How much are Aussies really putting away into savings?

More than half of the population are focused on growing their savings in 2025, according to the latest Canstar Consumer Pulse report, and more than 62% of Aussies claim they are putting money away each month—a significant increase from the previous year, where just 51% said they were regularly contributing to their savings.

It’s not just an increased focus on financial security, either. For the first time since 2019, saving for a holiday is the top savings goal for Australians. There are likely to be a few things at play: markedly, that after four years of increased costs of living, rate hikes, wage stagnation and a general malaise in the country’s economic performance, people are valuing leisure and experiences ahead of more pragmatic financial goals.

The same report also revealed that, while fewer than one-third (28%) of Australians are optimistic about their financial future in 2025, an ever-growing proportion of Australians feel confident the Reserve Bank (RBA) and the government can ease inflation and lower the cost of living this year.

For the percentage of Aussies who are saving, they’re putting away an average of $558 per month, according to the report; an increase of more than $200 from the year before, but still not quite at the high of 2021, at $671.

However, while we may be putting more money, more regularly, into savings, over one-third (35%) admit they have had to dip into their savings.

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Aussies’ top financial savings goals for 2025

While Aussies may be more focused on saving for their next overseas holiday, they’re still keeping a close eye on their finances, with saving for a financial buffer as the second most popular goal.

Less surprisingly, saving for a home is still a top priority for many Aussies, as the third most popular savings goal in 2025.

The decline in those prioritising saving for living costs (dropping from 17% in 2023 to just 11% in 2024) may suggest that households are adjusting their budgets or feeling less pressure to save specifically for essentials. Instead, Australians appear to be balancing short-term necessities with long-term aspirations, such as travel and home ownership, as their financial circumstances allow.

When asked what expenses they wouldn’t give up, travel was the most popular answer, with almost one-third (31%) saying they won’t forgo holidays. Dining out follows at 26%, while 22% refuse to skip celebrating special milestones. Additionally, 21% are determined to keep buying gifts for others, 20% won’t give up alcohol, and 19% say their daily takeaway coffee is non-negotiable.

These choices highlight a growing trend for achieving financial balance: the ‘dream state’ of financial discipline with enjoyment and meaningful experiences.

Where are Australians putting their money?

Savings accounts continue to be the most popular option for Australians to manage their money, with 44% of savers choosing this method, making it the top choice across all generations. While this strategy isn’t a bad one, success will very much depend on the rate of interest savers are getting on their accounts.

Some banks are offering competitive rates of up to 5.5%—provided savers meet a few monthly terms and conditions—while other banks’ rates are barely hitting 3%. Knowing what a competitive rate is, and how you can get it, will make a big difference to how much you can save.

The next most popular way to manage savings was investments, such as shares, managed funds, and ETFs, followed by term deposits.

Baby boomers prefer term deposits at a much higher rate (15%) than the national average (9%)—which likely reflects their focus on longer-term financial planning.

For those with mortgages, nearly one-third (32%) of owner-occupiers and 35% of investors channel savings into their loan via offset accounts or directly into the loan with redraw facilities available. These approaches can potentially reduce interest costs and help pay off the loan faster.

Looking to boost your savings this year?

If, like many Aussies, putting money into, or increasing the amount of money you deposit into your savings each month, is top of your priorities list, there are some simple things to consider:

• Review your current savings account: research whether you’re getting the best interest rate. Shopping around and potentially opening up a new, dedicated savings account with a higher interest rate could help you hit your goals faster
• Set a savings goal: setting a financial goal will help you stay committed and help you work out how much you need to put away to hit your target
• Download the Canstar app: compare things like savings accounts, home loans, and credit cards, check your credit score, and manage your money

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