Assets over wages: young Aussies are redefining the path to property ownership

Young Australians are rewriting the rulebook on financial success, shifting focus from climbing the career ladder to building wealth through ownership, according to a new research report. 

Instead of chasing higher pay, many are prioritising assets – like shares, ETFs and property – as the real drivers of long-term financial freedom. That’s the key message from the 2025 Stake Ambition Report , a new study from online investment platform Stake, which surveyed more than 2,000 Australians about their money goals, habits and motivations. 

The report paints a clear picture of a nation dividing into two camps – ‘starters’ (those investing via online share trading platforms) and ‘stallers’ (those yet to start their investment journey). What’s emerging is a confident new investor class determined to grow wealth in an economy where relying on income alone may no longer cut it.

The breakdown of the traditional path

Hard work used to be the cornerstone of success, but that belief is being challenged. When Australians were asked if “what you own is more important than how hard you work,” nearly twice as many agreed than disagreed.

According to Stake’s study, this mindset is even more pronounced among younger generations. Around seven in 10 (70%) Gen Z and millennials say owning assets is more important for getting ahead financially than climbing the career ladder. By contrast, fewer than half of baby boomers share that view.

Behind this shift is a confronting reality: the study found that more than half of young Australians – 55% of Gen Z and 49% of millennials – now think what you inherit matters more than how hard you work. It’s a sign that the so-called ‘inheritocracy’ is reshaping how people think about success.

Even so, there’s optimism among younger investors. Those already trading online but not yet on the property ladder are nearly twice as likely as non-investors to believe they can afford a home without relying on an inheritance.

Investing momentum and the emotional barrier

Despite cost-of-living pressures, young investors are staying the course. The report shows 73% of investors have added to their portfolios in the past six months – a figure that jumps to 85% among 18-24 year olds. And it’s not short-term speculation either: two in three investors (67%) held on to all their shares over the past year.

For many, the confidence boost from investing is just as valuable as the financial gains. The report found starters are 41% more likely than stallers to believe they can succeed financially even in a tough economy (69% vs 49%).

Still, nearly half of Australians aren’t investing at all. The most common reason? A belief they don’t have enough money to get started – cited by 56% of non-investors. But this hesitation might be more emotional than financial. In fact, over one in three non-investors earning more than $151,000 still say they can’t afford to invest.

“The research shows that, to overcome behavioural barriers and build wealth, a confident mindset or emotional state is at least as important as sheer financial acumen,” according to The Behavioural Architects partner Belinda Aanensen.

The hidden cost of playing it safe with savings

Interestingly, 70% of those in the study who say they lack funds have still managed to put money into savings over the past six months. It suggests the biggest hurdle isn’t a lack of cash – it’s confidence. That could explain why most investors are now turning to friends, peers or social media for guidance, rather than relying on traditional advice from parents or banks.

“While savings accounts might feel psychologically safer, they don’t come close to beating inflation in the long term. This means you’re quietly losing money every year,” Morningstar associate investment specialist Simonelle Mody said.

Mozo’s recent analysis suggests the warning is well justified. The average savings rate on Mozo's database currently sits at 3.09% p.a. (as at 15 October 2025), but inflation is around 3.0%, so the real return is just 0.09% p.a., meaning your money’s purchasing power is barely growing.

It's worse for “unconditional” savings accounts – especially with major banks. The average unconditional rate on Mozo's database is just 0.65% p.a. (as at 15 October 2025), which, adjusted for inflation, translates to a negative real return. In other words, your money's actively shrinking.

Still, that doesn’t mean savings accounts have lost their place. For some, a high-interest savings account can play an important role in managing short-term needs or building a financial buffer. Meanwhile, investing may be a longer-term way to grow wealth, depending on your individual circumstances and comfort with risk.

Simply put, savings can offer stability, while investing can potentially build momentum.