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Despite improving wealth, Generation Y is the most likely to suffer from financial stress, according to a study.

While Gen Ys are more likely to claim they are better off financially than last year, compared to Baby Boomers and Generation X, they are also the most likely to worry about money, a RaboDirect barometer shows.

Almost half (47 per cent) of Gen Ys said they had financial doubt, compared to 35 per cent of the remaining cohort.

"Young people face challenges that are unique to their generation. Housing has arguably never been more unaffordable, even with historically low interest rates, house price growth is pitted against slowing earnings growth," Greg McAweeney, Executive General Manager from RaboDirect said.

However, Gen Y was also the only generation to report an increase in impulsive purchases, with more than half (55 per cent) citing beauty treatments and visiting a hairdresser as "essential to their wellbeing".