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In a study of 519 Australians aged 18–35 years, researchers found that young people cluster into three groups based on their real-world financial habits: Financial Explorers, Habitual Savers, and The Disengaged. The study focused on the pivotal transition into fulltime work; a moment when financial habits begin to solidify and compound over a lifetime. 

Funded by the Financial Planning Education Council, the study analysed patterns of saving, investing, budgeting and use of modern financial tools such as buy-now-pay-later and investment apps among young adults within five years of entering the workforce. 

The three distinct behavioural profiles identified: 

• Financial Explorers: highly engaged with their finances. They budget, save, invest and are also more likely to use products such as buy-now-pay-later. They tend to be confident in their financial abilities – sometimes overly so. 

• Habitual Savers: cautious and conscientious, prioritising traditional saving and avoiding debt and investing. They generally feel in control of their spending but may miss opportunities to build long-term wealth. 

• The Disengaged: limited active financial planning, little budgeting or regular saving, yet still likely to take on debt or use buy-now-pay-later. This group is more likely to experience financial stress. 

Lead author Dr Jennifer Harrison, Senior Lecturer in Accounting and Finance at ÌÇÐÄ´«Ã½, said the findings have important implications for financial education, policy, and support services. 

She emphasised the importance of meeting people where they are, not where we assume they should be, if we want financial education to work.  

“One-size-fits-all financial literacy programs are unlikely to be effective. Young Australians are not a homogeneous group when it comes to money. They bring different habits, confidence levels, and social influences into their financial lives,” said Dr Harrison.  

The researchers stressed the behavioural profiles aren’t a ranking system. 

“There’s no perfect money type here. Each group does some things well and others less so,” said co-author Dr Steffen Westermann, a Financial Planning Lecturer at Griffith University.  

Crucially, the research found ‘money type’ differences were not explained solely by financial literacy. Instead, social norms, perceived control over money, personality traits, and financial stress also played a significant role in shaping how young people behave with their finances. 

Associate Professor Elisabeth Sinnewe from QUT’s School of Accountancy said: “Interestingly, the move into full-time work is not a complete financial reset. Socialisation and disposition tend to reinforce existing financial behaviours.  

“Our research gives financial advisers, policymakers, and consumer advocates a real opportunity to meet young people where they are.” 

Instead of treating all young people the same, the research suggests more tailored approaches could better support different groups. For example: 

• help Financial Explorers better assess risk and navigate information sources. 

• support Habitual Savers to build long-term wealth through appropriate investing. 

• provide The Disengaged with simple, low-effort tools and support to reduce financial stress and build basic habits. 

The research has been published in Pacific-Basin Finance Journal and can be accessed here: .