.6%, leading to cheaper fuel in most capital cities, costing under $1.85 a litre for unleaded fuel. Moreover, electricity bills have seen a 9.6% drop thanks to federal government rebates that will be extended until the end of 2025.
Despite these fluctuations, a cost-of-living crisis looms large over younger Australians, who grapple with rising expenses, stagnant wages, and unrealistic lifestyle expectations serving as formidable financial hurdles.
- Baby boomers seem to have easily overcome financial struggles compared to today's younger workers, as revealed by financial expert Rebecca Pike.
- Pike attributes this difference to the escalating costs and unrealistic lifestyle expectations faced by Gen Y and Z Australians.
- Pike also points out that younger Australians aren't receiving substantial wage increases to match the rising costs of living.
- The millennial/Gen-Z workers are often burdened with the responsibility of covering their daily necessities and bills.
- Pike notes the detrimental effects of the cost-of-living crisis on employment, suggesting that the situation will likely worsen for those holding jobs.
- She warns that social media, with its artificially crafted lifestyle expectations, further pressures young Australians to match or conform to idealized lifestyles that are out of reach for many.
