Declining home ownership rates could be result of Aussie money mindset: poll
High prices are often blamed for decreasing home ownership rates but new research suggests many Aussies are sabotaging their hopes of climbing the property ladders with their actions.
Aussies’ increasingly poor spending and saving habits may be ruining their chances of saving up the deposits required for homeownership.
New polling showed nearly one in 10 Aussies weren’t even bothering to save money each week because they believed they would be earning more money in the future.
These Aussies said they had “no desire to save”.
Close to two in five Aussies also admitted they were “spenders” who believe in retail therapy and splurge on impulse buys.
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Another third of Aussies polled in a Finder.com.au survey of more than 1000 adults across the country revealed they aimed to squirrel away a little money each month but were prone to spending instead.
Only about one in five surveyed described themselves as extremely frugal and had the mindset “you can never be too prepared”.
Finder personal finance expert Kate Browne said people’s financial position tended to correlate with their money mindset.
“These underlying beliefs about how we manage money shape the actions we take and eventually the financial results we get,” Ms Browne said.
“Aussies should consider how they handle their money and if it’s sabotaging them – consider changing some of those habits.”
Ms Browne said those habits around money often formed early in life. “At some point in your life, you may have experienced an event which now controls your mindset concerning your finances,” she said. “That mindset can mean you’re afraid to spend money or you spend it all the minute it hits your bank account.”
Attitudes to money and saving were often influenced by generation. Baby Boomers were more inclined to save while fewer Millennials tended to be “savers”.
Fixing bad habits often meant gaining an understanding of what your approach to money has been, Ms Browne said.
“Becoming aware of your money habits is an important first step to reaching your financial goals … the golden goose is only as good as long as she lays. In other words, without any savings, if you have to stop work, your money also dries up.”
Additional research from Finder revealed more than half the adult population don’t budget their money.
“Just like marriages and friendships require work – so does our relationship with money,” Ms Browne said.
“Identify any negative money beliefs so that you can shape your financial life in a positive way.
“The New year is a great time to look at your money mindset. What feelings do you have around the state of your spending? Are you sabotaging yourself?”
Originally published as Declining home ownership rates could be result of Aussie money mindset: poll