We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Rising Costs Challenge Australian Savings: New Survey Insights
Rising Costs Challenge Australian Savings: New Survey Insights
A recent survey of 1,005 Australians highlights that nearly a quarter of participants (24.68 percent) could only support themselves for a month or less on their savings if they encountered a job loss or an inability to work. This statistic drops to 12.04 percent for those stating they could last up to two months, while a more fortunate 16.52 percent affirmed they could sustain their lifestyle for a year or more on their savings.
Chris Ford, a spokesperson for Compare the Market, remarked on the situation, stating, "The results of this study underline the tough economic environment many individuals and families are grappling with daily, as they navigate multiple interest rate hikes and inflation surges."
One particularly striking comparison is that Australians had higher debt levels than their American and Canadian peers. This trend is most pronounced among recent homebuyers, especially those under 41 years of age. The average Australian monthly savings figure stands at AUD 964, despite these financial hurdles.
Ford emphasized the importance of strategic financial planning, noting, "Savings remain crucial. That's why making informed choices on essentials—like insurance, home loans, electricity, and fuel—can aid in building a robust savings buffer."
The survey also included responses from 1,003 individuals in the United States and 1,002 in Canada. Approximately 24.23 percent of U.S. respondents could live on their savings for one month or less, while Canada reported a similar figure at 24.25 percent. Notably, both countries fared marginally better than Australia in terms of savings longevity, with 15.85 percent of Americans and 12.97 percent of Canadians able to last 12 months or more on their savings.
Debt comparisons showed that Australians hold the highest amounts, encompassing student loans, home loans, personal loans, and buy-now-pay-later (BNPL) debt. Australians owe, on average, AUD 145,140 (USD 93,935), compared to an average personal debt of USD 50,157 for Americans and CAD 50,967 (USD 37,032) for Canadians.
Additional findings reveal demographic nuances across countries. Americans and Canadians aged 26-41 are more prone to tapping into their savings monthly for expenses (37.62 percent and 33.35 percent, respectively). Conversely, the Australian Generation Z cohort, aged 18-25, reported being more frequent savers (27.61 percent using savings for expenses monthly).
Interestingly, Australian parents appeared most likely to dip into their children's savings to buffer personal financial shortfalls (15.48 percent), surpassing their Canadian (12.54 percent) and American (11.82 percent) counterparts.
Amid these revealing findings, the broader narrative underscores the necessity for prudent and informed financial management in navigating today's challenging economic landscape.
Published:Tuesday, 25th Jun 2024
Source: Paige Estritori
Share this news item:
| Inflation's Tug of War: Implications for Rate Hikes in August 29 Jun 2024: Paige Estritori With inflation persistently on the rise, Australian homeowners brace for potential interest rate hikes as early as August. New data from the Australian Bureau of Statistics indicates that inflation remained at a worrisome 4% annually by May 2024, causing increasing concern among economists and the general public alike. - read more |
| Suncorp's Strategic Pivot: Into Insurer-Only Focus 29 Jun 2024: Paige Estritori Suncorp is preparing for a major strategic shift following the approval of its banking business sale to ANZ by Federal Treasurer Jim Chalmers. This $4.9 billion deal marks Suncorp’s exit from banking and enables it to concentrate solely on its insurance pursuits. - read more |
| Australia Gears Up to Tackle Tough Inflation Terrain 28 Jun 2024: Paige Estritori The path to bringing Australian inflation to the desired level is proving to be a challenging feat, according to Treasurer Jim Chalmers. - read more |
| ASX Slides as Inflation Jitters Persist 28 Jun 2024: Paige Estritori The Australian stock market experienced a minor hiccup on Thursday, reflecting investor jitters following this week’s surprising consumer price index (CPI) report. - read more |
| Westpac Criticized for Inadequate Customer Support Post-Branch Closure 27 Jun 2024: Paige Estritori The Banking Code Compliance Committee (BCCC) has recently highlighted significant shortcomings in Westpac's handling of its regional branch closure in Tennant Creek, citing serious non-compliance with the 2019 Banking Code of Practice. - read more |
| Australia's Energy Costs Set to Surge: A New Look at AEMO's Roadmap 27 Jun 2024: Paige Estritori Australia is on the cusp of facing some of the world's highest energy prices as detailed in the latest roadmap from the Australian Energy Market Operator (AEMO). This plan, designed to facilitate the country's energy transition, reveals significant challenges and potential pitfalls ahead. - read more |
| ASIC Enforces Notification Rules for Advisers Using Experience Pathway 27 Jun 2024: Paige Estritori The Australian Securities and Investments Commission (ASIC) has reiterated the importance for Australian Financial Services Licensees (AFSLs) to comply with new notification requirements regarding the experience pathway for financial advisers. - read more |
| Government Reforms Spike Financial Advice Costs 27 Jun 2024: Paige Estritori As the government remains slow on regulatory reforms, the financial advice sector is bracing itself for yet another cost hike, contrary to the administration's promises of reducing expenses. According to the Financial Advice Association of Australia (FAAA), a combination of factors such as new regulatory cost recoveries, the end of Reduced Input Tax Credit (RITC) for super advice, and delayed legislative actions are to blame. - read more |
| Consumer Confidence Remains Low Amid Inflation Worries 26 Jun 2024: Paige Estritori Despite a modest uplift in June, Australian consumer confidence remains historically low as fears persist about inflation potentially driving the Reserve Bank to increase interest rates further. - read more |
| Rising Costs Challenge Australian Savings: New Survey Insights 25 Jun 2024: Paige Estritori The ongoing cost of living crisis is increasingly squeezing the wallets of Australians, with a fresh survey from Compare the Market offering new insights into just how precarious personal finances are for many. - read more |
| Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
| Understanding Soft Credit Checks: Safeguard Your Score During Loan Comparison When embarking on the journey to secure financing, particularly for significant purchases such as a car, your credit score takes center stage in the eyes of lenders. A credit score is a numerical representation of your creditworthiness, derived from your financial history and behaviors. It wields substantial influence on your ability to acquire loans with favorable terms. - read more
|
| How to Use Loan Comparison Tools Effectively - A Guide for the Credit-Conscious When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
|
| Loan Hunting with Confidence: How to Check Options Without Credit Damage Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
|
| Budgeting Basics to Keep Your Credit Score Healthy While Seeking a Loan Understanding the nuances of financial health is a crucial component in the journey of loan acquisition. It is the bedrock on which potential borrowers build their case for credibility and reliability. Among the myriad of factors influencing your fiscal stability, credit scores stand out as a beacon indicating your creditworthiness to lenders. A robust credit score simplifies the path to securing loans, garnering favorable interest rates, and negotiating better terms. - read more
|
| Savvy Spending: Innovative Budgeting Tips for Smooth Loan Repayments Managing personal finances judiciously becomes paramount when dealing with loans and their repayments. A potential obstacle many encounter is preserving or enhancing their credit score while simultaneously undertaking the necessary financial commitments of loan repayments. Understanding how to navigate this terrain is vital to financial health. - read more
|
| Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
| Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
| Master the Art of Savvy Shopping: How Australian Consumers Prioritize Quality and Value in Today's Market As prices continue to soar and interest rates climb, Australian consumers are showing their savvy shopping skills. According to a recent survey conducted by Criteo, titled ‘The Rise of Savvy Shoppers Study’, consumers are prioritizing essential purchases such as fuel, groceries, energy bills, and rent/mortgage payments in the last six months. - read more
|
| Co-Signing Loans - Risky Business There may come a time in your life when you are asked to co-sign for a loan or credit card. If this is the case, there are several things to consider before making a final decision. Technically, you are putting yourself at risk of damaging your own credit in the event that the loan goes unpaid. - read more
|
|
|
Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
|
|
Loan Hunting with Confidence: How to Check Options Without Credit Damage Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
|
|
|
Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
|
|
How to Use Loan Comparison Tools Effectively - A Guide for the Credit-Conscious When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
|
|
|
Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
|
|
Understanding Soft Credit Checks: Safeguard Your Score During Loan Comparison When embarking on the journey to secure financing, particularly for significant purchases such as a car, your credit score takes center stage in the eyes of lenders. A credit score is a numerical representation of your creditworthiness, derived from your financial history and behaviors. It wields substantial influence on your ability to acquire loans with favorable terms. - read more
|
The physical contract agreement that a Mortgagee (lender) enters into with a Mortgagor (borrower) outlining the precice terms of a mortgage loan.
Quick Links: | Personal Loans | Car Loans | Bike Loans | Boat Loans | Truck Loans | Home Loans | Business Loans | Debt Consolidation