Australians are regularly dipping into their savings
We just can't seem to keep our hands out of the cookie jar.
Almost half of all Australians admit to regularly dipping into their savings, according to new research released by digital bank UBank today. This is despite having clear savings goals, proving the temptation is just too hard to resist for 45% of us.
Previous UBank research released in July revealed that this consistent dipping into our savings is costing Australians $2.6 billion a month and a staggering $31 billion each year. For one-third of us, all our money is gone by payday.
Today's research revealed that 62% of Australians are saving for a big-ticket item, like a holiday or a new car. However, three-quarters of these people with clear goals are among those who dip into their savings weekly. This contradicts previous research by Westpac that suggested Australian millennials with regular savings habits and specific goals were twice as likely to save.
UBank's research also revealed that only 11% of Australians have a strict budget in place, and 69% have at least one credit card with an average debt of $3,272, which is worrying considering we are fast approaching the busy Christmas period where our spending typically increases.
To help Australians get their saving on-track, UBank has this week launched a new-and-improved iOS mobile banking app with new tools to help users track their spending and easily identify merchants they've shopped with.
Announcing the new streamlined mobile banking experience, CEO at UBank Lee Hatton said, "We are heading into a time of year that sees increased financial pressures for many. From gifts to holidays to hosting Christmas get-togethers, Australians are challenged with opening their pockets more than ever. For all those prone to double dipping, we are encouraging people not to lose sight of their long-term financial goals.
"Our focus is on disrupting traditional banking and liberating the experience for our customers, arming them with the tools they need to keep them on track and achieve their future savings goals. With a new look banking app, consistent low rates and no fees, we want to encourage people to regain control so they can enjoy more financial freedom."
Keen to get your savings on track? Start by comparing our range of high-interest savings accounts.
- Shopping online during lockdown? 6 ways to be savvy
- From $10K debt to $50K saved: How I fixed my finances in 4 years
- How to get Virgin Money’s new 1.50% p.a. bonus savings account rate
- Pocket pay-raise: Aussie kids receiving $2 billion in allowance each year
- Up Bank sold for $116m: What this means for customers