Is having a goal the key to saving money?
New research shows millennials with a specific goal save more than those who don't have a target.
The Internet is full of tips and tricks to help you save money, some far more useful than others. But could the key to saving money be as straight forward as setting yourself a goal? New research by Westpac suggests this is the case, with two out of three Australian millennials believing they could save more if they simply had a goal in mind.
The research reveals that Australian millennials with regular savings habits and specific goals were twice as likely to save, compared to their less goal-oriented friends. Of those millennials with savings goals, 41% were likely to save $500 each month, compared to only 22% of those with no set goals.
A quarter of millennials (23%) who admit to having poor, irregular savings habits feel negative about their ability to reach their goals. On the other hand, only 5% of those with regular savings habits feel negative about reaching their goals, suggesting the more you interact with your savings, the more positive you'll feel about your finances.
In other words, sticking your head in the sand and hoping for the best isn't helping.
What are millennials saving for?
The good news is that most of the millennials surveyed (95%) were saving for at least one goal. The top savings goal was a home, with 41% of millennials saving for this. The same amount (40%) say they are saving for a rainy day, and 38% are saving for travel.
This week, Westpac has launched its new savings account, Westpac Life, to help Australians set savings goals and track their progress. The new savings account enables customers to set up to six personalised savings goals through the one account, and the account is optimised for mobile use.
“Our research shows that one in five millennials are using different savings accounts to manage different savings goals. Westpac Life is simple and flexible by allowing customers to have multiple goals in a single account and visually tracks progress against achieving those goals," said Westpac head of savings and investing needs Katheryn Carpenter.
"We know setting up a regular saving behaviour can help people, in particular millennials, feel more confident and in control of their finances and their future. Westpac Life helps by encouraging people to make conscious choices about their savings goals," she said.