Those rainy day savers now suffering from drought
SAVING for a rainy day was once the primary objective of most Australians
Nowadays high household debt has...to use another Aussie term...clobbered that completely.
Evidence taken from a focus group of 1000 adults assembled by comparethemarket.com.au found one in three households don't save for unexpected loss of income yet one in four fear redundancy
Of those who did put money away 44 per cent only save up to $200 a month while older generations are less likely to put money away each month with 49 per cent of over-55's not saving at all.
This compares to 27 per cent of 18-24's and 32 per cent of 25-54's who lack a cunning kick (and may not know exactly what a cunning kick is).
According to the Australian Bureau of Statistics (ABS) the average household debt in Australia increased by 91 per cent between 2003 and 2016.
Finance expert Abigail Koch said it is advisable to have at least three months wage saved up as an emergency fund.
"Results show that Aussies are not saving for the unexpected,” she said.
"This is particularly worrying for Gen X and Gen Y, the age groups generally making big financial decisions such as buying houses and growing their families.”