14 Aug, 2012
Australian Household Budget Tracker Helps Monitor Spending
Canberra, 13 August 2012 – ASIC’s 2012 spending clock estimates the average Australian household will spend $69,166 on general living costs in 2012. This amounts to $1,290 per week.[1] Yet only 54% of people know exactly what their money is spent on. [2]
This information supports the release of ASIC’s new suite of tools to help Australians track where their money goes. ASIC’s Senior Executive Leader, Financial Literacy Robert Drake says, ‘We suspect many households end up misdirecting thousands of dollars each year because they are not keeping track of where their money goes. As the spending clock
shows, expenses add up quickly.’
‘Our research shows many people fall into the habit of living pay to pay. That’s why we have developed a new suite of tools to help Australians take control of where their money goes week to week, so they can direct it to where it matters most.’
The tools are:
- a free smartphone app called ‘TrackMySpend’ available on iTunes
- a Managing Your Money booklet
- an online Budget Planner on ASIC’s MoneySmart website .
The TrackMySpend app can be used to record expenses on the go. The app helps the user set a realistic spending limit and stick to it. Expenses are entered by category to ensure the user’s money goes towards the things that are important.
One user said, ‘I like the ability to view my expenses as needs or wants. I could see straight away where to look for opportunities to save.’ [3]
According to The Telstra Smartphone Index [4] ‘People aged between18-44 are the highest proportion of smartphone users in Australia. More than 70% of 25-29 year olds own a smartphone, followed by 69% of 21-24 year olds and 66% of 30-40 year olds.
Mr Drake says, ‘If 85% of people with smartphones use their phone on the go,[5] then we have a chance to reach these young people while they are on the move, so no expenses can slip through the cracks. The app can also help these younger demographics stick within the budget they have set for themselves, so they can save for a holiday or get rid of debt.’
ASIC’s top tips on how to take control of your money include:
The Managing Your Money booklet is a step-by-step guide to budgeting, with a lift out budget template for those who prefer pen and paper. The booklet and other publications can be ordered for free on the MoneySmart website The Budget Planner on MoneySmart’s website |
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Background
ASIC’s 2012 Spending Clock estimates how much Australian households have spent on general living costs since the 1 January 2012 by applying RBA inflation figures to ABS Household Expenditure data from 2009-2010.
To calculate the total Australian household spend, the number of dwellings in Australia was taken from the 2011 Census and multiplied with the average household spend.
General living costs include the following ABS categories: Current housing costs, domestic fuel and power, food and non-alcoholic beverages, alcoholic beverages, tobacco products, clothing and footwear, household furnishings and equipment, household services and operation, medical care and health expenses, transport, recreation, personal care, miscellaneous goods and services.
Notes
- The spending clock is based on ABS Household Expenditure data.
Back to text - Based on data from 1,400 anonymous participants who used the Money Health Check tool. Participants responded to the question, ‘Do you know what your money is spent on?’. Back to text
- Based on ASIC user research 2012. Back to text
- The Telstra Smartphone Index, 2011 by The Nielsen Company (PDF2.78 MB). Back to text
- Research by Google and Ipsos MediaCT 2012 (PDF 6.92 MB). Back to text
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