New research commissioned by St George Bank in December had found that Aussies were a worried lot when it came to money matters and had put in plans to save more this year for an overseas trip and to buy a home.
The research found that 70 per cent of the respondents interviewed by the bank had concerns for the Australian economy (55 per cent), housing affordability (44 per cent) and household debt level (42 per cent).
Off the back of 2016’s #smashedavo gate, an inter-generational furore into Millenial’s discretionary spending, it is encouraging to see that saving money is a top priority for more than a third of respondents (34 per cent), followed by paying down debt (25 percent) and staying afloat (23 per cent).
Going on a holiday or travel was earmarked as the most popular reason to save, followed by saving for a rainy day, and finally saving to buy a home.
“Our findings show nearly half of Aussies surveyed felt unhappy with their overall financial health in 2016, and the majority of those are aged 18-24 and 45-54,” St.George General Manager for Retail Banking Ross Miller said.
“However it’s positive to see all age groups said creating a budget and sticking to it will help them achieve a better financial outcome in 2017. Once the festive season is behind you, it’s time to take a fresh look at your 2016 finances, and with a bit of planning and budgeting, 2017 could be a financially rewarding year,” Miller said.
According to the research, the majority of those aged from 18-24 and 45-64 felt the need to save between $5,000 – $10,000 to reach their financial goals this year. While those aged from 25 to 44 needed to save more than $30,000, and those 65 and over need to save between $1,000 – $5,000.
The biggest financial challenges for Australians this year were cutting back on discretionary spending (39 percent), getting personal debt under control (29 percent), maintaining a lifestyle during retirement (28%), and saving enough for a house deposit (28 per cent).
“It’s no surprise to see that Millennials are keen to get their foot on the property ladder in 2017 while maintaining a lifestyle during retirement is critical for Baby Boomers,” he said.
The survey commissioned by St. George was conducted by Pure Profile in December 2016, and surveyed a sample of 1000 respondents aged 18 and over, across Australia.