Gwyneth King is a multimedia storyteller based in Metro Manila, Philippines, with a BA in Communication Arts from De La Salle University. She is a curious human who translates her perspectives on the lived experience into writing, often intertwining her sentimentality and tenderness between the lines.

In the turbulent economic environment, money is losing its value. People are reevaluating their spending across sectors. With a looming crisis of trust in financial institutions, how are people managing their budgets? And how can brands navigate the complex relationship between value and cost?

Critical Spenders

As the new post-pandemic normal settles in and people adapt to a context of uncertainty, constant adversities, and pessimism, we are moving away from a moment in which consumers expected brands to rise up to society's challenges and into one when they’re demanding genuine allyship from businesses.

Shared Values

For some Gen Z and Y Australians, adulthood is no longer defined by financial independence but by reliance on the ‘Bank of Mum and Dad’. Once a milestone of self-sufficiency, home ownership has become unattainable and family support has turned into a structural feature of adulthood. The collapse of the ‘Great Australian Dream’ underpins this – a home costs more than AU$1 million on average and rent has increased 36.1% across the country. 

The Guardian

 According to Sean Foley, professor of applied finance at Macquarie University, a house cost four times the average wage for previous generations, while houses today cost 23 times the average wage – “making housing unaffordable in the traditional sense”. 

Interview with Sean Foley conducted by the author

 to cope – “My only hope of retirement at this point is neither of my parents ending up in aged care.”

In this climate, young Australians can no longer afford to grow up on their own. Instead, they rely on intergenerational transfers both for milestones and for day-to-day survival. Around 40% of Australians have received money from or given money to a family member as a form of financial aid, with gifts amounting to AU$100,000–200,000 and upwards. 

9News

Parents and grandparents step in to help with everyday expenses such as groceries and bills (56%), to assist with debt and mortgage payments (28%) and to support property purchases (25%). 

Australian Broadcasting Corporation

 “This shift challenges traditional notions of self-sufficiency and reframes adulthood as a collaborative, family-supported phase”, says Angel Zhong, finance academic and professor at RMIT University. 

Interview with Angel Zhong conducted by the author

, multigenerational living is the norm. Some wait until marriage to leave home, while others stick together to benefit from family support. 

But the new family-bank economy comes at a cost. In the process of financial support, one in 20 older Australians risk giving up a financially stable retirement, while others “may need to delay retirement plans to affect certain strategies”, according to Foley. 

The North West Star

 This divide fuels resentment – boomers are seen as both the cause and the lifeline of the crisis, while young Australians face adulthood with meritocracy out of the window. "These days, even if both people who are partners work hard, or someone who's single works very hard, they're never going to achieve what previous generations achieved,” says an Australian with “multiple degrees and a PhD”. 

ABC News

The phenomenon is so widespread that experts argue that the phrase itself needs updating. “We should be talking about the ‘family bank’”, says Digital Finance Analytics founder Martin North. 

 acknowledge shared financial lives, while 

 welcomes family-backed financial unity. With money management now intergenerational, the Bank of Mum and Dad is more than a stopgap – it is a cultural redefinition of adulthood. The question for brands and institutions is whether they will enable this new economy or challenge it.

Young Australians are entering adulthood burdened with more debt than any generation before them. On average, a student who graduated in 2023 or 2024 carries AU$31,500 in student debt, compared to AU$23,000 for graduates in 2008 or 2009. 

For those who studied between 1974 and 1989, education was free. 

 “Once a decent wage is achieved (by today’s youth), it is consumed by repayments to HECS debt, rent and the ever-increasing cost of living”, says Foley. 

 The result is widespread financial stress. 82% of young Australians are financially strained – a quarter of Gen Zers have less than AU$1,000 in savings and 8% have none. 

ASIC

 “This generation is often described as the ‘precariat’ – navigating adulthood with uncertainty and stress”, says Zhong. 

 Despite these challenges, nine in ten want to boost their financial confidence and learn how to manage money more effectively. 

At the same time, cultural expectations around independence are colliding with economic realities. “The expectation of independence by one’s mid-20s has shifted to a reality of prolonged dependence on family and delayed life milestones”, says Zhong. 

 While intergenerational living is common in other countries, half of Australians believe that people older than 26 shouldn’t live with their parents. 

SBS News

Yet around 7% of Australians were part of a family where an adult child who moved back in with their parents, often pushed back by the cost-of-living crisis and inflated daily expenses. 

realestate.com.au

 With many young Australians stuck in unlucky circumstances, many parents and grandparents are more than willing to help. It’s their philosophy of 

 and investing in future generations when they can to keep the cycle going. A grandmother and granddaughter living together in a heritage home allows them to enjoy halved expenses and double the company. 

Some parents take a strategic approach, collecting ‘rent’ from their children and funnelling it into savings for a deposit, while others offer cheaper ‘rent’ as an alternative to the overheated rental market. 

The deep need driving this behaviour is the desire for stability and progress. For young Australians, financial interdependence is acceptable as long as it still feels like a step towards future independence – or simply staying afloat without losing direction. Brands and institutions are beginning to respond to these realities. 

 allows families to pool property equity to help borrowers qualify for loans, while fintech 

 provides tools to empower financial literacy and confidence. The government’s First Home Guarantee also reflects this shift by enabling low-deposit purchases, though often alongside family backing. “Rather than framing young adults as dependent or incapable, (brands) are designing products that celebrate collaboration and shared goals”, says Zhong. 

The rise of the Bank of Mum and Dad signals a shift towards inheritocracy, where success and survival are determined by family wealth. 

 Zhong says, however, “The growing reliance on family support among peers can exacerbate feelings of inequality and exclusion (for those without access to family support)”. 

 For many Australians, that exclusion is sharp. 58% of first-home buyers don’t have family support and four in five younger Australians haven’t asked their parents for financial help, with many expecting instead to support their parents in the future. 

With only 14% of homes deemed affordable for middle-class households and just 3% for low-income ones, many resign themselves to renting for life. 

 The housing market is limiting access to those with family wealth – raising the risk of a new feudal order and widening socio-economic divides. One Australian 

, “25 years ago, a single-income family could buy a nice house in a decent area…and raise three kids. Now, two full-time working people have to decide between a house or kids.”

For those left behind without a generational safety net, fintechs and institutions are stepping in. Zhong notes that financial apps are “democratising opportunities such as micro-investing, financial education and budgeting tools.” 

, a stablecoin payment provider, leverages digital assets for everyday use – pioneering crypto as stability against 

. Institutional support has also expanded – the 

 is “an excellent step in the right direction”, according to Foley. 

 The plan gives first-home buyers access to 5% deposits, with the government guaranteeing the rest – removing the need for Lenders Mortgage Insurance that can cost AU$23,000. 

 has supported 150,000 buyers and lifted Commonwealth Rent Assistance by 45%. 

News.com.au

But family-first resilience also has its costs. “Pride may be compromised by dependence… While some feel grateful, others may experience guilt or diminished self-worth, especially if they compare themselves to peers who achieved independence without family help”, says Zhong. 

 Financial support can enable long-term planning but it can also distort security and under-estimate risk. “The probability of risk from overconfidence is akin to the common belief of lottery winners going bankrupt”, Zhong adds. 

 For 43-year-old Pamela, moving into her parents’ affluent neighbourhood with her husband and kids brought waves of shame and guilt. “You are meant to be a grown adult, and they (her parents) are meant to be living their life, and you've turned everything upside down.” 

 At its core, Aussies are searching for fairness and recognition – navigating dignity in an unequal system.

Wealth doesn’t determine whether parents decide to step into their children’s financial lives. 

For some, this means digging deeper into their pockets more than others because of socio-economic differences. Among parents who provide financial support, 54% dip into their own savings, 29% use current income and 19% cut back on personal expenses. 

Australian Broker

Rather than issuing loans and creating debt, generational support is increasingly reframed as legacy building. With the rise of property prices, 75% of parents don’t expect to be repaid – a 42% increase since 2021. 

 Yet these family agreements are often undocumented and based on mutual trust – a set-up that could lead to tension or misunderstanding in the future, according to Zhong. 

 Families that merge financial lives need tools that act as objective third parties – creating structures and boundaries that protect relationships in the long run.

But this support has costs of its own. “This financial support can strain long-term security and shift priorities from personal goals to family legacy”, says Zhong. 

 Parents who overextend may risk credit card debt or delayed retirement, which can in turn further incapacitate adult children reliant on them. Early financial education offers a preventative solution – teaching children to avoid youth poverty and reducing strain on parents later. 

, an Australian pocket money app, introduces kids aged 6–17 to budgeting and saving through a parent-monitored debit card and app – instilling habits that can carry over into adulthood.

At the same time, communal models of survival are reshaping the cultural landscape. “Current generations are open to changing the paradigm – whether it be having kids at 40, living in multigenerational environments by building granny flats in the backyard or financial interdependence such as the Bank of Mum and Dad”, says Foley. 

 Intergenerational care is becoming normalised as families co-create financial futures across multiple generations. Aussies are in pursuit of continuity and care amid uncertainty. Parents want to ensure their children’s futures, even at personal sacrifice, while young Australians find security in this familial safety net. Financial brands can extend this model of interdependence – 

, a mobile payments startup, simplifies shared expenses across households, while experts such as Zhong suggest insurance and investment products designed for wealth transfers and protection across generations. 

 Across these contexts, adulthood in Australia is being redefined from independence to interdependence. Survival has become a family project, where money flows across generations to secure futures, preserve dignity and keep households afloat.

For many young Australians, the future of financial independence involves multigenerational interdependence. First-home buyers who had parental support saved 41% more than those without – highlighting how family aid can accelerate progress. 

Finder

 But dependence on parents can also blur boundaries – mixing money with personal relationships risks awkwardness, guilt or conflict. But beneath the risks lies a desire for support to feel like momentum. Young Australians want family dependence to function as progress rather than stagnation. “Brands must design with empathy and flexibility”, says Zhong. “Tools should accommodate diverse family structures, from single parent households to multigenerational living.” 

 With 23% of parents in Australia letting their adult children live rent-free, cohabitation has become a common setup. 

Mozo

, a Sydney-based app, addresses this reality by helping households structure shared expenses. With bill dashboards, cost calculators and automated reminders, it turns reliance into intentional co-planning. By making dependence feel organised and future-oriented, it preserves dignity while meeting families’ needs. Brands that frame shared support as progress, not stigma, can build loyalty and cultural relevance.

Young Australians are increasingly relying on the Bank of Mum and Dad at a time when institutional safety nets feel out of reach. But while financial support may be essential, it can also polarise. Mortgage stress now affects one million Australians, amplifying the pressure for families to step in. 

Roy Morgan Research

 At the heart of this behaviour is the need for fairness and recognition. Families want support to feel empowering rather than divisive – a collaboration that sustains dignity across generations. “Where a parent encourages their child to think about home ownership and empowers them by providing or matching a deposit, this can be a hugely successful path to financial independence”, says Foley. 

, a digital financial advice platform, reflects this by offering affordable, bespoke ‘living plans’ that adjust as life changes – making strategic guidance accessible beyond the wealthy few. 

Financial Review

 For brands, designing tools that democratise advice and reframe aid as empowerment – not handouts – is key to bridging the dignity gap in inheritocracy.

One in three Australian parents feel the emotional pressure to financially support their children. 

 Across socio-economic backgrounds, parents see money as protection and care – stepping in even when it puts their own stability at risk. But when generosity is unplanned, it can undermine retirement or compromise long-term security. Financial support has become a kind of love language. And like any form of care, it works best when it’s intentional. “Dignity comes from being seen, respected and equipped to make informed choices”, says Zhong. 

 Tools that help families structure early handouts can transform them from a source of anxiety into a sustainable legacy. 

, a personalised money management app, does this by giving Australians a clear overview of their finances – from budgeting and expense tracking to superannuation management. 

Jacaranda Finance

 By turning care into structure, brands can help families protect both the next generation and the futures they’ve worked hard to build.

40% of Australians have received money from or given money to a family member as financial aid

In the process of financial support, 1 in 20 older Australians risk losing a financially stable retirement

75% of parents don’t expect to be repaid for their financial support, opting to build a legacy rather than create debt

Young Australians delay the Australian Dream and forgo independence – depending on parental support to survive in an adulthood defined by inflation and debt

As the Bank of Mum and Dad grows in influence, Australia becomes at risk of an inheritocracy that excludes those without generational privilege

Financial support has gone from lending money to legacy building, with many Australian parents not expecting anything in return for their financial aid

Professor of applied finance at Macquarie University, specialising in fintech and cryptocurrency research published in top journals.

Finance academic at RMIT University specialising in empirical asset pricing and digital finance, recognized for research excellence.

Gen Z (born 1997-2010)

Gen Y (born 1982-1996)

Australia

Banking and payments

Young Australians face an adulthood different from generations prior – confronting steep student debt, an unforgiving housing market and an ongoing cost-of-living crisis. As ‘the Bank of Mum and Dad’ grows in significance, Australian households navigate the new reality of financial interdependence.

Analysis

Gwyneth King

Sean Foley

Angel Zhong

Related Macro Behaviours

Critical Spenders

Shared Values