Generation Gap: How Aussies of All Ages Manage Money in 2025

Australia’s financial landscape is rapidly evolving, and nowhere is this more apparent than in the way different generations approach their money. From Baby Boomers still enjoying the spoils of the property boom to Gen Z navigating a world of gig work and digital wallets, the ‘generation gap’ in finance is more than just a buzzword—it’s a lived reality for millions of Aussies.

The Shifting Sands: Generational Money Mindsets in 2025

Let’s face it: your parents’ approach to money was probably shaped by a very different Australia. As of 2025, Gen X and Boomers are more likely to own property and have robust superannuation balances, while Millennials and Gen Z face high living costs, rising rents, and new economic pressures. According to the 2025 Australian Bureau of Statistics (ABS) Household Financial Wellbeing survey, the average wealth gap between Boomers and Millennials now exceeds $350,000, driven largely by property and super balances.

• Baby Boomers (born 1946–1964): Prioritised home ownership, long-term employment, and superannuation growth. Many are now drawing down on their assets or considering downsizing.

• Generation X (1965–1980): The ‘sandwich’ generation—juggling mortgages, supporting children and ageing parents, while eyeing retirement strategies.

• Millennials (1981–1996): Delayed home buying, embraced the share economy, and adopted side hustles. Many are prioritising flexibility over traditional wealth-building paths.

• Gen Z (1997–2012): Digital natives, more likely to invest via micro-investing apps and crypto. Saving for a deposit feels out of reach for many, but financial literacy is on the rise thanks to social media.

Policy Updates and 2025 Trends Impacting the Gap

Recent government initiatives have sought to address some of these generational divides, but the gap persists. Key developments in 2025 include:

• Superannuation Policy Adjustments: The 2025 Federal Budget increased the concessional contribution cap, allowing younger Australians to supercharge their retirement savings. However, older Australians still benefit most from compound growth and larger balances.

• First Home Buyer Schemes: Expanded eligibility for the First Home Guarantee and increased deposit assistance are helping more Millennials and Gen Zers get onto the property ladder, but high interest rates and property prices remain hurdles.

• Digital Banking and Fintech: The rapid uptake of digital-only banks and micro-investment platforms is empowering younger Aussies to manage money differently—often with lower fees and more transparency.

• Intergenerational Wealth Transfers: Inheritance is expected to play an increasing role, with over $3.5 trillion set to change hands by 2050 according to Treasury estimates. But relying on the ‘Bank of Mum and Dad’ is not an option for everyone.

Strategies for Closing the Generation Gap (And What You Can Do Now)

Bridging the financial generation gap is about more than just policy—it’s about sharing knowledge, adapting strategies, and challenging assumptions. Here’s how Aussies of all ages can take action:

• Embrace Open Money Conversations: Families who talk openly about money—budgets, goals, setbacks—are better positioned to share financial wisdom and avoid repeating mistakes.

• Leverage Technology: From budgeting apps to robo-advisers, technology levels the playing field. Younger generations can use these tools to build healthy habits; older Aussies can use them to optimise investments and manage retirement income.

• Rethink the Path to Wealth: Traditional routes like home ownership aren’t the only game in town. Consider ETFs, fractional property investment, or side businesses—especially for Millennials and Gen Z navigating affordability challenges.

• Plan for Intergenerational Wealth Transfer: Estate planning isn’t just for the ultra-wealthy. Early conversations about inheritance, superannuation nominations, and enduring powers of attorney can ensure assets are passed on smoothly and fairly.

Real-world example: The Nguyen family in Melbourne started monthly ‘money dinners’ during lockdown, with each member (from Gen Z teens to Boomer grandparents) sharing a financial tip or question. The result? Better understanding of each other’s challenges—and a shared investment in a family ETF portfolio that’s already outpacing their old savings accounts.

The Bottom Line: Learning From Each Other

Every generation brings unique strengths to the table. Boomers and Gen X have wisdom and experience; Millennials and Gen Z bring adaptability and tech savvy. In 2025, bridging the generation gap isn’t just a matter of fairness—it’s a financial necessity. By sharing ideas, embracing new tools, and challenging outdated assumptions, Australians can create a more financially inclusive future, no matter when they were born.