At its meeting today, the Reserve Bank of Australia (RBA) kept the official cash rate unchanged at the historic low of 0.10 per cent. With inflation low and below the central bank's target, economic recovery remains dependent on the health situation and significant fiscal and monetary support.
You would have thought that if you had a job and wanted to borrow money, that it's never been a better time to do so. This doesn't seem to be the case, as Australians have saved 36% more than they did five years ago. They are now less likely to borrow on credit, with credit card ownership dropping by 4.2% in the last five years while debit card ownership has increased 13.3% in the same period.
However, less young people get home loans, and Australians are taking longer to pay off their home loan. While paying off a home loan leads to outright ownership, which is good for financial wellbeing, paying them off later in life reflects how social and economic factors are changing as people pursue financial wellbeing.
The overall increase in Aussie financial wellbeing has been driven by improved financial behaviours, including saving more, restraining spending, and not borrowing money for everyday expenses.
You would have thought that if you had a job and wanted to borrow money, that it's never been a better time to do so. This doesn't seem to be the case, as Australians have saved 36% more than they did five years ago. They are now less likely to borrow on credit, with credit card ownership dropping by 4.2% in the last five years while debit card ownership has increased 13.3% in the same period.
However, less young people get home loans, and Australians are taking longer to pay off their home loan. While paying off a home loan leads to outright ownership, which is good for financial wellbeing, paying them off later in life reflects how social and economic factors are changing as people pursue financial wellbeing.
The overall increase in Aussie financial wellbeing has been driven by improved financial behaviours, including saving more, restraining spending, and not borrowing money for everyday expenses.
