Australians are becoming savvier savers
Three quarters of Australians today regularly maintain a budget, a big jump from 2005.
Three in four Australians today (74.4%) say they regularly maintain a budget, compared to just 59% of Australians back in 2005. The new research by Gateway Credit Union reveals Australians are becoming more savvy with their savings, and comes just in time for World Savings Day on 31 October.
Not only do more Australians actively keep a budget, but among those who don't keep a budget the reasoning behind this is also quite positive. Of those who don't maintain a regular budget, 60% say it's because they already have a good idea of what they can afford so don't feel they need to rely on a budget.
Only 13% of Australians who don't have a budget say the reason is because budgeting is too difficult, too time consuming or too confusing. This is a huge decrease from 2005, when almost half (45%) of Australians that didn't have a budget said it's because budgeting was too difficult.
Gateway CEO Paul Thomas says the plethora of savings tools available is making it easier for Australians to manage their money. "Better technology and apps have a part to play in this trend. Greater access to digital tools and online information has made it easier to be more engaged and to take a hands-on approach anytime, anywhere.
"Not to mention in the current context that is seeing more and more households squeezed from a financial perspective, thanks to an increasing cost of living and stagnant wages, many households are forced to tighten the purse strings and become more stringent with their finances,” he said.
Thomas says that while it's great to see so many Australians maintaining a budget, it's important that every budget has an element of savings, rather than simply controlling how much you're spending. “That means a dedicated account that you consistently add to. Many neglect their savings by leaving it in an everyday transaction account that usually has associated monthly account fees and very low-bearing interest or no interest at all. Instead, Australians could have their money work harder by utilising a high-interest saving account like a term deposit."
World Savings Day is an ideal opportunity for Australians to reassess their budget and savings strategy. If you're not happy with your current savings account, check out our comprehensive guide and compare high interest savings accounts today.
- Savings accounts and term deposit interest rate updates: November 2018
- Australian savings account round-up
- HSBC raises interest rate on Serious Saver account to market-leading 3.10%
- Grandparents can save parents $6,344 a year in childcare costs, per child
- Financial stress keeping Australians awake at night