New research from UBank shows positive pandemic savings behaviours are continuing
23 April 2021, Sydney Australia – Aussies continue to embrace the healthy budgeting behaviours they adopted in the wake of financial uncertainty created by COVID-19, according to the bi-annual Know Your Numbers Index* by leading digital bank, UBank.
In July 2020, just 19% of Australians had implemented new budgeting strategies in response to the pandemic. Less than a year later, this number has risen to almost half (47%).
UBank CEO, Philippa Watson said: “If the past year has shown us anything, it’s that setting money aside for a rainy day is not enough to sustain us through long periods of economic disruption, so it’s encouraging to see Australians continuing to implement the positive savings behaviours they picked up during the pandemic well into 2021.”
According to the research, two thirds (65%) of Aussies abide by some form of a budget, including 43% of those who say they have the tools and/ or tactics to budget, and 22% who say they sometimes use their tools/ tactics to budget. A further 41% of Aussies continue to minimise spending outside of necessities.
Millennials (70%) are most likely to use budgeting tools at least sometimes, ahead of Baby Boomers (66%), Gen X (62%) and Gen Z (60%) and are also considerably more likely (56%) than Gen Z (46%), Gen X (46%) and Baby Boomers (41%) to have implemented new spending and budgeting strategies in response to how the economy is faring.
“It might sound obvious, but there is a direct link between budgeting behaviours and reaching your financial goals,” said Ms Watson.
“Many banks offer free budgeting tools, like UBank’s Free2Spend, as standard features on their savings and transaction accounts. Customers should be taking advantage of these to ensure they’re staying on track and holding themselves accountable.”
Aussies saving their pay checks
13% of Aussies are able to save half or more of their income each month, with 4% of those saving almost all of their monthly salary monthly.
13% of Gen X estimate to save around a quarter of their income each month, ahead of Baby Boomers (5%) and Gen Z (4%).
On the other hand, Gen Z (28%) are considerably more likely than either Gen X (6%) and Baby Boomers (6%) to be saving half or more of their salary each month.
Four in ten (38%) Aussies save one third or less of their monthly salary, including one in four (24%) who save either none or only a little bit of their monthly pay check, however this is an improvement from 49% in July 2020.
UBank Know Your Numbers Index data conducted and compiled by YouGov Galaxy with 1,031 Australians, 18 years and older over the period of 8-10 March 2021.
UBank’s free Free2Spend budgeting tool first asks users to set goals, whether they're saving for a wedding, investment property or holiday or even just saving in general. Users then input income and fixed expenses, with the tool then using these figures to calculate the daily Free2Spend number or 'One Number'. For example, if you earn $5,000 a month, save $1,000 a month and have monthly bills of $2,500 (like rent, utilities, mobile phone, gym etc), Free2Spend will take these into consideration to provide a unique daily spend figure for the month (or the chosen pay cycle) to be spent however you please.
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*UBank Know Your Numbers Index data conducted and compiled by YouGov Galaxy with 1,031 Australians, 18 years and older over the period of March 8-10, 2021.