How well do Aussies cope with the financially unexpected?
A recent study we ran for NAB shows that, while most adults see themselves as good money managers, almost one in five still say they live from pay to pay. The number who have nothing left at the end of a pay period, along with the phenomenon NAB refers to as Financial Exclusion is more pronounced in regional areas, the study found.
- 70% of Australia adults consider themselves good at money management.
- If faced with an unexpected expense, 84% would dip into their savings, 50% would borrow from a bank or credit union, 45% would borrow from family or friends and 41% would use their credit card.
- The three most common unexpected expense experienced by Australia adults in the last 12 months were, dental / medical (46%), higher than expected bills (42%) and car repairs (40%).
- Almost one in five Australian adults (19%) are living pay to pay and rarely or never have any money left at the end of their pay cycle.
- When they did¬†not¬†have excess money at the end of their pay cycle, but needed access to some, almost three quarters (74%) reached into their savings, 31% borrowed from friends or family, 16% sold something and a further 16% applied for credit.
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