iscover
iscover 
NAB’s Consumer Sentiment survey analysed Australia’s attitude towards the persistent cost-of-living challenges, with worries at their lowest in 18 months.
Despite this, the cost of living is still the number one driver of consumer stress. Currently, this figure stands at 66.8 points, seeing a drop of 2.1 points over the last three months. This is the lowest it has been since early 2022, kicking off alongside the cash rate rises.
Is this a sign of more security for Aussie finances? According to NAB personal everyday banking executive, Kylie Young, it’s a promising start.
“After more than a year of budgeting being the hot topic around the dinner table, we may be seeing the first signs Australians are feeling in control of their finances again,” said Young.
“On average, Australians are still saving around $300 each month or more than $3,600 a year, which has helped build a buffer to weather the economic challenges. But the biggest spending cuts may be behind us.”
NAB said that fewer people are cutting back on spending. More people are going to restaurants (53 per cent now, compared to 57 per cent midyear), spending on entertainment (45 per cent now, 49 per cent midyear), and taking a holiday (38 per cent now, 43 per cent midyear).
“This is also an early glimmer of good news for small businesses who have been doing it tough over the past two years as households chose to cut back and prioritise the essentials,” said Young.
“Australians are proving resilient, they’re looking for smarter ways to save and spend and, even though it’s early days, this may be an indication of a more ‘normal’ 2025.”
With this increased security and spending comes less savings. As noted by Young, Aussies are saving around $300 each month, down from $320 midyear, which was the peak of 2024.
Related: Mortgage repayments a financial priority for consumers
ISCOVER 
