Recent findings highlight a significant financial vulnerability among Australians, with millions facing stress due to unexpected expenses. The Consumer Sentiment Tracker by comparison site Finder reveals that 43% of surveyed individuals, totalling approximately 9.2 million, possess less than $1,000 in savings. Within this group, the average bank balance sits at a mere $215, a slight increase from the $210 reported in 2024.
Alarmingly, about 18% of respondents, translating to 4.3 million Australians, have no savings to rely on. This financial insecurity is manifesting in widespread stress; around three-quarters of those surveyed expressed concern over their financial situations, and more than half admitted to living paycheck to paycheck.
Contrasting the precarious savings situation, the average Australian reportedly has $43,007 in the bank. Finder’s money expert, Richard Whitten, advocates for individuals to aim for saving three months’ worth of income. He suggests examining everyday expenses for potential savings, noting that a modest reduction in monthly bills, such as health insurance, could accumulate to significant savings over time. For instance, saving $50 monthly could result in an additional $600 by the year’s end.
Whitten also encourages seeking ways to boost earnings and points out the advantages of high-interest savings accounts. Such accounts can generate better returns than standard transaction accounts. He illustrates that committing to a recurring investment of $150 each month in a high-interest savings account with a 5% interest rate could grow to $5,813 in three years.
Overall, the findings prompt a call for Australians to bolster their financial resilience by establishing emergency funds and exploring options to enhance their savings strategies.