The simple budgeting trick saving Gen Z thousands every year
Young Aussies are stashing away thousands every year by using a simple budgeting hack.
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Young Australians are saving thousands of dollars each year by using a simple budgeting trick.
A trend referred to as “loud budgeting” has emerged among Australians under 30 in the midst of the cost-of-living crisis.
Loud budgeting is a term used to describe setting spending boundaries, being loud and proud about savings goals, and unapologetically prioritising your finances.
Personal banking executive at NAB Paul Riley said younger Australians were saving about $450 per month and the trend was gaining momentum overseas and on social media.
“In 2024, being cash conscious is officially cool, with terms like ‘loud budgeting’ emerging overseas and on social media,” Mr Riley said.
“Rather than going out for an expensive dinner with friends, younger Australians are confidently opting to stay in and choose to put that amount into a high interest savings account or pay down debt.
“The other hot budgeting trend is ‘no or low spending months’ which involve giving up alcohol, takeaway food or shopping for clothes or beauty for the month, not booking holidays, food prepping or bringing your lunch to work or finally asking mates to repay cash you’re owed,” he said.
Banks across the country have seen an increasing number of young people bulking out their savings accounts rather than dropping their money on treat items, such as coffees, eating out, entertainment or streaming services.
High interest savings accounts have proved vastly popular among Gen Z bankers – with the number of accounts opened increasing by 24 per cent in the past year.
Mr Riley said banks were great resources for helping to keep on top of spending, given most banks have free and easy tools that can automatically direct where money goes.
Maya McIntyre, 23, decided to cut back on non-essential spending and invest the extra $250 into her high-interest savings each month.
“I’m definitely making some changes to what I’m spending money on and I’ve cut back on things like streaming subscriptions, I’m eating out less and I’m choosing cheaper or free things to do with friends rather than expensive meals and pub visits,” Ms McIntyre said.
“Most of my friends are making some changes to the way we think about our finances and some of us are definitely more open to saying ‘no’ to things if we feel like we want to save money instead.”
As well as high-interest bank accounts, an increasing quantity of young Australians are breaking into the world of investment – but with a new, democratised twist.
A batch of popular micro-investing apps such as Blossom, Raiz and Spaceship have attracted scores of young customers in Australia because of their simplicity and user-friendliness.
Rather than needing a minimum investment of $20,000, fixed-income micro-investment apps allow customers to start investing with as little as $1.
Co-founder and chief executive of Blossom App Gaby Rosenberg previously told News Corp her business had “worked hard to democratise access to bonds” and there had been a growing trend of everyday investors buying into fixed income.
Originally published as The simple budgeting trick saving Gen Z thousands every year
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