Shifting Paradigms: The Intergenerational Wealth Transfer and a University Students Guide to Personal Finance

A trend report on the intergenerational wealth transfer and the women who will be its beneficiaries.

"The greatest destroyer of wealth isn’t tax or markets but capability asymmetry - when assets are passed on before financial understanding is there." - Susie Grehl. Commonwealth Bank Executive General Manager, Wealth and Private

Understanding the intergenerational wealth transfer

The number of High Net Worth Australian women has been growing for decades. In the past year alone, the number of female millionaires grew 5.7% compared to just 3.6% for men (JBWere, 2025). But it isn’t just self-created wealth that is changing historical paradigms, we are approaching the greatest wealth transfer in our nation's history.

Over the next decade, Australian women are set to inherit $3.2 trillion.

This represents a shift in power. Women not only outlive men but are increasingly the ones holding control over the family estate. Current data shows the ‘Oldest Daughter Effect’ is in full swing: she is 50% more likely to manage the family's estate than any other sibling (JBWere, 2025). Coupled with the rising incidence of later life divorces, where women over 50 are becoming the primary beneficiaries of asset splits, it is clear the face of Australian wealth is changing.

The Status Quo

We are seeing a massive opportunity in the financial services sector, where women have historically been under-catered to. Yet, on a granular level, women are less likely to have established financial literacy.

We see this in:

Formal Education: Women remain underrepresented in Finance and Economics enrolments nationally. This limits professional networks and reduces knowledge transfer to women within the broader community.

Financial Literacy gaps: In Australia, only 48% of women are considered financially literate, compared to 65% of men (UNSW, 2026).

It is important to acknowledge that this wealth transfer will widen the gap between those with inherited assets and those without. However, it simultaneously represents a historic opportunity for women to gain greater financial autonomy and to bridge the gendered wealth divide.

The Psychology of ‘Future You’?

While we understand the importance of building our wealth independently, and obtaining financial literacy, our brains are wired to maximize the benefit we experience in the present.

In Economics we refer to this as Discounted Utility: our natural tendency to prefer a smaller reward today over a larger one later (Samuelson, 1937). In Psychology, it is suggested that self-control is key in the struggle for delayed gratification (Click here to see children tackle the marshmallow test!). Furthermore, it is theorised that we conceptualise our future selves essentially as strangers, leading to decreased engagement in long-term saving (Hershfield, et al. 2014).

Being aware of these cognitive traps is the first step. Personal Finance does not need to be something for ‘future you’ to deal with, it can be something small, incremental and without great ‘present self’ sacrifice.

A Uni Student’s Guide to Personal Finance

Many students do not consider financial goals throughout their time in university, rather seeing studies as a stepping stone to setting themselves up once in the formal workplace - missing valuable early time in the market. So what can you do?

Set micro goals: Don’t just save, plan. Do you want to own property? Summer in Italy? Have your name immortalised on a building at USYD? I recommend making a spreadsheet to track your savings and net worth. Interventions that encourage people to consider future uses of money have been shown to increase patience on intertemporal choice tasks - making it easier to choose a $75 gift card in three months over a $50 one today (Weber, et al. 2007).

Don’t ignore your super: Take advantage of the government super co-contribution scheme, if you earn under $62,488 in the 2025-2026 financial year and make an after tax contribution up to $1000 dollars, the government will co-contribute up to $500 (ATO, 2026). That is an immediate 50% ROI. Assuming annual 10% returns, that single $1500 could grow into $67,889 by the time you reach 60.

Invest Early and Start Small: Time is your most valuable asset. As ‘The Sweet Treat Fund’ shows, if you invest just $20 a week (forgoing two coffees and a pastry), during your three years at university, and then stop entirely, the investment could grow into $148,742 by age 60 (assuming 10% market returns). By starting at 19 instead of 29, you let compounding do the heavy lifting.

Try toggling the interactive graph above!

Have honest conversations with your parents about their retirement plans and any future role you may have in their estate. Chat with friends. Help build the community of knowledge that women have historically lacked.

Presently, Australian women are paid 11.2% less in the private sector and have accrued 25% less super at retirement (WGEA,2026) (ASFA, 2026). To close the wealth gap is to be mindful of inequality, and proactive in your own future.

Until next time,

WIF 💙

Written by Asha Osborne

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Association of Superannuation Funds of Australia. (2026). Superannuation account balances by age and gender.

Australian Taxation Office. (2026). Super co-contribution income thresholds 2025-26.

Chow, E., & Livermore, T. (2025, October 23). Building interest in economics: The role of early exposure. Reserve Bank of Australia Bulletin.

Commonwealth Bank of Australia. (2025, November). Intergenerational wealth transfer and the property market.

Hershfield, H. E., Goldstein, D. G., Sharpe, W. F., Fox, J., Yeykelis, L., Carstensen, L. L., & Bailenson, J. N. (2011). Increasing saving behavior through age-progressed renderings of the future self. Journal of Marketing Research, 48(SPL), S23–S37.

JBWere. (2025). The growth of women and wealth: A closer look at Australia’s growing cohort of high-net-worth female investors.

Samuelson, P. A. (1937). A note on measurement of utility. The Review of Economic Studies, 4(2), 155–161.

University of New South Wales. (2026, January). Addressing gender gaps through financial literacy. UNSW News.

Weber, E. U., Johnson, E. J., Milch, K. F., Chang, H., Brodscholl, J. C., & Goldstein, D. G. (2007). Asymmetric discounting in intertemporal choice: A query-theory account. Psychological Science, 18(6), 516–523.

Workplace Gender Equality Agency. (2026). Employer gender pay gaps report 2024-25.