2024 saw rising “cost-of-living” pressures and HECS-HELP debts for young people. How do these financial pressures impact young people, who are on the cusp of making decisions about their future?
Wave 3 of GENERATION surveyed around 4,000 17-18-year-olds, during May – July of 2024. Most (89%) of young people were in Year 12 when surveyed. Young people who had left school were typically working, looking for work, or studying full time (e.g. vocational training). The majority (63%) of young people planned to go to university either immediately after finishing school or in the future.
34% of Year 12 students planned to postpone future study until they had saved up enough money
13% agreed that, due to costs of study of training, they would not study at all
62% of Year 12 students planned to live at home rather than move out
A quarter reported they would do a vocational job-related course rather an than an academic course
We found that financial pressures were significantly impacting young people’s planned course choices, study loads, and life choices. One strategy was for young people to pursue courses with better chance of getting a job (62%) or do a vocational job-related course rather than an academic course (23%).
Another approach was to minimise costs. For example:
• 62% of students planned to live at home rather than move out,
• 54% of young people were planning to take a course where a scholarship or financial assistance was available, and
• 40% of young people planned to take a course with lower fees.
Some young people were planning to reduce their study or not study at all because of financial costs. For example:
• 34% of young people planned to take a course part-time rather than full time,
• 31% would take a shorter course,
• 34% planned to postpone future study until they had saved up enough money, and
• 13% were planning not to pursue further study at all.
A larger proportion of young people in equity groups, compared to young people not in an equity group, agreed that because of the cost of study and training they planned to:
• Take a course with lower fees
• Take a shorter course
• Take a course where financial assistance is available
• Do my course part time rather than full time
• Postpone study until I have saved enough money
Compared to young people not in an equity group, Year 12 students in an equity group also had slightly higher rates of agreement that they would do a vocational related course (instead of an academic course) and not study at all.
All students reported that they planned to take a course with better job prospects due to the cost of study and training.
When looking at the three different equity groups, Aboriginal and Torres Strait Islander people were most likely to agree that, due to the cost of study and training, they were planning to take a shorter course or take a course with lower fees .
Overall, these findings highlight that a large proportion of young people are changing their plans due to the costs of study and training with equity students particularly impacted by the costs of future study and training.