According to a new survey by the Commonwealth Bank, the majority of Australians are protecting themselves against the high costs of living and the turbulent economy by cutting back on luxuries and saving more of their income.

<p>The bank&#0039;s &#0039;Savings Sense&#0039; survey revealed that more than seven in 10 Australians (71%) are actively putting money into savings accounts. <br /><br />According to the survey, Australians are saving on average 13% of their net income. Measures they are taking, or actively considering taking, include cutting back on luxury items (68%), using their car less (45%) or using public transport more (27%). <br /><br />Australia hasn&#0039;t experienced a recession for 15 years but this research highlights that consumers remain keen to maintain a safety buffer of savings and are determined to save more, not less, in the future, noted CommSec chief economist Craig James. The new era of consumer conservatism certainly stands in contrast to the high-spending periods of the past.<br /><br />The survey also found that security is a key driver for saving, with the vast majority of Australians (88%) saying that saving money helps them feel safe, responsible and in control. Other motivations to save vary between the generations, and include saving for holidays or expensive items, and saving for retirement.<br /><br />Australians are investing their dollars in several different ways, including high interest savings accounts (31%), or opting for regular savings or check accounts (59%) and online savings accounts (19%). Alternative savings strategies include investing in property, making additional superannuation contributions or buying shares. <br /><br />The &#0039;Savings Sense&#0039; survey also revealed that a major barrier to saving is a lack of understanding about financial management. Overall, 44% of Australians said that they might save more if they understood better how to manage their finances; nearly two-thirds (60%) of 18 to 24 year olds agreed that this was the case.</p>