MyState Bank, Home Base Financial Wellbeing report finds young Tasmanians optimistic about future

‘Tired tropes about Gen Z choosing lattes and avocado on toast over home ownership are as offensive as they are wrong.’

MyState CEO Brett Morgan, together with Home Base CEO Dianne Underwood, has launched the two organisations’ second Financial Wellbeing report. Picture: Linda Higginson.

Young Tasmanians are surprisingly optimistic about their future financial position in the face of cost-of-living pressures and a lack of affordable housing, according to a new report.

The second Financial Wellbeing report from MyState Bank and Home Base (formerly Colony47), released on Thursday, found that young people had a rosy view of the year ahead, with a positive net outlook on the next 12 months.

The report is intended to be a snapshot of Tasmanians’ economic and social wellbeing, with the latest publication showing that one third of Tasmanians under the age of 35 were better off financially than they were a year ago, while just a fifth of people over the age of 35 reported being in the same position.

Young homeowner Chloe Mead. Picture: Linda Higginson

Furthermore, a third of people under 35 and a fifth of over-35s expected their personal income to improve over the coming 12 months.

However, 75 per cent of younger Tasmanians were moderately to extremely concerned about the cost of living, the report found.

But they were more likely to adjust their spending habits and improve their earning capacity to overcome financial obstacles.

For Chloe Mead, a 20-year-old teacher’s assistant, money is a constant source of anxiety.

But she has resolved to be strict on spending and recently managed to buy her first property.

“It’s still quite scary every day and every week is difficult but I know that in the long run, it’ll be worth it for my future,” she said of the purchase.

“I set aside money every pay, I put it into a long-term savings account, as well as now going into my mortgage account. I don’t go out and just spend [money] anywhere and everywhere.”

MyState Bank CEO Brett Morgan said the Financial Wellbeing report showed young people were “actively working to improve their situation”.

“Younger Tasmanians are taking proactive steps to manage their money, including cutting back on discretionary spending and taking on extra work shifts,” he said.

According to Home Base CEO Dianne Underwood, the findings were in stark contrast to prevailing views about young people’s attitudes towards money.

Home Base CEO Dianne Underwood. Picture: Chris Kidd

“The tired tropes about Generation Z choosing lattes and avocado on toast over home ownership are as offensive as they are wrong,” she said.

“This report shows that the financial challenges facing young people haven’t gone away but they are demonstrating incredible resilience and willingness to adapt.

“We need to stop the simplistic blame game and focus on policy solutions that address the structural disadvantages in our community.”

Originally published as MyState Bank, Home Base Financial Wellbeing report finds young Tasmanians optimistic about future