New research reveals financial pressures on young people, but positive signs of progress emerge
A new study by ASB Bank has revealed that while young New Zealanders are grappling with economic challenges, 43% of those aged 18 to 24 are actively working to improve their financial wellbeing.
The research—based on anonymised data from more than 650,000 customers, including 57,000 aged 18–24—highlighted both the pressures Gen Z faces and the positive shifts in behaviour that are beginning to emerge.
Meanwhile, recent figures from Stats NZ show that annual inflation edged up slightly to 2.5% in the March quarter, with rent and food prices continuing to rise faster than average, further tightening the financial strain on younger households.
Cost of living and youth unemployment hit young Kiwis hardest
Youth account for 80% of 2024’s net job losses
The ASB report found that high youth unemployment is compounding cost-of-living pressures.
According to ASB economists, more than 80% of net jobs lost in 2024 were among people aged 30 and under. Youth unemployment for those aged 15–19 is expected to stay near 20% until the end of 2025, compared with an overall rate of around 5%.
These conditions are reflected in ASB’s customer data.
Young people aged 18–24 were found to be 26% more likely to experience payment problems than the national average. Additionally, 56% of this age group lack at least $1,000 in savings, compared to 44% of all Kiwi adults.
Many living paycheck-to-paycheck, but savings habits are emerging
The ASB research showed that 60% of 18–24-year-old customers rarely have enough to cover monthly expenses, and nearly half live paycheck-to-paycheck.
However, there are promising signs of change, according to Rosalyn Clarke (pictured), ASB general manager business transformation and customer engagement.
“This generation started working and managing their money through lockdowns, rising inflation and a recession,” Clarke said. “It’s tough–but we know young people want to get ahead, and with a lifetime in front of them, small changes now can make a big financial difference.”
Young Kiwis making moves toward financial resilience
“Our data shows one-fifth of our 18–24 customers are regular savers, which is encouraging, as good savings habits can significantly lift financial wellbeing,” Clarke said.
“Eighty percent of this age group contributed to their KiwiSaver in the past year, and they’re 18% more likely to invest enough to earn the $521 annual government KiwiSaver contribution.”
The bank also reported that 43% of its young customers took tangible steps to build better habits around spending, saving or credit.
“Forty-three percent of our 18–24 customers took steps to build better spending, savings, or credit habits in the past year,” Clarke said.
“By making changes such as reducing their overdraft, setting up regular savings, or getting KiwiSaver advice, we can see their financial wellbeing improves compared to those in their age group who don’t.”
Youthline research confirms financial stress among young adults
ASB’s commitment to youth wellbeing is further bolstered by its partnership with Youthline, a mental health charity.
Research from Youthline showed that money is one of the top stressors for Kiwis aged 21–24.
“If young people are worried about money, or need support to get on top of their finances, ASB offers free help – and you don’t need to be a customer,” Clarke said. “Check out our online tools or book a financial wellbeing review and we’ll help you take steps toward your goals.”
ASB’s Level Up campaign boosts financial confidence
To further support rangatahi, ASB continued to roll out its Level Up campaign, now in its third year.
The initiative highlights money tools such as Goal Planner, which helps track savings goals, and Save the Change, which automatically rounds up purchases and saves the difference.
ASB’s community bankers and school team also provide free, face-to-face financial literacy workshops to school leavers, community groups, and young job seekers across New Zealand.
Read the ASB report here.
