No love lost: Aussies prioritise finances over romance

author-avatar By on January 21, 2021
No love lost: Aussies prioritise finances over romance

Financial troubles from COVID has made Australians more focused on achieving their money goals in 2021 than on chasing romantic pursuits.

A new survey commissioned by Westpac has found that financial goals outrank relationship goals in 2021, with more than half (52%) focused on building their savings and one in three (30%) wanting to increase their investment portfolio.

The survey of more than 2,000 Australians found that those who are focused on building their savings have a goal of setting aside $22,536 to put towards travel (43%), purchasing property (35%), and buying a car (17%). 

The research also discovered that 15% of those surveyed are saving up for their first home and are aiming to save $27,000 this year to put towards their deposit.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

Westpac’s Head of Savings and Investments Kathryn Carpenter said the COVID-19 pandemic has brought about a renewed focus on financial goals.

“Everyone’s excited to leave 2020 and its challenges behind, and as we face into the new year, we’re seeing many Australians determined to start off on the right foot and get on top of their finances," Ms Carpenter said.

According to Westpac, nearly two-thirds (62%) of Australians accessed some form of financial support during COVID.

“This builds on the shift we saw from our own customers during the pandemic towards building positive savings habits, with use of savings goals increasing from the year prior where saving for a rainy day ranked as one of the most common aspirations.”

The bank also found that younger Australians are driving the trend of being more focused on finances.

More than half (60%) of Gen Z are considering saving for a first home, followed by future travel (41%), and paying for their education (36%) being more important than tying the knot (28%) or starting a family (22%).

Of course, with the oldest Gen Zers turning 24 this year, getting married and having kids isn't likely to be high on the agenda yet for that generation anyway.

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.


Photo by Pixabay via Pexels

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Emma Duffy joined Savings.com.au as a Finance Journalist in 2019 after spending a year as the editor of The Real Estate Conversation. She's passionate about empowering people to make smart financial decisions and improve the financial literacy of Australians by translating complex finance topics into understandable, relatable content.

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