YOLO spending sees 1 in 5 Australians saving nothing each week

Suncorp Bank's annual Spending and Savings Report has revealed that Aussies’ spending habits are growing worse for wear since COVID-19, with thousands of young home-seekers opting for impulse purchases over slow and steady savings schemes.

The age-old stereotype that millennials spend their money on trivial purchases like avocado on toast now has some data behind it, with Suncorp Bank’s annual Spending and Savings Report uncovering that 1 in 5 Australians are saving nothing each week.

The Report discovered that over the past year, some Australians have fallen victim to the You Only Live Once (YOLO) style spending habit, potentially influenced by the surging price of property and unpredictable COVID-19 lockdown restrictions.

The Report finds that while the average person saves $377 per week (or $19,604 per year), many Australians find themselves bound by their Netflix subscription and monthly internet bill, while more than half of those surveyed agreed they could probably live without food delivery services like UberEats, going to the movies or avo on toast to reach their savings goals.  

Suncorp Bank Executive General Manager Home Lending Bruce Rush says that impulse spending can be the defining habit that leads to younger people’s long-term financial dissatisfaction. 

“Australians keen to build up their savings should resist the urge to reduce stress with a quick online purchase or by putting their card down on the bar tab if that’s something they don’t usually budget for,” he says. 

However, some Australians are proving to their peers that a few sacrifices can lead to big payoffs. Recently married couple, Emily (Primary School Teacher, 29 years old) and Jack Fitzgerald (Financial Accountant, 31 years old) purchased their first home in Westlake, Queensland after renting together for two years.

“We spent one year working as English teachers in Vietnam which taught us pretty quickly how to go without some of the luxuries in life so we could travel and afford to live,” Ms. Fitzgerald said.

Mr. Rush says that while having a savings goal in mind can be daunting at first, Aussies need to be reminded that sticking to a steady budget will help make the long-term goal more achievable.

“Whatever your savings goal is, our research shows that having a stable spending plan will make you feel more in control and more capable of reaching your goals.” Mr Rush said.

“Homeowners who are successful in getting on the property market generally have built up a five per cent deposit with strong and sustained savings habits, but of course the closer they can get to a 20 per cent deposit, the less Lenders Mortgage Insurance (LMI) they will need to pay."