Young, Smart, and Stuck? Why Gen Z and Millennials Need to Think Bigger About Wealth

Gen Z and Millennials are financially switched on. You’re budgeting, cutting back on spending, using cashback tools, and openly talking about money in ways your parents never did. According to the CommBank Financial Fitness Report (2025), you're actually leading the pack in many areas. But there's a catch. While you're mastering the day-to-day, most young Australians are falling short on the bigger financial plays like investing and planning for long-term wealth. If that sounds familiar, here’s what the data says, and why property could be the piece you’re missing.

You're Crushing the Basics

64 per cent of Millennials currently use a budget, the highest of any generation. Gen Z isn't far behind. Compared to older age groups, younger Australians are far more likely to track their money, reduce non-essential spending, and find smarter ways to save. 63 per cent of Australians now look for discounts and cheaper options for everyday items. 66 per cent have cut back on dining out and takeaway. One in five Australians have tried a no-spend challenge or rented instead of buying. This shift in money habits is largely driven by younger Australians dealing with cost-of-living pressure. It shows discipline and awareness, which are traits that matter a lot when it comes to investing.

You're Talking About Money (Finally)

Money has been a taboo subject for generations, but not for you. Only 15 per cent of Gen Z say they avoid talking about personal finances altogether, compared to 24 per cent of Gen X. More open conversations mean better opportunities to learn from others and make smarter choices earlier in life.

But Here's the Problem: Investing Feels Out of Reach

Despite being engaged and motivated, most young Australians feel unprepared to invest. 70 per cent of Gen Z say they know little about investing or wouldn’t know where to start. Only 55 per cent of Australians say they have a plan to grow their money. Only 10 per cent list buying an investment property as a financial goal. This is the gap. You’ve got the budgeting skills, the mindset, and the motivation. But you’re stuck at the starting line of wealth building.

You’re Not Confident About Super Either

Retirement might feel a long way off, but it’s a real concern for many young Australians. Only 31 per cent of under-30s feel confident they’ll have enough super to retire comfortably. More than 40 per cent of Gen Z don’t know how their super is invested. Superannuation is meant to be your biggest financial asset. If you don’t feel confident with super, you’re not alone. But you do need a backup plan.

Why Property is Still a Smart Play

While shares and high-interest savings get the spotlight, property offers something many young investors overlook. Structure, stability, and serious long-term potential. If you already budget well, think long-term, and have financial goals, you’re the ideal candidate to begin building a property portfolio. Even if you rent where you live, you can still invest elsewhere. It’s called rentvesting, and it’s one of the most accessible ways to break into the market. You don’t need hundreds of thousands saved. You need the right strategy, support, and a mindset that’s ready to shift from just surviving to building something bigger.

Don’t Stop at Financial Fitness. Aim for Financial Freedom.

You’ve built the habits. You’ve done the hard part. Now it’s time to let your money do some of the work. At Young Investors Club, we help Millennials and Gen Z take that next step. Whether you’re saving for your first deposit or just learning how investing works, we’ll guide you through the property maze without the jargon, pressure, or suits. Get in touch at enquiries@younginvestorsclub.com.au

Source: CommBank Financial Fitness Report, June 2025