Do you have a savings mindset for 2024? Young Aussies have an idea for you

Moneybox
Image: Moneybox, from Getty

Key takeaways in this story:

  • Aussies under 30 are saving more than $450 each month by cutting back.
  • They embracing ‘cash conscious’ trends emerging overseas and on TikTok.
  • 56% are using the money saved on discretionary spending to stash into their savings.

As 2024 gets going, you might be thinking about adopting a "savings mindset". Well, it might just be that actions speak louder than words, folks.

A new report from NAB suggests that younger Australians aren’t overthinking it - they’re cutting back on non-essential spending and redirecting that money into high interest savings or offset accounts.

More than half (56%) of Gen Z and younger Australians are stashing the money they’re saving – an average of $450 each month, NAB has found.

But what’s behind the sudden money-savvy idea?

Young would-be savers turn to social media

New consumer sentiment data from NAB Economics especially notes a TikTok trend in which Gen Z has embraced a ‘cash conscious’ attitude overseas and young Aussies are following suit.

Australians under 30 are most commonly cutting back on eating out at restaurants ($124), small treats like coffees, snacks and lunches out ($73), entertainment ($64), needless car trips ($70), food delivery services ($96) and streaming services ($30), NAB's report shows.

The money saved typically gets parked in a good savings account

Let's get loud - loud budgeting

One of the top trends is called ‘loud budgeting’, which has notably gained momentum across social media. NAB personal banking executive, Paul Riley says this approach of declining social opportunities out loud is helping young people with their saving.

“In 2024, being ‘cash conscious’ is officially cool with terms like ‘loud budgeting’ emerging overseas and on social media,” Riley said. “Rather than going out for an expensive dinner with friends, younger Australians are confidently opting to stay in and choose to put that amount into a high interest savings account or pay down debt.

“The other hot budgeting trend is ‘no or low spending months’ which involve giving up alcohol, takeaway food or shopping for clothes or beauty for the month, not booking holidays, food prepping or bringing your lunch to work or finally asking mates to repay cash you’re owed.”

There you go - who would have thought budgeting and saving could be hot trends? If you're keen to join the ranks of savvy Aussies savers everywhere why not start comparing some of the best savings accounts currently on offer below.

Compare high interest savings accounts - last updated 25 February 2024

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