SYDNEY, Australia–Three in four Australians today (74.4%) say they regularly maintain a budget, compared to just 59% of Australians back in 2005, according to new research by Gateway Credit Union.
The research found overall that Australians are becoming more savvy with their savings, and comes just in time for World Savings Day today.
Of those who don't maintain a regular budget, 60% say it's because they already have a good idea of what they can afford so don't feel they need to rely on a budget, Gateway Credit Union reported.
Only 13% of Australians who don't have a budget say the reason is because budgeting is too difficult, too time consuming or too confusing. This is a huge decrease from 2005, when almost half (45%) of Australians that didn't have a budget said it's because budgeting was too difficult, Gateway CU said.
Gateway CEO Paul Thomas said the plethora of savings tools available is making it easier for Australians to manage their money.
"Better technology and apps have a part to play in this trend,” Thomas said in a statement. “Greater access to digital tools and online information has made it easier to be more engaged and to take a hands-on approach anytime, anywhere. Not to mention in the current context that is seeing more and more households squeezed from a financial perspective, thanks to an increasing cost of living and stagnant wages, many households are forced to tighten the purse strings and become more stringent with their finances.”
Thomas said that while it's great to see so many Australians maintaining a budget, it's important that every budget has an element of savings, rather than simply controlling how much you're spending.
“That means a dedicated account that you consistently add to. Many neglect their savings by leaving it in an everyday transaction account that usually has associated monthly account fees and very low-bearing interest or no interest at all,” Thomas added.