Savings review: Why 2024 was the year of thoughtful spending

Amid higher costs, Aussies have been trying to save money in 2024. But economic uncertainty and the sluggish fight against inflation hasn’t helped. 

Throughout this period, savers have had to become more strategic in their financial decisions, balancing careful spending with smarter saving habits. We’ve seen a lot written about this, including that many Australians have trimmed down travel-related costs in 2024.

It’s been a more frugal era for sure, and a few key numbers can help illustrate the impulse to save. 

Better decisions helping consumer (and saver) confidence?

One way to see how people are handling their money is with consumer confidence figures. In December, confidence reached its highest level since May 2022, with the ANZ-Roy Morgan Consumer Confidence Index climbing 2.7 points to 88.4. 

This improvement might reflect sharper financial management rather than pure optimism, though. For instance, recent Black Friday stats from NAB reveal that while overall spending increased by 4% compared to 2023, transaction volumes actually dropped by 4%.

Fewer purchases can typically mean more deliberate shopping.

"Australians are spending more thoughtfully and choosing quality over quantity," says NAB executive business metro, Julie Rynski, noting that consumers showed interest in high-value items.

Essential items are a priority for many

The emerging trend of making more intentional and well-considered financial decisions is particularly noticeable in the way Aussies are making ‘major purchases’. 

For example, ANZ-Roy Morgan data shows nearly a third of Australians (31%) currently view it as a good time to buy major household items, the highest level since April 2022.

This is one purchasing category that usually demands research and greater consideration, and typically doesn’t lend itself to ‘impulse buying’. 

Getting the most from your savings accounts  

A focus on thoughtful spending can also typically see an improvement in savings habits. More money saved and put in the bank is great, but switching to a higher savings rate is even better. 

Research from Mozo’s ‘SOS’ Savings Report for 2024 shows that those who switched in the past 12 months are enjoying an average savings rate of 4.53% p.a., significantly higher than the 3.71% p.a. earned by non-switchers.

Also of note, our report shows that 69% of Australians have never switched savings accounts. These savers could potentially miss out on better returns during a relatively high interest rate environment.

Every little bit helps, especially in more challenging economic times. 

Don't forget to compare

To see what leading providers are offering, head over to our high interest savings account page (or start with the below list).

After all, simple switch might help you make the most of your more thoughtful spending!