If you don’t know how much you spend on household expenses and entertainment every month, you’re not alone. It appears very few Australians can tell you the exact amount, according to a new study by UBank.
A staggering 86% of the Australian population doesn’t know how much money they are spending every month. Some 82% don’t know what their mortgage rate is either.
The most common reason given as to why people don’t know their monthly expenses accurately, according to UBank, is that it’s too hard to calculate the expenditure.
It may be a relaxed approach to take about money but those Australians without an awareness of their expenses are anything but relaxed. The research found 59% of Australians admit their current financial situation causes them stress or loss of sleep and nearly half of millennials (44%) constantly worry about their financial future.
“With the latest data from the Bureau of Statistics uncovering that the cost of living in Australia rose 2% last year and is the strongest pace of growth we’ve experienced in 3.5 years, it’s never been more important to know your numbers,” says Lee Hatton, CEO of UBank.
Australians also struggle to remember other key financial numbers such as the debt on their credit card with only 22% of cardholders accurately knowing their debt.
The number of Australians who feel that they are in full control of their finances is only around one in five, according to UBank.
Budgeting and spending measures can give people peace of mind. The good news is that there are numerous financial management apps that help with budgeting and spending to record expenses and help people feel in control of their money.
The UBank research found only 28% of Australians actively use financial management/budgeting tools. Additionally, 31% say they have not used any, but think it would be a good move.
Hatton makes the point that if you know important rates such as your mortgage; you are more likely to realise that there are special deals that are more attractive and could potentially save you thousands if you switch.