Counting the cost of living – The impact of financial stress on young people report.

Orygen and Mission Australia have released the Counting the cost of living – The impact of financial stress on young people report.  #

Using the data from nearly 20,000 responses to Mission Australia’s Youth Survey in 2023, this report examines the experiences of young people who have experienced financial stress over the past year. Key findings include:

• One in five young people who responded to the survey reported having experienced financial stress (including financial hardships and/or concerns about financial security).

• Young people from marginalised groups are more likely to experience financial stress. This includes those identifying as gender diverse, female, Indigenous, culturally and linguistically diverse (CALD), and/or living with disabilities.

• Young people experiencing financial stress reported feeling less confident about achieving their educational and career goals and anticipated more barriers to achieving these goals.

• They were also more likely to face housing instability, poor mental health, an increased need to work while studying and difficulties in accessing supports.

The findings highlight the complexity of financial stress for young people, shaped by various social, economic, and structural factors. With a multifaceted approach we can address these challenges, with policies that focus on removing structural inequities and improving access to education, healthcare, and employment for marginalised groups.

Recommendations detailed in the report include:

• Social transition passport: Services Australia and the Department of Education to develop a youth-focused transition passport app to guide young people through financial and social services as they transition into adulthood.

• Increased financial support: Increase JobSeeker and Youth Allowance to $80/day; raise the maximum threshold of Commonwealth Rent Assistance by 60% and review with other rental subsidies.

• Increased youth housing options: Develop a national pool of 15,000 social housing youth tenancies; construct ten 40-unit Youth Foyers over the next three years.

• Improved educational pathways: Increase funding for services that keep financially disadvantaged students engaged in education and on positive post-school pathways.

• Participation in community activities: Prioritise funding for bursaries, scholarships, and fee support to enable young people in financial stress to engage in sports, arts, music and other community activities.

• Connection to support services: Develop accessible, evidence-based online support resources, co-designed with young people, to provide guidance on key issues.

• Further research: Investigate the impact of financial stress on youth mental health and well-being to address rising psychological distress observed in the youth population.

This report has timely information that we hope will inform policy development for young people.