In our latest Financial Health Barometer, we uncovered some scary facts about Australian’s savings habits.For example:
- 40 per cent of Australians save into their transaction account, meaning they are missing out on $2.3 billion in potential interest*
- Thirty per cent of Australians working full or part-time feel like they are always in the red and 23 per cent are kept up at night by their finances
- The average Australian could live on their savings for only four months
- Younger Australians are guilty of checking their weight more frequently than their bank balance with almost a third (29 per cent) of 18-29 year olds checking their weight once a month, while only 17 per cent checking their bank balance as frequently
- Shoes are the most regretted impulse purchase for Australians!!
Australians work hard for their money and we want to ensure they’re making the most of their cauldron of savings so they can make the most of life.
With one in five working Aussies being kept up at night by their frightening finances, our research aims to arm Aussies with insights into how they can save more effectively and the trends and cobwebs that are potentially affecting their savings trajectory.
Good savings habits don’t have to be complex, whether an individual saves into a transaction or higher interest savings account, how frequently people think about their finances and how often they check their bank accounts all contribute to people feeling more financially in control. The lesson we continually learn from our FHB research is that people who are motivated about their finances and have good savings habits are happier about life.
Here are some simple tricks that will lead to savings treats and ensure you don’t have a fright when looking into your finances:
- Do a stock take of what you’re spending your money on every month and set up a simple budget. This always helps you to identify where you’re wasting money.
- Pay down debt. If you’re funding your lifestyle through expensive credit card debit you’ll never be able to get a savings plan going.
- Know the interest rates attached to all of your accounts. Making sure you’re getting the best rates available and using the right accounts for your situation will mean you make the most of the money you have. Simple tactics like swapping from a transaction account to an account that earns a high interest rate will make all the difference.
- Start as early as you can. There’s no time like the present to set up an automatic savings plan to improve your finances and what you do now will boost your savings in the future.
*(^Roy Morgan Single Source, 12 months to April 2015 (n=33,630) Australians aged 14+ years who hold a transaction account).