A study of 2500 Australians in July has revealed that 93 per cent of respondents are worried about their current financial situation, although one in three are optimistic about the future.

Kantar Australia's latest study, 'Finding Financial Freedom 2025' also reveals that 55% of respondents are concerned about job security, and 37% feel that their finances control their life. This marks a 12-point increase since 2021.

Meanwhile, the study indicates that financial independence is a crucial factor in self-esteem, with a growing number of Australians seeking financial and lifestyle outcomes that enhance their quality of life. Three-quarters of respondents are pursuing greater happiness, and nine in ten are likely to indulge in 'little luxuries' over the next 12 months.

Safety remains a top priority for Australians, encompassing physical, mental, digital, and financial aspects. In the past year, three in five Australians have taken steps to improve their financial resilience, and 55% regularly review and adjust their financial plans. There is a notable increase in the appetite for financial confidence, with a 25% rise since 2021.

The study also highlights challenges in the financial services sector, with half of Australians feeling that financial services companies do not make information easy to understand. Additionally, 62% believe that these companies should do more to educate consumers. Only half of the respondents are comfortable using digital tools for money management, and the high cost of financial advice drives 72% to seek unregulated sources for financial decisions.

A growing trend is the use of Gen AI tools for financial advice, with 17% of Australians turning to these technologies despite concerns about AI's impact.

Carolyn Reid, Kantar Australia's Head of Qualitative, stated, "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."

The study shows that one-third of Australians feel their financial situation has improved over the past 12 months, and half feel more financially prepared to handle a crisis than during the pandemic. Three-quarters of Australians carefully consider affordability before making purchase decisions, and 35% have increased their investment portfolios or super contributions.

Reid commented on the evolving consumer behaviour, saying, "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 underscores a shift towards investing as a statement of confidence, with 75% of Australians choosing savings, investments, or super if given an extra $1,000. Reid noted, "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."