Less than a quarter of Australians are satisfied with their financial position, with younger generations increasingly relying on grandparents for support.
Research conducted by investment group MLC found 70 per cent of people said financial wellbeing was important to meeting life goals, but only 23 per cent were happy with their money situation.
MLC's Financial Freedom Report, which surveyed more than 2500 people, also found one-in-three were taking steps to make financial dreams.
As cost-of-living concerns and stubborn inflation impact on household budgets, the report found just 25 per cent of respondents were prepared to handle unexpected financial challenges.
Some 41 per cent of respondents said they worried about their finances all the time or often.
MLC head of technical services Jenneke Mills said the findings showed many people were vulnerable to financial shocks.
"Australians view financial wellbeing as the ability to meet their financial needs, live free from financial stress or worries and have the financial freedom to make independent choices," she said.
"In today's world, developing good financial habits, underpinned by family support, is key to building confidence and achieving those dreams."
The findings also showed grandparents were playing a larger role in helping younger generations financially, with more than half saying they are assisting monetarily or plan to do so.
"Family support, especially for younger generations, goes beyond providing short term relief - it fosters a foundation of financial security and confidence," Ms Mills said.
"By offering support, whether it be through financial education or practical assistance, parents and grandparents are helping to shape how young Australians approach their financial futures."
The findings showed 60 per cent of those in generation Z received financial support from grandparents, along with 56 per cent of millennials, when they reached adulthood.
That compares with 20 per cent of generation X and six per cent of baby boomers.
Cost-of-living was identified as the biggest barrier to financial aspirations, with 62 per cent saying it was a factor, followed by current levels of income (34 per cent), interest rates (25 per cent) and not owning a home (17 per cent).
Those in generation X were the most likely to worry about cost-of-living issues, followed by generation Z, millennials and baby boomers.
