Professor Robert Wood
Macquarie University, Australia
2025-2026 University of St Andrews Global Fellows
St Andrews University Business School
In many developed countries, the current generation of young adults is the first cohort since WWII whose financial wellbeing will be less than that of their parents. They are also the group most impacted by rising inequality and efforts to combat climate change. A longitudinal, multimethod exploratory study collected data from seventy young Australian adults (18 to 40 years old) over a period of 7 months, which included a significant rise in the cost of living. The results of this exploratory study are the basis for a similar study being planned for Scotland. We investigated several topics. This talk will report results for two of the topics studied; financial adaptation by young adults during the cost-of-living crisis and how young adults navigate the intersection of personal finance and climate-conscious decision-making. The results highlight the importance of operational flexibility for financial resilience, e.g. willingness to utilise available financial resources and products, to change lifestyle and consumption patterns, to find new sources of income, and to change or postpone goals. Personal traits were associated with financial resilience, notably optimism. Young adults care deeply about the environment but feel powerless to make a difference. Despite high interest in green technologies, cost and access remain prohibitive for young adults. Again, personality matters. Future-oriented individuals exhibit significantly more sustainable behaviors, such as lower fuel use, even after controlling for income, location, and environmental attitude. Policy implications and an agenda for further research are discussed.