Inflation and interest rates continue to climb and it’s clear many Australians are feeling a little uneasy about their finances as that plays into a rising cost of living.
Australia's inflation rate, the annual consumer price index, increased to 6.1 per cent at the end of June, according to the Australian Bureau of Statistics, the fastest growth in more than two decades.
ANZ Research expects another 0.5 percentage point rise in interest rates in October while inflation and labour data are pointing to more rate rises in the new year.
With that outlook, new analysis from ANZ Plus shows many Australians have already started taking action with 59 per cent cutting down on non-essentials, 34 per cent putting more towards savings and 17 per cent asking for a pay rise.
Meanwhile, over the next six months, seven in 10 (69 per cent) Australians aged 18-60 would like to save more and a third would like to set clearer financial goals, the data drawn from ANZ Plus customers show.
Gen Z and millennials are keen to take steps to achieve their financial goals whether it be travel or saving for that first house. But often many don’t know where to start or who to turn to.
The ANZ Plus data show the most common saving goals for Australians are holidays (43 per cent) followed by a house (40 per cent), a rainy-day fund (38 per cent) and a car (27 per cent). Other saving goals are geared towards children (22 per cent), retirement (17 per cent) and a wedding/engagement (8 per cent).
For a nation of foodies it's unsurprising many Australians continue to overspend on eating out/takeaway food (53 per cent), followed closely by online shopping (35 per cent), streaming services (19 per cent) and socialising (19 per cent).
Men are more likely than women to be saving towards a car (32 per cent compared with 22 per cent) and retirement (23 per cent compared with 12 per cent). While women are more likely to be saving for travel (47 per cent compared with 40 per cent).
On average Australian workers aged 18-60 will put a quarter of their monthly income towards savings. However, 11 per cent of the population don’t put anything towards their savings each month.
The research also reveals Australians aged 18-60 most frequently access their banking services via digital channels with more than three quarters (77 per cent) saying they very orquite often do so via mobile banking apps. A further two in five (38 per cent) very or quite often do so via the financial institution's website.