Australians are spending $31 billion annually in savings, as short-term thinking, poor planning and impulse spending habits threaten long-term financial security. People have lots of good intent around savings but then just get bored and reach for the quick fix.
According to new research from Australian digital bank UBank, two million Australians have less than $1,000 in savings and 35 per cent do not have a dedicated savings account. And, 61 per cent of people are living without a dedicated savings plan and 46 per cent without a weekly budget. In addition, more than half of Australians (57 per cent) are dipping into their savings regularly for ad-hoc special purchases and bills, amounting to $2.6 billion nationally drawn from bank balances each month. For one in three surveyed (35 per cent), all of their money is spent by pay-day. The flow-on effect is a cycle of debt for as many as one in four (27 per cent) who claim to have ‘a lot’ of debt, including 8 per cent who are not in control of their debt at all, and admit it’s now impacting their well being.
The bank came up with a lot of advice to help people be better savers, much of which is manifested in Chore Scout
- Visualise your saving goals. By simply visualizing your saving goals and viewing them regularly, you can help train your brain to achieving that end goal. Clearly that’s a Chore Scout Tick!
- Make saving a habit. Most people don’t get joy in moving money into their savings account and fall into traps of over-spending. So the tricks are to make it more fun and to make it a regular habit. Research has shown that it takes the average person 66 days to turn a new behaviour into a habit. By gamifying the experience and helping parents set weekly allowances, Chore Scout helps makes savings fun and a habit
- Cash is king We are using physical cash less and less and certainly our kids are. This can lead to difficulty understanding the value of money. By creating real coins we help overcome this visualization issue
- Write down what you’re spending and share with a family member or friend. We’re all over this one like white on rice. Goals are created that mum and dad can see and over time the extended family. Everyone in on the act for leverage and support
For more information from the Ubank research visit their website