Savvy householders trimming budgets
Pre-election national economy talk is adding to the growing level of pessimism surrounding household finances and savings, research suggests.
A survey from life insurer TAL showed 28 per cent of Australians were not confident about the state of their finances, based solely on their knowledge of the national economy.
Only a quarter of surveyed householders said they felt optimistic, given the economy's performance.
As a consequence, the bulk of surveyed Australians said they had reined in their budgets, with 32 per cent reducing their spending on groceries and 21 per cent setting a strict grocery budget.
More than half (51 per cent) said they had cut back on incidentals and luxuries.
TAL group CEO Jim Minto said the changes suggest a growing level of awareness about the need to make realistic cuts.
"Financial security concerns are actually resulting in people being more engaged with their financials needs, which is a habit we hope will stick," he said.
The rising cost of living was the primary concern for most surveyed Australians (50 per cent), followed by the ability to accrue savings (39 per cent) and pay household bills (36 per cent).
"This does make for worrying news but the fact that so many people have taken stock of their financial situation over the last two years will no doubt mean they are better prepared to face the next 12 months," Minto said.
The research was released to coincide with the Moneysmart Week, which was launched by the Australian Securities and Investments Commission to encourage Australians to boost their financial literacy.
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