How Australia's Gen Z Is Outsmarting Rising Costs: Survey Reveals Creative Strategies

Australia's Gen Z has had to become resourceful and creative with money-saving hacks, according to a new survey, as the country continues to grapple with rising living costs and soaring.

From reusing tea bags to splitting sponges, young Australians are finding clever ways to stretch their dollars and navigate financial challenges, the recent TopCashback survey revealed.

Creative strategies

Many youngsters are faking illnesses to skip birthday parties and nights out to save money, News AU reported. Some have become experts at entering free product competitions, with 40.2% saying they treat it like a full-time job.

Others are becoming more environmentally conscious, with 33.1% often upcycling gifts and passing them on to others. Meanwhile, some zoomers are diluting their toiletries, with 30.8% adding water to shampoo and soap bottles to make them last longer.

Furthermore, 30.2% of Aussies have become savvy shoppers, visiting stores late in the day to grab free items and discounted products.

This trend comes as the cost of living continues to rise, with household essentials becoming more expensive, even though inflation is slowing down.

Gen Z is also relying on friends and family more than ever, borrowing items, sharing meals, and even doing laundry at their parents' homes.

Resourcefulness in managing finances

Andrew Woodward, founder of The Investor's Way and wealth management expert, said Australians were being pushed to their limits when it came to managing their finances, and were doing whatever they can to make ends meet.

Woodward believes there's no issue with people finding ways to stretch their money further. He was particularly surprised by the research showing that 45% of people were using cash rebate schemes and recycling to earn extra money.

He supporte dthese efforts, saying the more money people can keep in their pockets and save for the future, the better.

Woodward pointed out that less than 5% of people in Australia will retire with enough money for the lifestyle they want, mainly because they don't start saving early enough.

Furthermore, Woodward stressed that money problems can damage relationships. He shared that many people have come to him after their relationships ended, with money management differences being a key reason for the breakup.

He believes that simply budgeting won't save these relationships, but preventing overspending through other methods could help reduce the stress. Woodward compares it to dieting, where people write down their diet or budget, but don't create the right environment for success.

Last week, the Reserve Bank of Australia (RBA) revealed that credit card transactions of Australians reached a record high of AU$28.1 billion during the Christmas season, with AU$17.8 billion now being charged interest.