Australians saved $3300 each last year

Australian households saved, in aggregate, $74 billion last year, 10 per cent of disposable income, or an average of $3300 for each of us.

Five years ago, Australian households spent every dollar of income, and at times a bit more. During the confident times that preceded the GFC, many people reduced their saving and increased their borrowing. The dangers, even the folly, of that strategy were exposed in 2008 and early 2009.

Now holdings of financial assets, particularly bank deposits, are increasing and debt is being repaid. More people are ahead of their mortgage repayment schedules and paying off credit card balances in full each month; fewer are borrowing against the value of the family home to spend on consumer goods.

The number of Australian households that have stepped up saving has increased more than in other countries.

Source: The Australian