Sydney, June 18: A new report has revealed that millions of Australians are teetering on the edge of financial crisis, with nearly half the population holding less than $1,000 in savings.
Finder’s latest Consumer Sentiment Tracker, based on a survey of 1,310 respondents, found that 43 per cent of Australians — equivalent to 9.2 million people — have less than $1,000 in their bank accounts. Alarmingly, almost one in five (18 per cent) say they have no savings at all.
For those with under $1,000 in savings, the average bank balance is just $215 — barely enough to cover groceries, let alone emergency expenses like a car repair or medical bill.
Personal finance expert at Finder, Sarah Megginson, says the data highlights the growing financial pressure facing households across the country.
“The nation’s savings crisis has hit a breaking point, and it’s pushing millions to the edge of financial ruin,” she said.
“For many, even a cracked windscreen or an emergency dentist visit would be enough to cause serious financial stress.”
The survey also shows that more than half of Australians (52 per cent) are living month to month, without any meaningful financial buffer. Meanwhile, on the opposite end of the spectrum, the average Australian reports holding around $43,007 in savings — pointing to a widening gap between those who are financially secure and those just getting by.
Those in lower income brackets are particularly vulnerable. Among households earning less than $50,000 annually, 56 per cent have less than $1,000 saved, and 25 per cent have nothing at all.
In contrast, only seven per cent of those earning over $100,000 report having no savings.
Megginson warns that lower savings increase the risk of falling into debt, especially when people turn to credit cards or buy-now-pay-later services to cover everyday costs.
“While these tools can help in the short term, using them regularly for basics can lead to spiralling debt.”
She advises Australians to aim for an emergency fund equivalent to at least three months’ living expenses.
“Small changes can make a big difference,” Megginson added.
“Switching to a cheaper car insurance policy could save you $50 a month — that’s $600 a year you could put towards savings. And putting even $150 a month into a high-interest savings account can grow to over $5,800 in three years.”
Four Simple Tips to Improve Your Finances:
- Create and stick to a budget – Track your income and expenses to get control over your spending and prioritise savings.
- Cut back on unnecessary spending – Daily coffee or frequent takeout adds up. Be conscious of what’s a “want” vs a “need.”
- Review your subscriptions – Cancel unused services like gym memberships or streaming apps you rarely use.
- Shop around for better deals – Whether it’s home insurance, mobile plans, or energy bills, better deals are often just a comparison away.
As cost-of-living pressures intensify, Megginson says now is the time for Australians to take stock of their finances and seek out simple ways to save.
“Every dollar saved counts — and for many Aussies, it could be the difference between stability and serious stress.”
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