The true cost of young Aussies’ pricey passions

• New research from Allianz Australia reveals that while young Australians wouldn’t give up an expensive hobby¹, they’re unsure how much they’re spending on it² or what their items are collectively worth³.
• When it comes to financial literacy, over one third of young Australians don’t feel confident⁴, with the rising cost of living leaving them feeling nervous about the future⁵.
• Allianz Australia is encouraging young Australians to learn how to protect the items that make up their hobby.

Whether it’s between the pages, on the field or in the metaverse, the majority of young Australians have a hobby⁶ that they’re passionate about and not much can get between it and them. Despite the rising cost of living causing increasing concern, new research has revealed that even if their hobby is expensive, most young Australians won’t consider giving it up (59 per cent).

The research from Allianz Australia found that 2.3 million young Australians are dedicating at least one hour per day (38 per cent) to their hobbies, which range from exercise like hiking, yoga and the gym (57 per cent), to books (48 per cent), gaming (42 per cent) and makeup (31 per cent).

Despite the daily commitment and the majority factoring their hobbies into their budgets (76 per cent), almost half of young Australians are unsure how much money they’ve spent on their hobbies over the last year (45 per cent) or how much the items that make up their hobbies are collectively worth (53 per cent). In fact, almost one eighth have an estimated value of over $5,000 (11 per cent).

This comes as Allianz Claims and Policyholder Data reveals Australians aged under 26 have an average claims cost of $3,700⁷. With less than half of young Australians admitting to not having insurance (44 per cent) or being unaware of what is covered under their policy if they have one (41 per cent), Allianz Australia is encouraging young Australians to learn more about protecting the items that make up their hobby.

Clinical psychologist Jaimie Bloch said, “The hobbies that young Australians engage in have a direct-link to identity⁸ exploration and self-expression, are a great way to learn new skills⁹ and an effective way to manage stress¹⁰. This connection and relationship extend to the items that are integral to their hobbies and should they become lost, stolen or damaged, this can cause significant emotional distress. Understanding the collective value of your hobby is a great first step to ensuring they are sufficiently protected, and you have peace of mind.”

According to Allianz’s research, over one third of young Australians admit they don’t feel confident with their knowledge of financial literacy (36 per cent) and are not willing to reveal their spending habits (47 per cent) and feel embarrassed by their lack of knowledge (29 per cent) around their finances.

To add to this, the recent rise in the cost of living has left young Australians feeling unsure of how this will impact them in the future (44 per cent), and being more critical of their spending (40 per cent). In fact, takeaway food and coffee (75 per cent), going out for dinners (63 per cent) and new clothing/shoes (57 per cent) are the first to be cut in an effort to save.

A majority of young Australians haven’t considered implementing a plan to help protect their hobby items because they are worried they don’t have sufficient savings to protect them (43 per cent). 

Rachael Poole, Head of Home, Allianz Australia, said, “It’s not surprising that the rising cost of living has left young Australians feeling unsure of their prospects and looking for short term solutions to help them out now. 

Hobbies are an important part of our lives and are worth protecting for the long run, which is where insurance can come in. However, our research shows that awareness about the role that insurance can play is going unnoticed. At Allianz, we want to encourage young Australians to uncover the value of their possessions and consider whether home insurance is right for them.”

Learn more about how you can protect your passions by visiting our Home Insurance calculators  page.

• Store them safely: To help look after your hobby items, make sure you’re keeping them in a safe spot. Also be mindful of rain, hail, wind or direct sunlight – if you have insurance, some items may not be covered if left outdoors or at all, you should review your insurance to ensure you are adequately covered. 
• General upkeep: It’s also worth undertaking general maintenance of your items, such as cleaning, to ensure they’re kept in optimal condition.
• Keep track of what you have: As your hobby grows, so can the items you have for it. To help remember what you have, take photos and create an inventory that clearly outlines what you own.
• Be aware of how much you’ve spent: Costs associated with your hobbies can pile up quickly. With your inventory, keep track of how much you’ve been spending. Link this to your budget tracker to have a holistic view of where your hobby fits into your spending.
• Cover your hobbies: Your hobbies can be worth more than you realise, so make sure you have adequate insurance in place. Contact us to learn more about Home and Contents insurance, and whether you need optional extras like Portable Contents and Accidental Damage.