Young Australians remain optimistic about their financial future despite being hammered by cost-of-living pressures in the last five years. New ING research shows that Gen Z (82 per cent) and millennials (74 per cent) are significantly more likely to feel optimistic about the year ahead than Gen X (52 per cent) and baby boomers (49 per cent).The figures are based on survey data of more than 2075 Australians aged 18 years and older.ING head of consumer and market research Matt Bowen told NewsWire that younger Australians were also likely feeling the pinch but were overall optimistic about the year ahead due to having time on their side. “The younger generation feel more optimistic and one of the reasons is the younger you are the more time you have to course correct,” he said. “Things might feel really tough now but over the course of a lifetime you can catch up.“There’s clearly high inflation, we have a war, there’s a cost-of-living crisis and slowing wage growth, so all of these things give people a reason to worry.”Mr Bowen pointed out that older Aussies might not have this time to fix financial problems as they approached retirement while noting older people typically had more complicated financial situations weighing on them, such as the family budget. Learnt the lessons of past economic shocksEven with rising costs, households are still finding small ways to get ahead. Australian Bureau of Statistics figures show yearly headline inflation fell from 4.6 per cent in March to 4.2 per cent in April.But the all-important trimmed mean inflation rate – which the RBA watches because it strips out volatile and seasonal items – rose to 3.4 per cent for the 12 months to April, showing underlying price pressures are still in the Australian economy.Both numbers are still well above the RBA’s inflation target of between 2-3 per cent.Mr Bowen said after years of higher inflation, Australians had learnt the right lessons to deal with cost-of-living pressures. “This is certainly not our first rodeo when it comes to macroeconomic complexity,” he said.“Younger generations in particular (experienced adulthood) through Covid, a couple of wars, geopolitical tensions, high inflation has been a challenge for many years and we’ve gone from low to high interest rates.“So their experience of the economic cycle has been quite compressed over the last little while and as a result they’ve learnt these things happen, but what is most important is the plays they make within individual circumstances to get ahead.”Small win economyDubbed the “small wins economy”, Australians have started focusing on everyday wins, including saving on the weekly grocery shop and using loyalty programs.According to the figures, 88 per cent reported an increase in grocery costs in the past year, with people reporting an average of $169 being spent on groceries each week, up from an average of $162 in 2023. But ING points out this is relatively modest compared with official inflation figures, as consumers actively adjust their spending to manage costs and keep grocery bills down. In part, this is due to Australians actively using loyalty programs, which are saving households on average $255. “Despite ongoing cost-of-living pressure, optimism remains,” Mr Bowen said.“Australians are managing money through repeatable, practical behaviours like budgeting carefully, seeking value, using loyalty programs, managing subscriptions, and juggling multiple apps. These tools help build a sense of control and resilience.”Big goals haven’t changedING research also found Australians’ major financial goals have not changed, even though households have to find new ways to get ahead.About one in three Aussies (34 per cent) reported they had plans to change their living situation in the next 12-24 months.Out of these Australians, 10 per cent plan to rent, 7 per cent want to buy a home, a further 7 per cent want to buy a home with family and 4 per cent want to rentvest – renting where you want to live, buying where you can afford. Mr Bowen said rising costs were changing timelines and forcing alternative approaches to home ownership.“Traditional markers like home ownership still matter, but they now sit alongside a more personal definition of value, one that prioritises flexibility, experiences and a stronger sense of agency,” Mr Bowen said.“We’re making more deliberate trade-offs, balancing financial realities with a clear intent to protect the parts of life they value most.”Australians are also looking to invest to get ahead. Thirty per cent of those surveyed say they are likely to invest in shares or exchange-traded funds in the next 12 months.Younger Australians are again more likely to invest, with 46 per cent of Gen Zers and 43 per cent of millennials stating a desire to invest as a way to get on top of cost of living, prepare for retirement or simply to take advantage of market conditions.