Aussies advised to make use of savings accounts

Aussies have been encouraged to use savings accounts to put money aside each month rather than rely on credit to make ends meet.

Tammy May, director of MyBudget, said in a piece for the Advertiser that having an account with spare funds in is a much better "safety net" than relying on credit.

She noted that while credit cards are an "innovative financial product", they require self control on the part of those using them.

The expert said Aussies should try "budgeting correctly and regularly saving" – whether this is through term deposits or savings accounts – rather than relying on credit as a safety net.

The expert observed that the frequent flyer point schemes actually end up costing consumers more money if they have to pay interest on their purchases, an observation that may tempt Aussies to compare credit cards online to find a deal with better interest rates but no frequent flyer points.

This comes after a survey conducted by Habbo found that 54 per cent of teenagers in Australia use bank accounts to save money, News Limited newspapers reported.

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