93% have a financial concern, 55% worry about job security and 37% feel finances ‘control their life’

Sydney, 2 October 2025: The role of brands to help Australians find financial freedom has never been more critical with over nine in 10 worried about some aspect of their personal finances and just 45% confident in their job security. These are two of the critical insights into Australia’s ‘mental wealth’ from Kantar Australia’s 2025 Finding Financial Freedom state-of-the-nation study released today.

With financial independence remaining the biggest contributor to self-esteem (37%), overall, the feeling that ‘my finances control my life’ has surged to 37%, up 12 points since 2021, signalling a growing mental load. This rises to almost half of Gen Z (48%) and Millennials (46%). But the study also finds that financial optimism is on the rise for one in three Australians – a significant 3% increase since 2024. Yet, three in five still report average levels of self-esteem – intrinsically linked to financial independence and driven by a desire for quality-of-life and freedom of choice.

“Financial freedom isn’t just economical. It’s emotional,” says Kantar Australia Head of Qualitative Carolyn Reid.

“Three-quarters of Australians seek financial and lifestyle outcomes delivering on their quality-of-life quest (75%), despite the ongoing uncertainties that the world around us presents. And over seven in 10 are seeking greater happiness too (72%)*. To help achieve that happiness versus the hip pocket balance, nine in 10 of us are likely to treat ourselves to ‘little luxuries’ in the next 12 months (93%).”

“Australians are making deliberate trade-offs, balancing essentials with aspirations, and redefining what quality-of-life means in a world of uncertainty. And this tension is shaping behaviours. We are becoming more deliberate, weighing every dollar against competing priorities.”

The study also reveals that today, safety – physical, mental, digital and financial – are the top priorities of Australians. With financial freedom about feeling in control, three in five took steps in the past year to improve financial resilience while 55% regularly review and adjust financial plans to prepare for potential changes in circumstances. And in the last five years since the Finding Financial Freedom state-of-the-nation first launched, there has also been an incredible appetite for becoming financially confident (+25% since 2021). This is supported by Aussies believing that financial institutions are now more actively working to educate them on financial matters. On the flipside, half feel financial services companies don’t make information easy to understand (51%) and 62% believe they should do more to educate us.

With just half of Australians comfortable using digital tools for money management, the high cost of financial advice for three in five (61%) is forcing 72% to seek out unregulated sources to empower financial decisions. These including talking to friends, family or acquaintances (28%), search engines (24%), podcasts (14%) and news articles (14%). Notably, 17% are now turning to Gen AI tools for financial advice despite two-thirds of Australians feeling ‘frightened by the impact that AI will have on me personally’*, a concern Carolyn Reid says is akin to “people self-medicating with medical advice from ‘Doctor Google’ because they can’t afford healthcare”.

“While the age of AI-powered information is here, there’s a powerful counterforce: self-esteem built on financial literacy. By empowering customers, marketers will earn their trust and cultivate a loyal brand community. This has implications for product and services communications, and delivery of experiences and content.”

“Whatever the barriers, financial institutions are still relevant, but the industry must adapt,” adds Reid. “If financial marketers continue to prioritise jargon and impersonal interactions, AI – despite its inhuman nature – may become the trusted adviser for financial decisions due to its perceived clarity, personalised learning and ease of use. AI can be a powerful tool, but it cannot replace human empathy. So, in this world of unregulated noise and algorithmic coldness, the human touch is more valuable than ever. Remember, seven in 10 Aussies value financial services brands that help them take control of their finances (68%).”

Finding Financial Freedom also finds one-third of Australians feel that their financial situation has improved in the last 12 months (35%), and half feel more financially prepared to handle a crisis than in the pandemic (51%). Increasing financial confidence is evidenced by three-quarters carefully considering affordability before making purchase decisions, and 35% increasing investment portfolios or super contributions.

“In 2025, investing isn’t just strategy. It’s a confidence statement bringing a rise in ‘wealth warriors’,” adds Reid. “When we asked Australians how they’d use an extra $1,000, 75% would choose savings, investments or super. We’re also choosing to re-define not abandon the holy grail of home ownership and are rethinking retirement too. Just 13% are worried about interest rate hikes; and while half lack confidence in retirement plans, two in five are paying down or eliminating debt to retire early. Younger Australians – often assumed to be debt-first – are especially leaning into investing (54% of Gen Z and 59% of Millennials).”

“The question for brands is how to create value in a world where trade-offs are the norm? The answer lies in innovation and disruption – simplifying choices, reframing value, and helping consumers protect what matters most: their quality-of-life.”

The Finding Financial Freedom white paper is available to download here.