Average savings balance per generation: How do you compare?
With the high cost of living, more of us are dipping into our savings. Here's how much cash each generation has stashed away.
Have you ever wondered how your savings balance compares to your peers?
Finder's Cost of Living Report has revealed the average savings balance for each generation at the moment, so you can see how yours compares.
Average savings balances
Perhaps unsurprisingly, those in the Baby Boomer generation have the biggest savings balances with $51,000 in the bank on average.
Next up is Gen X with $41,000 in savings on average.
Millennials (or Gen Y) have an average savings balance of $27,000.
And the youngest generation, Gen Z, have an average of just $13,000 in savings.
Finder data also found that half of us (47%) have taken money out of our savings over the past year to cope with the rising cost of living.
So, how much money should you aim to have in your savings?
As a general recommendation it's suggested to aim for 3 months worth of living expenses in an emergency savings fund.
This is so that if you're suddenly faced without a job, you have some money to keep up with your regular living expenses for a while as you look for another job.
How to boost your savings balance
If you're looking at your savings balance and it's far below the average for your generation, the first thing to do is compare your savings account.
At the moment there are plenty of high interest savings accounts offering over 4% p.a. - and some are offering as much as 5.15% p.a.
Previous Finder data found as many as 1 in 2 Australians had their cash sitting in a regular bank account earning no interest at all.
If this is you, you're missing out on some very easy savings.
The first step towards keeping up with the rising cost of living is to create a budget, reduce your spending and look for ways to save. A high interest savings account can make your savings work even harder.
