44% of millennials ditching insurance to save money

Posted: 30 September 2019 9:01 am
News

Man on laptop looking at finances. Almost half of Australians aged 25-34 are going without private health insurance and car insurance in order to save.

New research by UBank released today has revealed some of the things Australians are going without in order to save more money. There are the usual suspects of coffees and eating out, but the number of Australians going without insurance to help them save is somewhat staggering.

UBank's research found that 35% of Australians are cutting back on private health insurance to save money, and 29% are cutting out other insurances like home, contents or car insurance. The number is even higher among younger Australians, with 44% of those aged between 25 and 34 admitting they've dropped their health insurance or other insurances in order to save.

The most common sacrifice Australians are making to help them save is eating out, with 61% of Australians surveyed saying they've cut back on this. Following this, 41% of Australians have cut back on coffee and subscriptions for the gym and Netflix.

More ways Australians can save money

Despite the sacrifices Australians are making, a lot of people still feel anxious about their savings. A bit under half (40%) of those aged 18 to 24 don't think they'll ever afford a home because of their spending habits.

For young Australians trying to save, cutting out insurance cover and other services isn't the only option. You could consider switching to an extras-only health insurance policy to save money on the services you do use (like the dentist). And instead of trying to spend less, you could try to earn more with a side hustle.

UBank's research also found that only 12% of Australians are using a budgeting tool or money saving app to help them save.

UBank CEO Lee Hatton said tools like UBank's Free2Spend tool can help Australians budget and save for a larger goal. Free2Spend is a feature offered within the UBank mobile app that calculated the dollar amount that the customer is free to spend each day, based on the savings goals they've set.

"Since launching, UBank customers using Free2Spend have saved $109 million against a combined goal value of $490 million. The average goal is $40,000 per person. And, customers who have Free2Spend login and check their accounts once every two days (on average), compared to customers without Free2Spend, who are checking their accounts approximately once a week."

Looking for more ways to save? Here's 50 money tips to help you save more and spend less.

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