Budgeting Tools Transform Savings for Australians
Australians are being urged to explore their bank’s budgeting tools, which have proven transformative for many individuals looking to save money. A notable example is 21-year-old Sydney university student, Evie Coulter, who successfully saved $4,000 within just four months through her bank’s financial management app.
Coulter, who banks with Commonwealth Bank (CBA), discovered the goal-setting feature in the app when preparing for a seven-week holiday in Italy. She expressed to Yahoo Finance that without the tool, reaching such a savings target would have been implausible.
“I’ve never been good at saving,” admitted Coulter, emphasising the struggles she faced balancing work and study with financial management. Historically, she would attempt to save but often found herself spending money on everyday expenses without a clear understanding of her cash flow.
After a friend recommended the budgeting tool, Coulter created a savings goal, automatically transferring between $450 and $500 to her designated European savings account every fortnight. The convenience of automated transfers and reminders ensured that her savings remained on track without requiring constant attention. She likened this feature to having a personal financial assistant, lending her a sense of accountability.
Thanks to this functionality, Coulter was able to accumulate her holiday savings effortlessly. “It was seamless and easy, something I just didn’t have the willpower to do before,” she remarked.
CBA is not alone in offering innovative savings tools; other major banks such as Westpac, ANZ, and NAB also provide features that categorise spending—covering areas such as groceries and dining—helping users identify potential overspending. Such categorisation can assist Australians in becoming more financially savvy.
Banks are also incorporating features that display upcoming bills, allowing users to manage their expenses effectively, alongside a ’roundup’ function. This feature rounds up debit and credit card transactions to the nearest dollar, transferring the spare change directly into savings accounts.
Alison Banney, a money expert at Finder, has noted that these tools have become particularly crucial amidst the ongoing cost-of-living crisis. “They not only predict future bills but also identify extra savings opportunities, simplifying the savings process,” she explained.
In recent trends, banks have reported that Gen Z customers are utilising budgeting tools more than any other demographic group, with CBA noting a 65% increase compared to non-users. This cohort is increasingly drawn to features like Cash Flow, which provides insights into daily expenditures.
CBA has reported that engagement with budgeting tools has surged, with many customers checking the app multiple times a day. “Younger customers are showing increased saving patterns, proving that these tools are beneficial,” said Monica Wegner, CBA’s Everyday Banking lead. To date, three million customers interact with these financial management features each month.
This growing trend highlights a collective appetite for budgeting solutions among Australians, resulting in banks adapting their services to meet these needs. As financial literacy becomes more integral to modern life, leveraging available tools can empower individuals to manage their finances better and improve savings habits.
For those whose banks lack advanced saving tools, establishing regular automated transfers via internet banking is still a viable option. Additionally, many customers employ third-party applications that consolidate multiple accounts—including banking and credit cards—for a comprehensive view of their finances, reinforcing the push towards financial awareness and accountability.
As Australians navigate through economical challenges, engaging with banking apps and utilising these budgeting features can set the foundation for a more secure financial future. For many, like Evie Coulter, these tools have proven invaluable in achieving financial goals and fostering better spending habits.
