Australia’s financial health
Australians rely on a steady income
In order to stay afloat in the past 12 months, many Australians have had to dip into savings that would have otherwise remained untouched. Over half of Australians (57%) – if they were to stop earning an income today – would not last more than six months before running out of money. Of that proportion, 16% would run out of money after a day or so, 20% after a week or so and 22% after three months or so. Only 22% would last for more than a year on their savings alone. It is no surprise then, that the highest proportion of Australians have less than $100 in their savings account right now (22%).
Gen Z are the most reliant on a steady income, with 61% of Gen Z’s not having enough savings to last longer than a week.
Aussie’s regret not prioritizing their financial health earlier
For one in five Aussies (20%) their biggest financial regret is not prioritizing their financial health earlier in life. For Gen Z, their biggest financial regret is buying something they didn’t need (20%), a product of the FO.M.O (fear of missing out) experienced by many in this generation.
17% of Aussies do not have any financial regrets, many of whom are Baby Boomers and Builders (44% Builders, 29% Baby Boomers cf. 18% Gen X, 8% Gen Y and 4% Gen Z).
The future of cash in Australia
While COVID-19 saw the rise of cashless payment methods and online shopping, the majority of Aussies still currently have cash in their purse or wallet now (67%). Only 3% have not carried cash with them in the past 12 months.
Australians are willing to earn less in order to spend time with loved ones
Our recent COVID research has shown that over half of Australians (52%) have spent more time with their family/household as a result of COVID-19 and want to keep it in the future. This sentiment is reflected in Aussies spending attitudes, where 77% are definitely/somewhat willing to earn less in order to spend more time with loved ones/doing things they enjoy.
In fact, Aussies are more likely to spend money on experiences than physical possessions. Australians are most motivated to spend time with loved ones (63%) and on new/unique experiences (45%).
Young Aussies are also highly motivated to invest in learning and improving their skills. 40% of Gen Z, 42% of Gen Y and 30% of Gen X are motivated to spend money in this area.
Aussie’s are willing to give sacrificially to those close to them
Aussies are generous, with 81% supporting charities/not-for-profits financially in 2021. Over half of Aussies (59%) would definitely/somewhat give a large amount of money to a close friend if they needed it, while 47% would give to a charity in a way that was a real sacrifice for them.
While Gen Z are the most financially vulnerable, they are also the most likely to definitely/probably give a large amount of money to a close friend if they were in need (72% Gen Z, 64% Gen Y cf. 53% Gen X, 55% Baby Boomers and 40% Builders).