Households save up less in December

Savings among Australian households fell this month, resulting in a decline in their overall financial position, a study has found.

The latest Melbourne Institute household financial conditions index, which shows the proportion of households who are saving relative to the proportion who are accumulating debts or drawing on their savings,  fell to 32.0 in December from 32.7 per cent in September.

In addition, the index, which was obtained by the AAP, showed the proportion of respondents who regarded "saving for a rainy day" as their primary motivation for saving was 46.9 per cent, down from 49.1 per cent in September.

Commenting on the findings, Melbourne Institute research fellow Edda Claus said: "Financial conditions of Australian households declined during the global financial crisis. So far, conditions do not show signs of a rebound."

Consumers seeking to improve their long-term finances could opt to compare savings accounts in search of the best returns. The conclusions of the Melbourne Institute appear somewhat at odds with other market observations such as those by the Reserve Bank which recently expressed encouragement at the "new-found restraint" seen in household consumption recently.

This article is brought to you by Mozo – Helping you compare savings accountsADNFCR-1761-ID-800310131-ADNFCR