Julie Hare Education editor Nov 7, 2022 – 7.43pm https://www.afr.com/wealth/personal...nsequences-later-report-finds-20221107-p5bw5o Young people who are struggling to keep their head above water financially are far more likely to report being stressed and “stuck in life”, which in turn has negative consequences on personal relationships, mental health and the ability to stay employed, a major new survey has found. Insights from the Australian Youth Barometer say young people’s relationship with money intersects with family matters and employment and that the future is seen by many as chaotic due to the rising cost of living, unaffordable housing and insecure work. Buy now pay later products are used widely by young people, especially those in financial stress. Louie Douvis “The financial experiences of young people are nuanced and deeply connected with other aspects of their lives,” the report says. “Saving, going into debt and experiencing financial difficulties do not happen in isolation but are linked to family, housing, work and wellbeing.” The survey of 500 young people aged between 18 and 24 sought to understand their attitudes and strategies regarding their finances. It found one in four young people reported experiencing financial difficulties often or very often over the past two years. Less than one in five reported not having experienced financial difficulties. It found a startling link between financial stress and poor mental health. Only 38 per cent of people who rated their mental health as very poor saved on a regular basis compared with 75 per cent who rated their mental health as excellent. “So, you’ve got poor mental health as a result of being broke. At the same time you’ve got these conditions that relate to the quality of your relationships, your mental health, your wellbeing and all impacting on your ability to earn and make good financial decisions,” said Lucas Walsh, director of the Centre for Youth Policy and Education Practice at Monash University, who is an author on the report. The report found that living at home helped young people save money, as did having a job, but that didn’t always protect them from experiencing financial difficulties. Nearly 20 per cent of young people who were in paid work still experienced financial difficulties often while those who had experienced unemployment in the past two years were less likely to save than those who had been fully employed, “Unemployment has a scarring effect across age groups. But young people have got the capital or savings in the first place and it has a lag effect when they go back into the workforce. They might have accumulated debts, their spending patterns may have changed but there is a rhythm to earning and security which compounds over time,” Professor Walsh said. Renee Zhang, 23, who is still living at home, considers herself financially literate. She saves on a regular basis, has no credit card debt and uses AfterPay only on an occasional basis. Ms Zhang, who studied business and psychology at university, says she was technically unemployed for a month after being made redundant but had her family and the pay-out to fall back on. “I have a credit card and the reason for getting it was to take advantage of the Qantas points. It wasn’t because I had to borrow money. Last year, I realised I was spending a lot more and I was buying things for the sake of the points rather than needing anything,” she said. With the card paid off and her self-awareness alerted to her spending trends, Ms Zhang says she uses AfterPay on occasion “not because I can’t afford something, but because it’s nice to pay off the price in four chunks rather than in one go”. Not everyone is as self-controlled with the report confirming widespread use of buy now, pay later products with more than half in the survey having used them. The rates of buy now, pay later are significantly higher among those who had experienced financial stress. “Supporting young people to navigate their finances is not just about regulating the financial market or providing financial advice, it is also about activating mechanisms to support people in need and creating housing and work conditions that allow them to prosper financially,” the report says. “If there is no alternative, they will use what is on hand to survive and address their needs. It is not enough to advise against using credit for essentials when credit is the only option.”
WHAT THE HELL is this new "BUY NOW PAY LATER" shit? Back when I was growing up, it was called a credit card. As for people being depressed because they are under financial pressure? Well, YEAH?!? Who the hell pays these people to state the obvious?
It's the ones who have no financial stress that I'd worry about. Imagine a mid career job loss during an economic meltdown with no financial stress experience! Scary
Few have such ability to aware of their self emotional status. Experts coin those who are out of depression as sober i.e. they are the same as drunk. How a drunken person is to know that he or she is drunk. Jesse Livermore committed suicide at the end of his career as a trader. Suicide is often the end result of depression.
It's real simple ... live below your means. No point in working your tail off if your not saving at least 20% of your net income & investing it. Most people are willing slaves to debt & think they have no control over it. Problem is many people are lazy slobs living beyond their means.
%% THAT; explains $46.14 price for C[citigroup] . Its 10x reverse split\ so really its priced @ $4.614 The borrower is[ willing ] slave to the lender\ some lenders cant even do well with willing slave labor.
%% People vary; if i put sugar in my coffee, the sugar spike+ fast down valley following\ may depress me. So i buy black coffee+ skip the sugar buy Honey never did that to me.