Young people are struggling with the cost of living across New South Wales, with some turning to Buy Now Pay Later (BNPL) platforms to pay for everyday essentials.

New research by the Office of the NSW Advocate for Children and Young People – which was first reported in The Sydney Morning Herald – has uncovered evidence of young people using Afterpay and Zip to pay for groceries, medical bills, and car repairs. 

The research also found the biggest area for concern for young people is the cost of housing. 

76 per cent of young adults say they’re spending more on housing than they were twelve months ago, while 65 per cent say they’re spending over a third of their total income on accommodation – spending more than one-third of income on housing costs equates to housing stress.

This is an experience that is being felt in Kiama, with renters spending approximately 35% of their income on housing.

Advocate for Children and Young People, Zoe Robinson, says soaring costs are forcing young parents to make difficult decisions.

“Sitting in with young mums in one consultation, I was distracted and often found myself having to double check what was being said…they are in situations where they are choosing food for their baby, over feeding themselves”, Ms Robinson said.  

“One mother talked about being concerned to take her baby to a specialist appointment because she was worried she couldn’t afford what her baby needed”. 

The publication of the report comes as fresh data from the Australian Bureau of Statistics (ABS) shows living expenses continued to increase over the September quarter. 

According to the ABS’ Living Cost Indexes (LCIs), the cost of living has gone up for every household type including employees, pensioners, and self-funded retirees. 

Employee households faced the steepest increase in costs over the September quarter, driven by more expensive mortgage repayments. 

In a speech at Parliament House in October, Member for Gilmore Fiona Phillips said the Federal Government’s top priority is “addressing this inflation and cost-of-living challenge”. 

“…People can be reassured that our combination of budget restraint, the first budget surplus in 15 years, getting inflation under control and targeted cost of living relief is helping put more money back into people’s pockets”, Ms Phillips said.