By now it should be no surprise that young Australians are doing it tough. In the post-Covid era, as the cost-of-living crisis tightens its grip on the nation, intergenerational wealth inequality has significantly worsened, and today’s young Australians are now poised to be the first generation worse off than their parents.

A recent study into the spending habits of young people confirms how stark the divide has become. The CommBank iQ Cost of Living Insights report reveals Australians in their mid-to-late 20s have dramatically cut back their spending compared with last year – far more than any other age group. Meanwhile, those over 65 are spending at rates surpassing inflation on travel, retail and eating out, cutting back only on charitable donations.

This economic disparity is now well-documented. Last year, both qualitative and quantitative evidence showed young people were not only forgoing discretionary items such as dining out or concerts but also cutting back on essentials such as food, fuel, utilities and insurance. Many younger Australians have also taken more financial actions to rein in spending such as negotiating bills and postponing major purchases.

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