Enhancing Financial Literacy Among Youth for a Secure Future

Young Australians are currently facing an uphill battle in achieving financial stability, particularly in the realm of home ownership. Increasing real estate prices have put the dream of owning a home out of reach for many. Last month's statistics highlighted the fact that a typical home deposit in Sydney has surged to nearly $160,000, with this figure soaring above $690,000 in wealthier neighborhoods. The escalating property prices have seen over two-thirds of Sydney suburbs exceed the million-dollar benchmark for home values.

Dishearteningly, the price of an average home in Sydney has seen a seventeen-fold increase over the past four decades which is significantly disproportionate to wage growth. Comparing 1981 data, where the median house price was five times the average full-time income, with 2021 figures where this gap has widened to a staggering fourteen-fold difference, underscores the gravity of the situation. Today, young Australians not only face daunting real estate prices but are also burdened with escalating tertiary education costs and the weight of student loan debt tied to inflation rates.

Adding to these economic challenges, The Australian Taxation Office reports that a significant portion of the population is in a strife with student loans, with a noticeable number of individuals doubting their capacity to ever fully pay off this debt. Furthermore, a new report has revealed that financial worries among the youth have reached record levels, with concerns over the cost of living topping the list of issues for young residents of New South Wales. The harsh economic climate has tangible adverse effects on the youth, impacting their living standards, access to education, and even their dietary habits.

Alarming trends have also emerged, such as young people, including those under 18, increasingly relying on buy now, pay later platforms for essential purchases. The addictive nature of these credit services poses another layer of risk to their financial health. In response, there are calls for more support from the government, particularly in terms of financial education and management. The NSW Advocate for Young People has recommended measures like free public transport and vouchers for groceries and mental health sessions for the younger demographic.

However, on top of these initiatives, there's an emphasis on the importance of integrating financial literacy into the educational fabric. By doing so, it is believed that upcoming generations can be better equipped to navigate their financial futures with confidence. After all, equipping our youth with the tools and knowledge to achieve financial optimism and security is a responsibility we hold, in order to afford them the same opportunities enjoyed by previous generations.

Financial, Literacy, Youth