COVID forces hospo workers to be more financially savvy
Two new studies have shown that hospitality workers have become more financially conscious – largely in part to the COVID crisis.
AMP commissioned new research in August on the long- and short-term financial impacts of the current crisis on everyday Australians – from day-to-day spending to major financial decisions including retirement, and buying property.
According to the research, 71 per cent of those in the hospitality industry say they are more conscious of saving their money as a result of COVID-19. Additionally, two in three Aussies’ finances have been impacted by COVID-19 and nearly half (49 per cent) of those surveyed predicted it will take at least three months to get their financial goals back on track.
“The pandemic has pushed more Aussies to think about their personal finances. With talks of the recession and consumer confidence down, it’s clear that many Australians have been impacted by COVID-19, including having to hold on making significant financial decisions from retirement to travel to buying property. We’re seeing Australians being more prudent with their saving and spending decisions, partially due to lockdown restrictions but also relating to a desire to be prepared for any future rainy days,” commented AMP Bank’s director of retail solutions and direct distribution, Michael Christofides.
Recent data from the Australian Bureau of Statistics shows that consumer spending has taken a significant hit of late, showing the steepest decline in sales volumes since the introduction of the GST in 2000. This is in line with AMP’s research which found that over a third (38 per cent) of Australians say they’ve cut back on spending across the board. In addition, a fifth of Aussies (21 per cent) noted they are spending less and putting more money towards saving and investing
Meanwhile, comparethemarket.com.au recently released its Financial Consciousness Index (FCI) found that accommodation and hospitality workers on average scored 51 out of 100. This places them in the ‘Conscious’ category, which means they have decent financial capability, and are willing to make improvements to key financial matters that impact their money.
“Our results reveal that workers in the accommodation and food industry are on par with the Australian average. This means that these industry workers typically have a strong understanding of personal finances and are great at sticking to their budgeting goals. Regardless of how you score, it is a good idea to continuing updating your knowledge of financial products and money strategies to continue improving your financial situation. Now, more than ever, being financially well and improving one’s finances could be the difference between getting ahead or falling behind fellow Aussies during the recession,” stated David Ruddiman, comparethemarket.com.au’s general manager of digital banking.