Thanks to rising inflation rates across the country, Aussies are now making significant changes to their spending and saving practices.
According to new research by the leading consumer intelligence platform, Toluna, 94% of Australians are now concerned about inflation, and how it may be affecting their daily lives. This rapidly changing reality is a challenge for everyone. However, younger generations are being hit the hardest, now facing major questions around mortgage and funding options.
But what does this all mean, and how can we ensure a safe future for all?
Between the 14-18 July, Toluna surveyed 1005 Australians about their current inflation concerns. The research, which sought to collect real-time consumer insights, found that Australians were dramatically changing the way they spend money in order to combat rising prices. In fact, many people are putting off upgrading tech (20%) and delaying home repairs (20%), in order to save.
According to Sej Patel, Country director for Toluna in Australia and New Zealand, these findings are unsurprising.
“In this economic climate, price is the number one factor when it comes to purchasing decisions right now.”
“Our research shows that consumers are truly feeling the pinch of rising inflation. Australians are doing everything they can to cut back and financially safeguard themselves as much as possible – delaying travel, driving less, eating in, and putting off any unnecessary spending.”
And this need to spend wisely is spreading over all aspects of life. While some are choosing to cancel their entertainment subscriptions (12%), others are reducing their insurance coverage to lower fees for health insurance (10%).
Even with the world opening up after recent Covid restrictions, people are now 69% more likely to prepare meals at home to avoid the cost of eating out, and one in four have reduced the amount they spend on takeaway coffee.
Clearly, inflation rates aren’t going away, and it’s causing drastic changes in the way we think about our money.
This spike in prices is certainly affecting everyone. However, according to Toluna, young people are feeling the impact more than most.
Currently 82% of Aussies aged between 18-35 are concerned about mortgage repayments, with 18% seeking an additional income such as Uber or Doordash, and 16% selling personal items in an attempt to increase funds.
With over half of our young people currently trying to refinance, we must consider how the economic climate is damaging them, and what it means for the future.
The younger generations are putting off plans to buy a home, and working more than ever to boost their cash flow.
What comes next?
Inflation and the skyrocketing cost of everyday life is a national concern. Currently, a third of Aussies believe the cost of living will mean having less to spend at Christmas this year, leaving many to wonder what can be done.
According to Sej, this may be the new norm, one that will take adjustment in the business sector.
“With consumers cutting spending at every turn, businesses must identify ways to demonstrate value in order to retain customers.”
“Along with value for money, brands should continue to communicate what they stand for in order to continue attracting and retaining their core customers.”
It’s hard to tell what the future of spending will look like, but this survey is certainly raising questions around how Aussies choose to use their money.
To learn more about inflation in Australia, click here.