Research published by Commonwealth Bank (CBA) shows “the majority of Aussies will set a money-based New Year’s resolution in 2024.”
According to the latest CommBank research, 76 per cent of Australians “will make at least one financial resolution as they dive into 2024.”
Almost one in four (23 per cent) said they “would look to create a budget or improve their budget, three in ten (30 per cent) said they would plan to spend less, and one in eight (12 per cent) will look to change jobs in the New Year in a bid to earn more money.”
Younger Aussies are notably “more likely than older Aussies to have at least one New Year’s financial resolution (Gen Z and millennials 92 and 89 per cent respectively, compared to Gen X and baby boomers 74 and 59 per cent respectively).”
CBA’s Chief Behavioural Scientist, Will Mailer, says CommBank and the behavioural science team are looking “at ways to make it easier for customers to set financial goals, as well as follow through on them.”
He said:
“It’s encouraging to see Aussie’s are thinking about ways to improve their financial health in the New Year, with the continued cost of living pressures potentially driving this. As a behavioral science team, we’re continually looking at ways to make it easier for customers to not only set financial goals, but also to follow through on them. Resolutions often fail to stick, however the science suggests there are some practical steps you can take to increase your chances of success in 2024.”
Firstly, Mr Mailer recommends people make sure they are harnessing their bank’s digital tools.
As noted in the update:
“We are all human, which means we can forget important dates, get distracted, give in to impulse and even be too optimistic in our planning. Consider using available technology to set up auto-transfers where it makes sense. Some banks have prediction tools to help you see which big bills are around the corner. There are other tools that can help you to limit your spending, or even block certain types of harmful spending.”
Mr Mailer added:
“These tools can help us to better manage human tendencies that might see us slip on important goals.”
Mr Mailer also recommends being specific “about the actual things you want to do more or less of with your money.”
As stated in a blog post:
“A common trap is to set goals that are too vague, and not actionable or measurable. Saying things like ‘I want to get fit’, or ‘I want to get on top of my money’ is not the best strategy. Instead, you might use your bank’s spending summaries and budgeting tools to identify those expense categories that no longer bring you happiness, like old subscriptions or expenses that you might be able to reduce. Make a specific plan, like how much you want to spend, over what time, and how you will make that happen.”
Mr Mailer also recommends making “use of existing programs designed to support those facing cost of living pressures.”
Tools available in the CommBank app include:
- Goal Tracker – to help set and reach savings goals
- Spend Tracker and Transaction Notifications – to help track and check spending
- Category Budgets – to set budgets for different spending categories
- Cash Flow View – to track income, spending, savings and investments
- Bill Sense – to predict future bills and help manage regular payments and bills
- Benefits Finder – to help find unclaimed benefits, concessions and rebates.