Stats NZ has reported food prices rose 6.8 per cent in February from the same time last year.
This is while independent economist Cameron Bagrie predicts inflation will likely rise from 5.9 per cent to seven per cent in the next quarter or two.
The impact has been severe for New Zealanders across the board – but the Otago University Students' Association fears it will lead to students focusing less on the basics such as healthy eating, and taking on more jobs to support their study.
Finance and Strategy Officer Emily Fau-Goodwin said she's now seeing the hours students are spending at work increasing.
"I think in terms of students struggling, obviously rent rises everywhere. But it is also having an impact on food - how people feed themselves week to week and what kind of things they're eating.
"There is less focus on trying to be healthy and more focus on "can we get enough to feed ourselves and the flat?"
Fau-Goodwin is concerned students are often under the weather at the best of times.
To help, work has been done with Otago University and the OUSA teaming up to deliver care packages to students isolating with Covid that may be struggling financially.
Otago Polytechnic has also played an important role, delivering meals to fellow students self-isolating across Dunedin.
But the stories of young Kiwis struggling to have a work/life balance have flooded in.
Amy Williamson, 25, has spent the last two years getting up to work at 3.45am for a few hours before going off to study for the rest of the day.
Until now, she has balanced working as a cleaner and in hospitality to complete her studies - and dreams of buying a house.
But even landing a fulltime job, she has little left as prices for essential items soar.
She said it was even tougher while she was studying working two jobs to maximise her earning potential.
"But it almost seems pointless with how much I get taxed".
Civil engineer student Conor White, 25, said the difficulties are balancing how much to spend on enjoying the present versus trying to save something for the future.
"If you eat cheaply, live in average accommodation, have no family, work forty plus hours and do a few activities, it is feasible to save money."
In a "similar vein" it is difficult to find rental housing that is quality enough not to "hate life" - but affordable enough to have some leftover money, White said.
But it is even worse in Wellington.
Consumer Price index figures released by Stats NZ in January showed rental prices increased by 5.5 per cent in Wellington, 3.3 per cent in Canterbury and 2 per cent in Auckland.
Moving from Wellington to Christchurch to finish her studies was a logical step for Lauren Walker.
While the diversity and culture of the capital make it tempting to move back, Christchurch is more affordable.
During her time in Wellington, the 22-year-old found the average cost to rent a flat is $200 weekly, while in the south she pays $110.
"I definitely see myself staying here (Christchurch) in order to try to save some money".
What she has been surprised by, is the number of people a few years older than her, buying homes.
Walker said the concept of buying a home is something she has never even thought of.
"I would love to live in Wellington but I couldn't even think of buying a house because I don't know where you would be able to afford to and the quality you would be buying".
While there is an expectation the housing market will slow down, some first home-buyers still see the dream of owning a house as far away.
For media planner Jamie Edwards, 25, getting on the property ladder in Auckland is at the top of the list - while not compromising on an eventual move overseas.
But it's the same juggling act of trying not to sacrifice missing out on everyday life, to try and make huge savings.
"I think it can be a little bit stressful. Sometimes I feel a little bit guilty if I am going out for dinners and I know it would be a lot cheaper for me to stay in and cook our meals.
"I definitely do have mates that when we do see each other we try to do things as cheap as possible. We'll do things like go for a walk because I know they're trying to save as well".
Edwards said many want to get out and support businesses and restaurants post-lockdown.
While saving is as challenging as ever, Westpac's financial wellbeing programme manager Warren Ngan Woo is upbeat that young people can smash their financial goals.
The most common financial goal he has found amongst 20-somethings is saving for a property, followed by repaying debt as quickly as possible. Buying a car is another big-ticket item.
A quick survey of young people in his office found some common mistakes.
"I had a good conversation with some millennials in my team. One of them noted not keeping track of small spending so it generally adds up."
Ngan Woo said another key point is financial goals need to be made realistic otherwise people tend to overcommit and dip into their savings.
One of his top saving tips is the "50/30/20" rule.
That means putting 50 per cent towards needs/utilities, 30 per cent towards wants and self-care, and 20 per cent to savings - and changing the percentages to suit individuals' needs.
Ngan Woo said it's just as important to have a savings account booked up for unexpected expenses.
"There's a good saying I like to tell young people about - the saying is a budget is telling your money where to go instead of wondering where it went".
