The Australian dream has been present in Australia for many decades and as of recently has undergone some major transformation.
McCrindle were delighted to partner with Insignia Finance to write the Financial Freedom Report and uncover the financial aspirations among Australians. The report found that financial independence now surpasses home ownership as the top financial dream for Australians today.
More than half of Australians (55%) view financial independence as their primary goal. This new found dream comes as owning a home slips to third place (45%) alongside achieving a good work/life balance. Regular holidays even top owning a home for half of Australians (50%) and underscores that Australians are embracing a new paradigm driven by the desire for a fulfilling lifestyle.
Gen Z still hold onto the dream
While financial independence appeals to the majority of the population, the youngest generation, Gen Z still hold on to the dream of home ownership with 63% listing it as their top financial aspiration. For Millennials, a good work/life balance takes precedence (54%), while Gen X (60%) and Baby Boomers (57%) prioritise financial independence. These shifts in priorities reflect the changing landscape of aspirations, influenced by current economic factors and evolving societal norms.
More than just a dream, a dream lifestyle
Australians don’t just see financial independence as a goal, but are actively pursuing their dream lifestyle. A resounding three in five (60%) express a stronger desire to live their dream lifestyle compared to the desire for their dream home (40%). This trend is driven by the realisation that a fulfilling life encompasses more than just homeownership. Men and women differ slightly in motivation, with over half of females (55%) being extremely or very motivated to achieve their dreams, compared to 45% of men.
Financial literacy is the vessel to get there
To achieve their dream lifestyles, Australians are eager to enhance their financial literacy. Over three in five (63%) Australians are dedicating more time to increase their financial knowledge compared to the previous year. Additionally, nearly three in five (58%) strongly or somewhat agree that they want to manage their money better, with 21% actively seeking sources to improve their financial knowledge. This proactive approach to financial literacy demonstrates Australians’ commitment to making informed financial decisions that align with their aspirations.
The shifting aspirations of Australians signal a significant departure from the traditional focus on home ownership. Financial independence has emerged as the new pinnacle of success, reflecting the changing economic landscape and evolving societal values. Australians are embracing a broader vision of a fulfilling life, where regular holidays, work/life balance, and financial empowerment play vital roles. As they strive to achieve their dream lifestyles, Australians are dedicating themselves to improving their financial literacy, seeking knowledge and resources to make sound financial decisions. With financial independence at the forefront, Australians are forging a path towards a future that prioritises personal fulfilment and financial wellbeing.
2023 Trends of the year
With 2023 on the horizon, it’s time to take stock and prepare for the year ahead. Join us in this one hour virtual event as we present the research backed trends for 2023.
About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.