BEAT THE BUDGET BLUES
As this issue hits newsstands in June, Australian states and territories will be working through their plans to help us navigate our post-pandemic life. While we can’t predict what the new normal will look like in its entirety, we can be certain there will be short-term and long-term financial pain for millions of Australians.
The immediate economic impacts are there for all to see. Look beyond the billions of dollars in government support and already there’s a clear picture of how Aussies are faring with their finances.
Between the start of the pandemic in Australia in late January and the first week of May, at least 643,000 loans had deferred repayments, totalling about $200 billion. According to the Australian Banking Association, more than 392,000 of these were home loans, so it tells us that homeowners are feeling the pinch.
The Australian Bureau of Statistics (ABS) says a third (31%) of households reported their finances had worsened between mid-March and mid-April, while 14% reported an improvement. And compared with the ABS’s 2017-18 National Health Survey, “almost twice as many adults reported feelings associated with anxiety, such as nervousness or restlessness” during the four-week period.
But among the gloomy statistics, there are some shining lights too. A separate ABS survey says 81% of Australians believe they could raise $2000 for something important within a week.
Then there are the stats that tell us Aussies are conscious about their financial problems and are taking steps to address them before major trouble strikes.
Research from comparison service Compare the Market says about two-thirds (64%) of Australian households experiencing reduced income as a result of the pandemic will stop or restrict their credit card use. And more than three-quarters (77%) of this cohort will draw on their savings.
No matter which way you slice and dice the good and not-so-good figures, it’s clear the pandemic will force us rethink our finances and in many ways it will change the way we manage our household and business budgets.
In March we gave
