Spenders vs savers: The money mindsets of Australians revealed
Australians are divided by their attitudes to spending according to new research by Finder.
A new nationally representative Finder survey of 1,004 Australians revealed that almost two-thirds of Australians (61%) consider themselves "savers", while the remaining 39% are self-professed "spenders".
Of those who save their money, 44% are predominantly frugal but admit to splurging from time to time, while 17% are steadfast savers who like to be prepared.
Spenders are made up of those who still manage to save a little (30%) and those who don't save anything (9%).
Taylor Blackburn, personal finance specialist at Finder, said that an individual's "money mindset" is the key driver behind their spending habits.
"Your underlying beliefs about money influence your purchasing decisions, and ultimately, your long-term financial position.
"Some savers may be afraid to spend money if they've been in a vulnerable position in the past, while others may have a financial goal they're working towards.
"There's nothing wrong with splurging occasionally, but spenders can self-sabotage if they're prone to impulse buying and too much retail therapy.
"Becoming aware of your money mindset is an important first step towards taking control of your finances," Blackburn said.
The research also found that the majority of baby boomers (69%) are savers, compared to just 51% of millennials.
Blackburn urged Australians to use the new year as a chance to tune-up their finances.
"Just as marriages and friendships require work, so does your relationship with your finances.
"The new year is a great time to review your money mindset and hit reset if necessary.
"What feelings do you have around the state of your spending? Are you sabotaging yourself? Could you educate yourself on a particular area of your finances?
"It's never too late to start over and regain control," Blackburn said.
|Are you a spender or a saver?|
|Mostly a saver, but I splurge from time to time||44%|
|Mostly a spender, but I save a little||30%|
|Definitely a saver, you can never be too prepared||17%|
|Definitely a spender, I'll make more tomorrow||9%|
Source: Finder December survey, 2020
3 financial habits to start in 2021:
- Track your spending. This is the most effective way to keep on top of your finances. The Finder app can help by tracking and categorising your spending across your everyday, savings and credit card accounts.
- Save 20% of your salary. Everyone's financial position is different, but this is a good starting point if you're unsure how much you should be putting away. Even a smaller increment of 5% is better than nothing – consistency is key.
- Review your financial products. When was the last time you reviewed your home loan or credit card rate? Interest rates have never been lower, so if you haven't switched in a while, there's a good chance you could be paying too much. Take some time to compare your options online at Finder.
Want to get serious about your savings this year? Find out more about how a high-interest savings account can help you reach your money goals sooner.