Aussies think they're good savers – but here's the truth

Are you a saver or a spender? (Source: Getty)

The Australian government and the Reserve Bank of Australia are desperate for Aussies to spend money – but it turns out we’re a nation of savers.

According to new research from accounting software platform Xero, most (70 per cent) Aussies identify as ‘savers’, with 30 per cent admitting they’re spenders.

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In fact, Aussies want to be better with their money: more than half think they should save more though it would mean giving up luxuries, and 45 per cent plan to be better with saving but it doesn’t happen.

Xero’s research also showed how frequently you’re paid affects your ability to save: workers paid monthly were more likely to save, while those paid weekly were more likely to spend.

City-dwellers are better savers than those living in rural areas.

According to Xero’s study of 1,000 respondents, here’s what savers and spenders look like:

Here are the characteristics of savers:

• More likely to budget and keep track of expenses and spending habits (87 percent);

• Key financial goals are on financial management such as retirement, having an emergency fund and paying off mortgages;

• Feel worried if they don’t have enough savings (95 percent);

• More likely to be married with no children and live in metro areas; and

• More likely to be paid monthly.

Here are the characteristics of spenders:

• Unwilling to give up luxuries that come with saving (77 percent);

• Believe lifestyle is more important than planning for the future (56 percent);

• More likely to use their income to pay off debts like credit card bills (30 percent);

• More likely to have children under the age of 18 and live in regional areas; and

• More likely to be paid weekly.

‘Payphoria’: Payday making Aussies trigger-happy

There’s one day of the week, fortnight or month where you’ll catch Aussies spending more than they normally do: and that’s payday.

Half of Aussies count down the days until payday, and nearly three in five (58 per cent) celebrate the occasion when the day arrives, with one in three Aussies spending more on payday than they normally would.

However, they’re making sacrifices in the days leading up to it: nearly half cut back on coffee and eating out or delay paying household bills (34 per cent) before payday hits.

“Australians are tightening the purse strings ahead of payday, cutting back on life’s simple pleasures like the morning coffee or eating out, said Xero small business advocate Angus Capel.

“It’s not surprising that when payday does come around, Aussies are experiencing rushes of ‘payphoria’ and are wanting to reward their hard work by spending up.”

However, for some Aussies, payday comes with a sense of anxiety: more than 3 in 5 have financial difficulties before their income lands in their bank accounts, with one in five Aussies turning to Afterpay, payday loans, credit cards or overdrafts, and 12 per cent asking friends or family to help out.

Capel said it was important that businesses get payday right for employees.

“Mapping out Australia’s payday trends has shown that people have a huge emotional and psychological response to their earnings,” he said.

“In any discussion of payday, the starting point has to be for employees to be paid on time and accurately, and with the correct benefits.”

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