- A new survey by Money.com.au found 44% of Aussies feel complacent towards saving, investing or earning more
- Attitude towards finances has financial advisor Helen Baker concerned more Aussies will fall behind
- Despite a lack of financial motivation, Aussies are actually spending less due to inflation and interest rates
A leading financial advisor has warned of the emergence of a concerning trend, as nearly half of Australians admit to being financially complacent.
A survey commissioned by finance platform Money.com.au found 44% of Australians say they are unmotivated to save or invest their money, or even increase their income.
Financial advisor and Money.com.au spokesperson Helen Baker says she finds it concerning to see so many Australians disinterested in building wealth.
The survey also indicated 23% of people are less motivated to invest and 21% are less motivated to save, while 11% of people feel apathetic towards earning a higher income.
“Unfortunately, the risk with complacency is that they will form a habit to not save or invest and it can be difficult to get out of this complacency.”
Helen Baker, Money.com.au spokesperson
“Individuals will also fall behind on their financial goals as a result. The longer savings and assets fail to grow, the harder it will be to catch up,” said Ms Baker.
The answer to why Australians are feeling this way may lie in the current climate, clouded by inflation and interest rate concerns.
A generational divide
The results of the survey also indicated a surprising generational trend, with younger Australians appearing to be the least interested in creating wealth.
53% of under-30s indicated a lack of motivation to save, invest and earn more.
This figure decreased with age, with 46% of 31-50 year-olds and 37% of over-50s telling Money.com.au they felt the same.
Ms Baker said it was surprising to see the lowest levels of financial motivation emerging in the nation’s youngest generation.
“[Younger individuals] risk falling behind those who are [motivated] – and who will likely have better opportunities and funds for the future, such as for their retirement.
In contrast, the return of immigration and a more competitive job market will prove challenging for those who have lost their motivation,” she said.
Inflation and interest rate concerns see spending decline
A growing attitude of financial complacency could be driven by the widely-held belief that inflation rates will not be curbed to an average 3% growth rate.
According to Money.com.au, this belief appears to transcend generational and locational barriers, with similar proportions of respondents believing inflation will not be controlled.
61% of under-30s and 58% of over-30s hold this belief, while 66% of West Australians, 63% of Queenslanders and 60% of Victorians indicated the same.
Despite a lower motivation to save money, 35% of Australians admit their spending has declined in the past year. A further 44% indicated their spending stayed about the same.
Unsurprisingly, older Australians drove the spending decline. 41% of over-50s curbed their spending, while 35% of 31-50 year-olds and 25% of under-30s did the same.
Interest rates have Aussies reluctant to put hands in pockets, with a fall in household spending in September found to coincide with rate rises.
“The RBA’s 0.25% cash rate increases in October and November have sent a clue to the population that they might not be able to control inflation – or that the inflationary period will last years,” said Ms Baker.
“Experts predict that the inflation rate will peak to 7.75% in the December quarter – but that depends on what you spend your money on.”
Helen Baker, Money.com.au spokesperson
“Groceries have increased by around 9% this year, petrol by 18%, and household energy bills are tipped to increase 20% by the end of the year. Private health insurance premiums also increased this year, by 2.7%.”
Though with Christmas right around the corner, Ms Baker expects to see spending increase over the last two months of the year before a more pronounced decline in early 2023.
