Women may feel less comfortable with money than men, but in reality they are more in control of their financial futures than their male counterparts. This is one of the key findings from the latest RaboDirect National Savings and Debt Barometer (NSDB).
The most recent NSDB, which RaboDirect conducts annually, polled over 2,355 financial decision makers aged between 18 and 65, with a focus on Australians’ attitudes towards debt and savings. The survey results are weighted by gender, age and location to be representative of the broader Australian community, in line with statistics published by the Australian Bureau of Statistics.
According to Renee Amor from RaboDirect, over 69% of women follow a budget, compared to only 60% of men. And this theme is reiterated when it comes to planning for the future, as 92% of women, compared with only 85% of men, believe they should be saving for retirement.
Ms Amor said that in the face of recent publicity highlighting the fact that so many Australians are seriously underfunded for retirement, both sexes should be looking at concrete ways to improve their financial outlook and making the most of their hard earned cash.
She then went on to list some simple steps to increase savings and decrease debt.
“It will be no surprise that effective budgeting comes in at step number one. A budget needn’t be complex, but knowing exactly how much you spend and what you spend it on is the first step to taking control of your finances and putting something aside in savings.
“If you feel that you are not able to tackle your finances alone, seek advice from a professional financial planner,” she said.
Ms Amor said that the next step was to pay off your most expensive debt, such as your credit card, and not to be afraid to look for a better deal from your bank.
“The NSDB found that men were more likely to switch banks, with 69% describing themselves as switchers, compared with only 63% of women, who were more likely to stick with the one bank.
“Nonetheless, it really does pay to take advantage of the best possible rates on offer for your savings, and that means using a true high interest bearing account versus an everyday transaction account, which typically pays little if any interest and charges fees for the privilege.”
Ms Amor also said that many Australians might be surprised to hear that collectively they are missing out on around $3.5 billion in lost interest every year by keeping their money in no- or low-interest bearing accounts.
While high interest bearing accounts cannot take the place of everyday transaction accounts, they can help savings grow faster. Term deposits can also be a good option, as they provide a guaranteed return as well as higher interest rates.
“In the better term deposits, there is the option of taking interest monthly, quarterly or half yearly, so locking funds away on a secure term still allows access to the interest,” she said.
Ms Amor finished by saying that even though 42% of women compared with 35% of men reported that dealing with money was stressful, following these few simple steps could reduce anxiety.
“Many Australians are already trying to do the right thing by saving. I would just like to encourage them to put their hard earned cash into true high interest bearing account or term deposits. It’s a positive step that can make a real difference.”
