ASIC, Financial Experts Urge Generation Y Members to Focus on Saving
Save Money (Photo credit: 401(K) 2012)
Recent research published on the MoneySmart portal, run by the Australian Securities and Investment Commission, or ASIC, indicates that Australians are currently saving more money than ever. The experts are looking at this status quo as being a direct consequence of the global financial crisis. In a post-recession world, it is only natural that everyone’s attention is focused on hoping for the best, but preparing for the worst. The poll results were issued in September, during ASIC’s Financial Literacy Awareness Week. Like numerous other ASIC initiatives, this one, too, encourages the general population to stash their cash. As such, it came as a pleasant surprise that 49 per cent of the 9,000 people polled countrywide said they save regularly—on a weekly basis no less. Another 28 per cent save if and when they have any money left over from the daily expenses, while 22 per cent don’t have anything left to spare. Only 3 per cent of the 9,000 people interviewed said they are actively struggling to repay their non-mortgage incurred debt.
The ASIC website offers strategies on how to save for various goals, be they long-term plans, such as buying a new home or car, or shorter-term goals, such as a holiday or to the end of making an expensive purchase. It provides the population with tips and tools for making saving an easier process, such as a savings goal calculator and a savings plan template. Those who already are in a position where they can afford to set some money aside, either as an emergency fund or for a particular upcoming expense, can also make use of other online resources. Bankwest offers a savings and term deposit product and service comparison tool, which can be accessed at http://www.bankwest.com.au/personal/savings-term-deposits/savings-term-deposits-overview.
Savings start with knowing what you spend each dollar on. According to the ASIC, only one in every two Australians is aware of what they’re spending their money on. The remaining half should definitely rearrange their mindset and work toward a more financially organized outlook. If you still find saving a difficult goal to achieve, take some advice from the Four Generations financial experts at news.com.au, for instance. They provide tailored solutions for the four main financially active generations in Australia: Generation Y, Generation X, the Baby Boomers, and their parents, the Retirees. For instance, Justine Davies argues that members of Generation Y (i.e. people in their twenties up to their mid-thirties) spend the vast majority of the money for which they spend eight hours a day working on things they’re not truly aware of. Such ‘silent costs’ can include banking fees, insurance premiums, transport and utility costs, and numerous others. With the increased availability of Internet banking solutions, tracking one’s expenses should now be easier to achieve than ever.
ASIC experts also continue to wage war on debt, by encouraging people to devise a working strategy against debt. According to the survey results, 65 per cent of those polled have such a plan in place, while the remaining 35 per cent have yet to attack the issue in an organized, strategized manner. With the winter holidays right around the corner and only two months away, ASIC representatives state that mid-autumn is the best time to start saving. By Christmas, they say, you will be thanking yourself for not having to go completely empty-pocketed post-holidays. According to David Chalke, social analyst, Australia’s attitudes with respect to money have reverted to those held in the 1970s—which is not necessarily a bad thing. This time, the retrograde attitude indicates the fact that we’re exercising far more precaution with our money than before 2003.
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Category: Saving Money
