The Nielsen Global Survey of Investment Attitudes is one of the world’s most useful tools for economic predictions of all sorts, from one of the top globally acknowledged analysis and ratings institutions. This year, the survey was released in early July and conducted over 18 days in February. It polled some 28,000 consumers in 56 countries all over the world. And while the experts might find it easy to make sense of the facts, they don’t always reach the consumer per se in an easy-to-grasp form. We usually receive interpretations and surmises from the aforementioned experts. However, if you want to make sense of what Nielsen has to say about the way in which the Aussies are making use of the Oz buck, read on.
As the world changes and the way in which we manage our finances shifts in the face of evolutions in technology, an increasing number of consumers are also adjusting their spending and banking habits. How so? In Australia, this means that over 70% of all inhabitants have made use of any Internet-based banking platform over the three months prior to responding to the poll. Statistics are radically different when it comes to mobile solutions, which have only ever been used by 14% of the total population. The situation is somewhat more encouraging with members of Generation Y (people aged between 21 and 29), yet altogether bleak with seniors: no more than 4% of people aged over 65 have ever used mobile banking solutions.
Credit Card Debt
Australians are very fond of their plastic, it seems, since the overall use of cash falls slightly below the world average (67% of Australian consumers use cash, compared to 80%). Meanwhile, Australia ranks somewhat above the global percentage when it comes to paying via credit (54% compared to 52%) or debit cards (49% versus 43% on a global scale). It seems Australians are always seeking for the best rates on credit cards and we found an online comparison tool while Googling info for this article, via Bankwest. Credit card debt repayment is quite a different story, however. Most people tend to repay their full bill on a monthly basis (63%), yet 24% make the minimum repayment or even less. As with most other bills, topping the reliability charts are senior citizens – 85% repay their debt in full each month, whereas only 44% of forty to forty-four year-olds do the same. Young Aussies (20-24) rank better than their elders, with 47% stating they repay their whole credit card debt each month.
Australians are not as quick to invest their money as the rest of the world, it seems, since only 21% do so, in comparison with the world average of 33%. Meanwhile, inhabitants of Australia seem to be more geared toward shareholding than the rest of the world – 70% in Oz, versus 67% in the rest of the world. We fall severely below the global average with respect to mutual trusts or funds. These are used by 52% of investors the world over, yet only 23% of Australians have thus far considered them to be worthy investments. When it comes to investments, financial advisors are not that popular Down Under, it seems. Only 16% of the Australians who choose to invest their money call on their services, while a whopping 57% prefer to be the only people in charge of how their money is invested.
To conclude, despite the lack of trust in financial advisers, Australians display rather healthy saving and spending habits. With respect to credit cards, experts have been quoted to say that the recently enforced new credit card laws will discourage over-spending and help the indebted population move toward a healthier financial lifestyle.