Financially savvy is now cool, with recession fears, low interest rates and home ownership aspirations meaning young Australians are more savings-focused than ever before.
According to research from UBank, 75 per cent of young Australians are branding themselves as savings-focused, and at the same time, only one in three (or 33 per cent) is losing sleep over money, down by over 20 per cent from last year.
Commenting on the findings, UBank CEO Lee Hatton stated: “Millennials get a bad rap when it comes to their finances, but these results show something that we’ve known for a long time – that this age group certainly has big goals in their sights and they’re willing to make tough choices to get ahead.”
What are Aussies sacrificing?
Brunches, ride-sharing apps, streaming and subscription services are all apparently being scrapped as Australians look to get ahead on their saving goals.
The most common sacrifice is dining out, with 61 per cent of respondents swapping nights out for nights in. The research revealed younger Aussies are going dining out less than older Australians, with more than three in four (76 per cent) survey respondents acknowledging they avoid eating out.
The morning coffee has also been cut for 41 per cent of young Australians, along with subscriptions like gym membership and services.
Even more telling is the fact that 35 per cent are cutting back on private health insurance, and 29 per cent are cutting back on home content or car insurance.
Those aged 25–34 are even more likely to skip insurance to get ahead: 44 per cent admit to having dropped health insurance or other types of insurance.
Are Australians saving more?
Despite the research showing that Australians feel they are more financially literate, the Australian household saving rates have dropped from 3 per cent to 2.70 per cent in the second quarter of 2019.
For one-third of Aussies, the way they spend money makes them feel like they haven’t saved enough for their age, with this number spiking to 46 per cent for millennial respondents.
Many Australians aren’t confident about their ability to save for big-ticket items, either. One-quarter say their spending makes them feel like they won’t be able to afford a home; nearly half of those aged 18–24 say they feel this way.
A whopping 77 per cent of Australians also say that dipping into their savings causes them anxiety, with UBank using this finding to underscore the importance of preventative budgeting and saving.
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We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
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