Research from UBank reveals three in four Australians are now savings focused with the most common sacrifice being dining out, but over 40% also cut back on coffee, streaming subscriptions, gym memberships and use of ride-sharing apps.
The research, compiled by YouGov Galaxy on behalf of UBank, found 35% had also cut back on private health insurance, with 29% cutting back on other insurance products including home, content or car; this increased to 44% for 25-34 year olds.
With recession fears, low interest rates and would-be first home buyers seeing hopes from falling property prices, there was a clear focus for saving rather than spending.
Many Australians weren’t confident about saving for major items with 25% saying their spending made them feel like they were unable to own a home, which increased to 40% for 18-24 year olds.
When it came to using savings, 77% said it caused them anxiety, which underscored the importance of preventive budgeting and saving.
Lee Hatton, UBank chief executive, said the research showed millennials were getting the wrong reputation for how they handle their finances.
“These results show something that we’ve known for a long time – that this age group certainly has big goals in their sights and they’re willing to make tough choices to get ahead,” Hatton said.
Hatton said UBank’s in-app tool Free2Spend helped with budgeting by planning for expenses and savings goals.
“Since launching, UBank customers using Free2Spend have saved $109 million against a combined goal value of $490 million, the average goal is $40,000 per person,” Hatton said.