18-07-2025
Australia's 'most financially cautious' shoppers are people aged between 18 and 24 as rising cost of living bites youth
The cost of living crisis in Australia has left its mark on all generations, but young people appear to be taking it more seriously in terms of how they spend their money, according to new data.
The 2025 ANZ Online Shopping Report revealed those aged between 18 and 24 prefer to pay with debit cards when shopping online, the highest usage rate (53 per cent) among all age groups.
The report showed that credit cards were on the decline in general, indicating an overall change in attitude towards how payments are made by consumers in the current economy.
Shannon Ingrey, Vice President and General Manager, APAC at BigCommerce said the preference to use existing funds over credit suggested a "strong desire" for people to "stay in control of their finances".
He also said the younger generation had grown up in a time of economic uncertainty that prepared them to make more careful financial decisions in general.
"Aussie shoppers, including Gen Z, are also engaging with ecommerce features that help them manage their spending. According to our research, 59 per cent of shoppers value automated price tracking tools, while 49 per cent favour personalised recommendations," Mr Ingrey told
"These behaviours point to a generation that has grown up in a post-Global Financial Crisis world where financial caution is not a reaction to change, but a baseline.
"For many, managing money with care is all they've ever known and this mindset now shapes how they shop, what they prioritise, and what they expect from brands."
According to the Australian Bureau of Statistics (ABS), the Living Cost Indexes in Australia rose between 2.4 and 3.5 per cent over the 12 months to the March 2025 quarter.
Health, housing and food and non-alcoholic beverages were the key contributors driving the living cost indexes upwards.
Mr Ingrey said the caution from Gen Z shoppers is "shaped by both the economic climate and the values they bring to how they shop".
"While younger Australians are digital natives, their behaviour shows a clear focus on practicality and value," he said.
86 per cent of young people are also favouring free shipping as their preferred loyalty reward, indicating the desire to take advantage of discounts when possible, while 97 per cent say the cost of shipping is a key barrier to them making a purchase.
"Gen Z shoppers are less motivated by generic discounts and are looking for consistent value through relevant offers, smooth checkout experiences, and delivery choices that work for them," Mr Ingrey said.
"Their behaviour reflects a mindset that values control, transparency, and thoughtful spending at every stage of the purchase journey."
