Page 6 - Wealth-Adviser-Issue-125 (FWP)

ISSUE 125
NOVEMBER 2025

MEETING MEANING

WITH MONEY

GENERATIONAL SHIFTS

AND PRACTICAL STRATEGIES

FOR SAVVY SPENDING depositphotos.com

BY WEALTH ADVISER Generational Influences and Purchasing Power
Consumer spending is no longer a linear function of age
Introduction: The Paradox of Modern Spending or income. The power dynamics have shifted with older
In today’s Australian consumer landscape, paradoxes generations holding a significant share of wealth, influencing
abound. On one hand, digital innovation has placed a world not only their own buying habits but also those of younger
of products at our fingertips, promising speed and conve- family members. Data from Firstlinks shows that older Baby
nience. On the other, there is a rising hunger for deeper Boomers (65-74) represent just 9% of the population but
meaning, simplicity in consumption, and genuine connec- command 26% of Australia’s national wealth, continuing to
tion in purchasing decisions. These contradictions—such as spend despite having lower relative incomes. Meanwhile, Gen
the desire for both privacy and personalisation, abundance X (45-54), the highest income earners, hold 17% of wealth,
and authenticity—do not signal confusion but rather reflect and Gen Z/Y, with only 5% of national wealth, are increasing-
the layered expectations of modern Australians. Brands ly influential in household purchases and cultural trends.
and advisers must now navigate these paradoxes, merging Purchasing decisions are now diffused across life stages:
agility with anchoring in human-centric drivers like trust, grandparents often buy essential goods for their children
purpose, and transparency. and grandchildren, a dynamic that fuels the “grandparent
At the core, timeless needs have emerged as vital bench- economy”. Gen Alpha, despite not yet earning, influence
marks for relevance. Australians crave not just easy access household spending through their preferences and digital
but a narrative of value that affirms their identity and aspira- literacy. The generational squeeze is evident: Millennials
tions in a volatile economic environment. This intersection and younger Australians face escalating costs, limited
between personal meaning and financial practicality is vital purchasing power, and increasing financial stress, spurring a
for wealth advisers serving retail clients. reevaluation of value and prudent habits.

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