Gen Xers left behind in the savings stakes

ACROSS all areas of our lives we've learned that a one size fits all approach will never work. And when we hear of an average sized 10, or earlier this week when we heard the average Australian was a 37-year-old single woman working and living in the inner city, it all seems bizarre that we set a generalisation for life.

Just today it emerged - according to news.com.au - that Australians are saving more than ever. Not any of my neighbours.

The latest ING DIRECT Financial Well-being Index has revealed that the average household has amassed around $15,427 in the bank in the first quarter of this year, up more than $5000 compared to two years ago.

But my fellow South Australians and those aged between 35 and 49 it's more than likely you're not saving as much as some of your countrymen (Duh - South Australians average a lower income and average bigger families).

According to the index, Gen X (35-49) are saving the least with a median savings bank of $8060 compared to $14,377 for Gen Y (18-34) and $17,744 for baby boomers (50-64).

And in a light-bulb kind of moment ING Direct has assessed the reason behind GenXers losing in the savings stakes just may be the fact that most of them have got children underfoot.

By my calculations this means Gen Xers are actually achieving far more with their finances. This month, research undertaken by Associate Professor Paul Henman, of the School of Social Work and Human Services at the University of Queensland, considers it costs at least $300,000 to raise a child - not including education costs, private health insurance or involvement in sporting or extracurricular activities. These costs could add another $10,000 a year to raising a child. 

In other words Gen Xers, don't be disillusioned to hear we aren't saving as much as Gen Ys or Baby Boomers. After all , most of us are shelling out $26,000 per child per year - getting far more bang for our bucks than other generations. My question is - why isn't the savings divide even wider?

Small changes make a big difference

 I’ve been trying to do the unthinkable this week – give up takeaway coffees and take packed lunches to work.

OK, so it doesn’t sound that hard, but I’m really struggling! For most of my working life I’ve lived in rural areas where good coffee is just not readily available close to work, but in Melbourne coffee shops are everywhere.  So why wouldn’t I take advantage of that?

Most mornings I grab a coffee before work, and then there’s that mid-afternoon slump where a caffeine hit really is the only sane answer to the day. And if you’re anything like me you’re a little disorganised when it comes to getting lunches ready before heading out the door.

But spending $3.50 per coffee and $5 - $10 for lunch each day is making my work week rather expensive. That’s why I’m trying to make this small change, which will result in big savings at the end of each month.

But even though this is a short working week I’ve still only managed to pack my lunch two out of three days so far! Yesterday I had just a muesli bar to keep me going until I discovered some awesome sandwiches in the work kitchen that were leftover from a function. Score! But let’s face it - I can’t scrounge around for lunch everyday…

I know I can do it I just need to make some good habits. Which makes me think that maybe this is really what managing money and saving money is all about - good habits.

Let’s hope I’m on the way to starting one!

Saving receipts - a little organisation goes a long way

LAST Monday I logged on to my internet banking to check the overall damage I had caused after a typical weekend of wineries, football, kids sports and restaurants to get the shock of my life.

Leaping off the screen was a $174.20 debit for our stop at The Oyster Bar after the football the night before. Under normal circumstances (especially when living in Queensland and New South Wales) I wouldn't have batted an eyelid at seeing a restaurant EFTPOS transaction of this value. But in good old Adelaide its very cheap to go out for great meal - and I knew two dozen oysters, potato wedges and a drink each just didn't equate to a bill of this size.

Frantically, I dug through my wallet in what I thought would be a futile attempt to find the receipt. Against the odds, I kept the receipt and the EFTPOS transaction.

At that time I was both thanking my lucky stars and kicking myself at the same time.

Generally, I'm the person in line at the petrol station or restaurant who, when asked if I want a receipt, says no. And if I put my purchase on my credit card I NEVER check my statements. 

It was a valuable lesson. From here on in I'm keeping every receipt and checking every transaction.

And for more reasons on why holding on to receipts for extended periods of time is common sense check out this story http://www.news.com.au/money/money-matters/save-yourself-by-filing-receipts/story-e6frfmd9-1226625666517

Cutting that grocery bill

If you're anything like me, life always seems like its on go-fast mode. As a result, things can get a little disorganised (you should see my pantry).

I was mortified to check my last few months bank statements to see I was averaging $550 in groceries a week - unfortunately with a fair slab of purchases ending up in the rubbish bin weeks later.

Why? Because I was buying things we had run out of to refill the chock-block pantry rather than buying what we needed for the week ahead.

It's just that I am always in such a rush. My challenge was to work out so I could get the pantry into a manageable state, save money, and stop those nightly pre-dinner drop ins to the supermarket.

The solution? Planning. Simple, yet effective.

On Saturday I worked out the week's meals in advance and then sorted the pantry to determine what I did and didn't have. From there the grocery list and a shopping trip only buying these items really reined in the cost.

Finally, so I didn't stray, I stuck a copy of each nights dinner, recipes and ingredients on the fridge. If I can manage this into the future I'm saving money, saving the environment (less rubbish), saving time (fewer shopping trips) and thankfully getting our pantry into some kind of order.

What are your tips in balancing the weekly shopping trips? Buy as you go or all in one hit?

How much do you save by not having alcohol for a day, week, month....

This would depend on how much you drink I suppose and if you don't drink at all maybe you could substitute no chocolate or some other favourite.  Put the money saving in a jar or glass in plain view and watch it grow.  You could use this to save toward a weekend away or another favourite treat.

Small Change

How much can you collect if you ......

Put all small change from your bag, purse, wallet, pocket in a jar at the end of each day.


How much did you collect?