Saving money is a priority for half of all Australians

LOW interest rates have not put us off wanting to save with most of us increasing the amount we have squirrelled away over the past year.

YOU may think you are great at saving your cash, and you’re probably right, with most of us fitting the profile of active, sensible savers and less than 15 per cent considering themselves spenders.

Almost half of us, across a range of ages save plenty according to a new survey by online bank ING Direct.

Presented as a quiz, the survey attracted more than 70,000 recipients in its first week with people keen to learn more about their saving habits.

“People generally are becoming more engaged with their money,” says Tim Newman, head of product ING Direct. “And the younger demographic, 18-34 year-olds, have shown a significant increase in their average balances and contributions to savings.”

The average savings balance for 25-34 year olds is $8,781, up 20 per cent over the past year.

The quiz asked a series of questions related to lifestyle and spending like; whether you remember to stamp your coffee rewards card or buy without thinking, or how much you are likely to spend on a Friday night at the pub and whether you would rather watch sport at home or go to the game and splurge on tickets, drinks and food.

Super saver Nathaniel James walks to work instead of catching the bus.

The only age group that seemed to be saving less was the 44 to 55 year-olds whose average savings balance of $21,396 is down 1 per cent from 12 months ago.

This age group has a lot of spending pressures from raising kids to paying a mortgage and, at the latter end, saving for retirement.

Newman says they also are more likely to take advantage of tax effective savings strategies such as salary sacrificing into their superannuation.

Overall, despite falling interest rates, the Australian savings market has been quite resilient, he added.

Nathaniel James, 27, builds saving money into his lifestyle rather than putting a specific amount aside every pay cheque.

“In the cooler months I walk to work. I pack my lunch to save money and also because it is convenient and more nutritious (not having to leave the office),” James says, adding that he also likes to take advantage of coupons and promotional offers to save money.

He has an American Express credit card which he uses to pay for everything so he can earn Virgin Australia points. He always pays off the balances before it accrues interest and he never has to pay for flights within Australia.

His bills are set up as direct debits and whatever money is left at the end of the month is put into a savings account.

“The end goal is to save for a house deposit,” he says.