Sally and Simon Hulse are just like any other young family. The new parents are enjoying watching their 16-month-old daughter grow while juggling their careers in the auto industry.
But, like an increasing number of Australians they are struggling financially.
“We’re just managing with what we’ve got,” the 34-year-old says.
After choosing to start a family over buying a property – because doing both was not an option - Sally went on maternity leave.
“After being off on maternity leave for just over 12 months I have no savings left,” she explains.
The new mother adds that if it wasn’t for family members helping to buy nappies and formula, she doesn’t know how they would have managed.
“We were scraping by, hence me having to go back to work,” Sally, who now works part-time, says.
Sally says all her savings have been depleted since going on maternity leave. Photo: AAP Source: AAP
Childcare, rent and utilities are all adding to the Hulse’s financial stress.
It’s a problem many Australians are facing.
Increased financial stress
The 14th edition of ME Bank’s biannual Household Financial Comfort Report shows that households who “typically spend all of their income and more” increased three percentage points to 11 per cent during the six months to June.
About a quarter of Australian households have less than $1,000 in cash savings.
“Clearly, this is a potential tipping point,” consulting economist for ME, Jeff Oughton, says.
The latest report found that the cost of necessities continues to be the major financial concern, with more than half of households reporting it as their ‘biggest financial worry’, up seven points to 53 per cent in June 2018.
“It’s tiring; we are pretty much living week to week. We’ll pay our bills but the money situation is not great.”
When asked why their financial situation worsened during 2017– 18, 44 per cent of households said it was due to the cost of everyday items, an increase of four points since the previous report.
“If we see big negative shocks in the coming year, whether they are higher loan rates or an international trade war, then a lot more families will suffer increased financial stress,” Oughton says.
Uncertainty ahead
After paying for childcare costs, Sally says there is little left of her pay.
“My wage covers the groceries and that’s about it, so he’s [Simon] still responsible for bills, rent, car payments, rego, insurance, and all the other bits and pieces.”
Their financial stress is affecting how they spend time as a family as Sally says things like seeing a movie or travel are out of the question.
“It’s tiring; we are pretty much living week to week. We’ll pay our bills but the money situation is not great.”
