New NAB research has found one in two Australians do not regularly sit down to look at their finances, while a third say money is a source of conflict in their relationships.
With money a growing source of stress, NAB also found 32% do not keep track of their incomings and outgoings (among men aged 18-29 the figure is 44%), while 53% of men aged 18-29 say money is a source of stress in their relationships. For Australians with children under 18, 43% say money is source of relationship stress.
Full-time students (65%) and women aged 18-29 (62%) are the most financially stressed; 44% of men aged 18-29 say their partner manages all of their finances, and 63% of women aged 18-29 say money is a source of stress.
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The research was conducted by NAB Economics from August to September 2022, based on responses from 2,050 Australians weighted to the population.
NAB is encouraging people to sit down for at least 45 minutes one Monday each month, either individually or with their partners, to get familiar with their financial situation. The bank has launched the “Money Mondays Conversation Guide” to help people get started on these conversations, and has partnered with therapist Lissy Abrahams (pictured above left) to create the guide.
Abrahams said spending time with your money was an important and practical way to improve financial and emotional health.
“While money is one of the hardest topics to talk about, particularly when in a relationship, it is one of the most important,” Abrahams said.
“The more we understand where our money beliefs and behaviours have come from and our partner’s, the better our relationship with money and each other will be. We often don’t think twice about spending 45 minutes watching TV or scrolling on social media. Finding that time, be it on a weekend or after work and putting it in your diary is key.”
Engaged Finance mortgage broker Mathew Spiteri (pictured above centre) said it was important for clients to have an understanding of their own saving and spending habits, which allows them to make informed financial decisions.
“Whether that be planning to buy a house, paying their mortgage off faster, or planning a holiday, as brokers we generally find clients who are on top of their savings and spending habits pay off debts faster and accumulate less personal debt,” Spiteri said.
“It always amazes me when you get to know a borrower and realise that they do not completely comprehend their own financial position and rely on others to manage their financial affairs.”
Spiteri said brokers could help clients navigate this issue by assessing their personal expenditure and savings by utilising services like bankstatements.com.au which provides categorised totals of spending.
“Brokers can also encourage clients to review their direct debits (look out for subscriptions such as Foxtel, Netflix, gym, unused memberships, etc),” he said. “These lifestyle or personal choices can save a client a few hundred dollars a month to a few thousand.”
NAB executive Krissie Jones (pictured above right) said NAB’s insights revealed a need for many to find a new way to reduce the stress of managing finances.
“The research clearly shows Australians want to take more control of their money, but they often don’t know where to start,” Jones said. “'Money Mondays encourages small habits, like regularly checking your incomings and outgoings and having open and honest conversations with your partner about your money goals. These little changes can make a big difference to your finances in the long run.”
