How the Glamorous Instagram Lifestyle and Rising Costs are Financially Straining Young Australians

Younger Australians are facing financial struggles that feel much tougher than those experienced by the baby boomer generation. According to financial expert Rebecca Pike from Finder, a combination of rising costs and inflated lifestyle expectations is to blame.

Pike notes that younger workers often aren’t receiving significant pay raises to cope with increasing expenses. “It seems like profits go back into businesses instead of supporting wage growth,” she explains. As a result, many young Australians find it challenging to cover daily expenses like commuting and groceries.

This cost-of-living crisis is expected to worsen for those who are renting or paying off mortgages. “Prices keep rising, making it harder for people to make ends meet,” she adds. Recent data highlights this pain, showing that costs for essentials like rent and food have surged, leaving many feeling financially squeezed.

Social media also plays a role in this burden. Platforms like Instagram and TikTok create unrealistic lifestyle standards. “People see images of what life should look like and feel inadequate if they can’t measure up,” Pike says. This pressure often leads to spending beyond their means in an attempt to keep up.

On a somewhat brighter note, the Commonwealth Bank predicts that the Reserve Bank of Australia may lower its cash rate to 3.35%, its lowest since March 2023. Gareth Aird, the bank’s head of Australian economics, suggests that weak consumer spending could slow economic growth, affecting GDP positively in the long term.

Even with potential rate cuts, saving still remains difficult for many young Australians. In the past year, prices for fruit and vegetables have risen by 7.6%, while petrol prices have decreased by the same percentage, now averaging below $1.85 per litre in major cities. Additionally, electricity bills have dropped by 9.6%, largely due to a federal government rebate program that has been extended through the end of 2025.

While there are some signs of relief, the overarching financial situation for young Australians remains challenging. Balancing costs with lifestyle aspirations continues to be a significant hurdle in achieving financial stability.

For more detailed analysis, check out research from the Australian Bureau of Statistics [here](https://www.abs.gov.au).

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