Page 7 - Wealth-Adviser-Issue-125 (FWP)

ISSUE 125
NOVEMBER 2025

Identity, Values, and the Experience Economy financial health. Older Australians, meanwhile, increasingly
Material acquisition is no longer sufficient to satisfy provide for younger generations, reinforcing family inter-
Australians’ search for identity and meaning. People are dependence and shifting the concept of financial resilience
increasingly investing in experiences and authentic rela- from purely individual to collective.
tionships over accumulating new possessions. According to
Firstlinks, over 77% of Australians are more interested in Wealth Management in an Era of Change
meaningful experiences than material goods, signalling a For wealth advisers, helping clients navigate these
shift in consumer priorities toward expression and connec- shifting sands requires a blend of technical expertise and
tion. This desire does not eliminate status-driven consump- philosophical insight. Advisers must assist clients in align-
tion: Australians continue to seek subtle ways to display ing spending habits with deeper values, ensuring strategies
values and identity through purchasing choices, even amid preserve both financial security and personal meaning.
economic pressures. The rise of intergenerational conversations—about values,
The concept of “premiumisation” persists, where indi- goals, and the practical realities of retirement, property, and
viduals splurge on small luxuries even as they cut back in legacy—demands empathetic, adaptable advice.
other areas. This echoes the “lipstick effect”—consumers Successful wealth management today means engaging
spending on affordable indulgences in tough times—a with clients’ questions about identity, happiness, and
trend confirmed by both older generations and Gen Z/Y. long-term wellbeing as much as product selection or market
Environmental and ethical considerations also influence performance. Retail clients benefit most when advisers
spending, but real-world constraints often force com- encourage holistic planning, support lifestyle transitions,
promise. More than half of Australians (57%) admit to and provide actionable guidance for each life stage.
purchasing cheaper goods that do not align with their social As the consumer landscape becomes more complex and
responsibility values. This duality means customers contin- contradictory, Australians continue to walk the line between
ue to seek value while aspiring to uphold their ideals. pragmatism and aspiration. Finding meaning in money is
not only possible—it’s essential for building resilience, fos-
Resilience, Wellbeing, and Practical Strategies tering satisfaction, and securing intergenerational wealth.
Australians face the reality of a persistent cost-of-living
crisis. The ability to make resilient financial decisions is
now paramount. Across all generations, individuals are References
reconsidering spending priorities, automating savings, and 1. Mark McCrindle, “The mystery behind modern spending choices,”
experimenting with new budgeting techniques. Firstlinks, 11 Nov 2025.
Practical strategies for savvy spending recommended by 2. Grant Thornton, “What’s driving Australian consumer purchasing
financial advisers include: decisions?” Grant Thornton Australia, 29 Oct 2025.
• Building emergency buffers through automated transfers 3. “Consumerism In Australia: 2025 Trends, Impacts & Smart Strategies,”
and “set and forget” savings tools. Cockatoo, 19 May 2025.
• Prioritising needs over wants, using spending trackers 4. “Mixed financial behaviours from Gen Zs amid cost-of-living
and apps to monitor financial habits. pressures,” Youth Insight, 11 Mar 2024.
• Taking advantage of subscription-based services only 5. “Consumer Spend by Generation: Retail’s Guide to Industry Trends,”
where they add meaningful value, avoiding the “always Retail Doctor, 25 Feb 2025.
paying” trap. 6. “Strategies to kickstart a financial reset in 2025,” Moneysmart, 13 Oct
• Streamlining financial commitments in line with person- 2025.
al values, investing in quality items that last rather than 7. “7 tips to improve your financial wellness in 2025,” Canstar, 23 Mar
impulsive, short-lived purchases. 2025.
• Seeking financial advice early, especially during major 8. “Smart Money Strategies for 2025,” DPN, 31 Dec 2024.
life transitions or when facing rising debts, to develop 9. “Mastering intergenerational wealth transfer conversations,” Money
tailored plans that support wellbeing and long-term Management, 23 Jul 2024.
wealth. 10. Oliver Wyman, “3 Key Behavioral Trends For Wealth Management In
Notably, Gen Z and Millennials are embracing pragmatic Australia,” 25 Oct 2023.
approaches, from visible “loud budgeting” to creative ways 11. AMP, “The generational wealth gap and how to bridge it,” 6 Nov 2025.
of indulging in “little luxuries” without undermining overall

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