Australia — A new study from Kantar Australia has found that while most Australians remain concerned about their finances, growing numbers are expressing optimism about their financial future and making deliberate trade-offs to maintain quality of life.
According to the report, more than nine in 10 Australians revealed a financial concern, with 55% worried about job security. At the same time, 37% said their finances “control their life”, an increase of 12 percentage points since 2021. The proportion rises to nearly half of Gen Z (48%) and Millennials (46%).
Despite this, financial optimism has increased slightly, with one in three Australians reporting a more positive outlook, up three percentage points from 2024. A third also said their financial situation had improved in the past year, while half felt more prepared to handle a crisis than during the pandemic.
Carolyn Reid, head of qualitative at Kantar Australia, argued that financial freedom is not just economic; hence, it is ‘emotional’.
“Three-quarters of Australians seek financial and lifestyle outcomes delivering on their quality-of-life quest (75%), despite the ongoing uncertainties that the world around us presents. And over seven in 10 are seeking greater happiness too (72%). To help achieve that happiness versus the hip pocket balance, nine in 10 of us are likely to treat ourselves to ‘little luxuries’ in the next 12 months (93%),” Carolyn explained.
Moreover, the study highlighted that Australians are focusing on both resilience and aspirations, with three of five saying they had taken steps to improve financial resilience in the past year. Additionally, 55% regularly review their financial plans; however, many are turning to informal and unregulated sources of advice, such as friends and family (28%), search engines (24%), podcasts (14%), and even generative AI tools (17%).
“While the age of AI-powered information is here, there’s a powerful counterforce: self-esteem built on financial literacy,” Reid said.
She also highlighted the importance of empowering customers, “Marketers will earn their trust and cultivate a loyal brand community. This has implications for product and services communications, and delivery of experiences and content.”
She added, “Whatever the barriers, financial institutions are still relevant, but the industry must adapt. If financial marketers continue to prioritise jargon and impersonal interactions, AI – despite its inhuman nature – may become the trusted adviser for financial decisions due to its perceived clarity, personalised learning, and ease of use.”
Reid also underscored how AI can be a powerful tool, but is still not a replacement for human empathy, “So, in this world of unregulated noise and algorithmic coldness, the human touch is more valuable than ever. Remember, seven in 10 Aussies value financial services brands that help them take control of their finances (68%).”
Meanwhile, the research also found that investment is increasingly viewed as a confidence-building activity, with over a third of Australians (35%) increasing their investment portfolios or super contributions, while three-quarters said they carefully consider affordability before making purchases.
With this, younger Australians are particularly engaged, with 54% of Gen Z and 59% of Millennials leaning into investing.
“In 2025, investing isn’t just strategy. It’s a confidence statement bringing a rise in ‘wealth warriors,” Reid said. “When we asked Australians how they’d use an extra $1,000, 75% would choose savings, investments, or super. We’re also choosing to redefine, not abandon, the holy grail of home ownership and are rethinking retirement too.”
She added: “The question for brands is how to create value in a world where trade-offs are the norm? The answer lies in innovation and disruption – simplifying choices, reframing value, and helping consumers protect what matters most: their quality of life.”
