When it comes to New Year's resolutions, financial security comes before vacation.
When it comes to New Year's resolutions, financial security comes before vacation.
According to a new NAB study, 26% of Australians would prioritize managing their finances in 2023 over trip plans, and 17% would prioritize it over resolutions to lose weight or spend less time on social media.
Four in ten said eating out (41%) and keeping up with the newest trends (40%) would be the first things they were willing to give up to ensure their financial security in 2023.
However, despite the rising cost of living dominating headlines, almost one in five Australians stated that managing their money wasn't a priority for them right now.
NAB is asking Australians to set aside at least 45 minutes once a month to sit down and talk about their finances with their partners or on their own. This is to get people talking about money again.
To help people get started, NAB has collaborated with renowned Australian psychologist Lissy Abrahams to develop a "Money Mondays Conversation Guide."
According to NAB Executive Everyday Banking Paul Riley, the NAB Economics research confirmed how much finance is currently on many Australians' minds.
Mr. Riley says it shouldn't be a surprise that so many people are willing to put mastering their finances ahead of keeping other traditional New Year's resolutions.
Given the current cost challenges, "many of our clients are telling us they're making changes,” Mr. Riley said
The study found that: approximately 13% of Australians had no financial goals at all; 7% were unwilling to make any current cuts in spending; fewer people in capital cities were willing to cut back on entertainment, beauty products and services, ride-sharing, and gym memberships than those in regional cities or rural and remote areas; and women were more willing to do so than men when it came to eating out.
In comparison to males, a lot more women in this age group were willing to give up purchasing a second car or making house modifications. They were also keen to cut back on eating out and on cosmetic products and services.
According to Mr. Riley, young Australians are very interested in their financial situation.
Roughly 30% of people between the ages of 18 and 29 said they would forgo travel in 2023 to improve their financial situation, while about 26% said it was more essential than spending less time on social media.
This is especially interesting because millennials and Gen Zers grew up with technology and are highly driven by experiences like travel.
In order to reach those financial objectives in 2023, they are also prepared to forgo or cut back on things they would otherwise purchase. Top on the list is eating out (46%), clothes (41%), and alcohol (40%).
Bec Shrammel, a customer of NAB, is saving for a trip to Europe in 2024 and is prepared to make sacrifices to make it happen.
Ms. Shrammel, 22, claimed that in 2022, she would work five days a week and spend a lot of money on lunch and coffee every day.
“In 2023, I'm going to stop going to get coffee every day and bring my lunch from home. I'm sure that these small changes will make a big difference in my savings and will be worth it when I go to Europe,” Shrammel said
Even though it could be challenging to know where to begin, Mr. Riley stated that scheduling a Money Monday was a good method to familiarize yourself with your financial status.
Put it on your calendar, cook a lovely meal, turn off your phone, and, on the designated day, use Lissy Abraham's Money Mondays Talk Guide to help you get through the conversation.
Mr. Riley said, “You might have a significant financial goal you're working towards or be expecting a shift in your income or expenses, so it can be beneficial to sit down and look at the year ahead”.
The study was done by NAB Economics in November and December 2022, using responses from more than 2,000 Australians that were weighted to match the population.