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.
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
| Record Fine for Macquarie Bank in Energy Market Breach 27 Sep 2024: Paige Estritori Macquarie Bank's lapse in detecting irregular activities within the electricity futures market has led to it incurring nearly $5 million in penalties. The Australian corporate watchdog highlighted the bank’s systemic oversight issues and reiterated the potential negative effects on consumer energy bills. - read more |
| Potential Stamp Duty Reductions Amid Property Market Boom 23 Sep 2024: Paige Estritori The conversation around possible stamp duty reductions is gaining momentum as Treasurer Rita Saffioti remains open to revisiting taxation policies following a significant financial windfall for the State Government. - read more |
| Demand for Stronger Anti-Fraud Measures Rises 20 Sep 2024: Paige Estritori Victims of scams are increasingly insisting on more stringent regulations, similar to those seen in the UK, that compel banks to compensate for fraudulent losses. The call for rapid implementation of proposed laws is growing louder. - read more |
| Mortgage Crisis: 40% of Australian Homeowners Under Pressure 09 Sep 2024: Paige Estritori A recent study has uncovered that an alarming number of Australian households are grappling with mortgage burdens, as over 1.4 million families find themselves in financial distress. This amounts to more than 40% of current home loan holders, according to new data from Finder, a consumer finance comparison service. - read more |
| Contactless Revolution: The Decline of Cash Among Tradies 07 Sep 2024: Paige Estritori Australia is embracing a cashless economy, a trend that is significantly reshaping how tradespeople, or 'tradies,' handle transactions in their day-to-day operations. - read more |
| Caravan Loan Pitfalls: What to Avoid When Comparing Rates Exploring the vast and varied landscapes of Australia is a dream for many adventurers, and owning a caravan unlocks the freedom to roam the country at one's leisure. Caravaning is more than just a mode of travel; it's a lifestyle and a hobby embraced by those who seek the thrill of the open road and the serenity of nature. Given the significance of this investment, understanding the financial aspects becomes paramount. - read more
|
| Looking to Buy a Caravan in Australia? 5 Steps to get you on your way. Caravanning has been an enjoyable and cost-effective way for Australians to experience the country since the 1950s. It's a great option for anyone who wants to explore all that this beautiful continent has to offer without breaking the bank on accommodation. Offering freedom, independence, and access to a vast array of activities, caravanning brings a unique and memorable experience that can't be beaten. - read more
|
| A Comprehensive Guide to Caravan Loans and Finance in Australia A caravan loan is a secured loan that uses the caravan as collateral. The loan is available for both new and used caravans and can be used for a variety of purposes including holidays, weekend getaways, and even permanent living. If you’re thinking of taking out a caravan loan, read on for a comprehensive guide to caravan loans and finance in Australia. - read more
|
| Essential Considerations for Managing Your Caravan Finance Effectively Welcome to your first step towards financial liberation in the world of caravanning! Managing your caravan finance effectively is more than just making regular payments; it's a path to freedom on wheels. Understanding the nuances of caravan finance can unlock the door to early repayment and savings in interest, benefiting you in the long run. - read more
|
| Mistakes to Avoid When Budgeting for a Caravan in Australia Caravanning in Australia is not just a mode of travel, but a lifestyle choice embraced by many. The sense of freedom, adventure, and the possibility to explore the country's vast and varied landscapes have significantly contributed to its popularity. From retirees seeking to enjoy their golden years to young families looking to make cherished memories, caravanning has a wide appeal across the Australian demographic spectrum. - read more
|
|
Caravan Financing 101: Understanding Your Options Australia's sweeping landscapes and vibrant coastlines ignite a sense of adventure among many. It's no wonder caravanning has become a favoured way to explore the beauty of this nation. But before the journey begins, understanding the financial aspects of caravan ownership is essential. - read more
|
|
|
Essential Considerations for Managing Your Caravan Finance Effectively Welcome to your first step towards financial liberation in the world of caravanning! Managing your caravan finance effectively is more than just making regular payments; it's a path to freedom on wheels. Understanding the nuances of caravan finance can unlock the door to early repayment and savings in interest, benefiting you in the long run. - read more
|
|
How to Get the Best Deal on Caravan Finance – Insider Tips and Tricks Embarking on the search for the ideal caravan finance deal can be as exciting as it is daunting. For many Australians, a caravan represents not just a significant financial investment but also the key to unlocking endless adventures on the open road. However, securing the right finance package is crucial to turning those dreams into reality without overburdening one's financial future. - read more
|
|
5 Ways Caravan Finance Can Help You Realise Your Dreams of Aussie Holiday-making For many Australians, the idea of hitting the open road and taking to the great outdoors is a long-held dream... But for many, the dream of owning a caravan and taking to the road for a series of holidays each year remains just that – a dream. The high cost of buying a caravan outright often puts people off but there is a solution; Caravan finance can help make your caravan dreams a reality. - read more
|
|
|
Looking to Buy a Caravan in Australia? 5 Steps to get you on your way. Caravanning has been an enjoyable and cost-effective way for Australians to experience the country since the 1950s. It's a great option for anyone who wants to explore all that this beautiful continent has to offer without breaking the bank on accommodation. Offering freedom, independence, and access to a vast array of activities, caravanning brings a unique and memorable experience that can't be beaten. - read more
|