How the pandemic has helped us SAVE money: New data reveals Australians have more cash in their bank accounts than before Covid-19 shut down large parts of the economy

Despite an economic downturn, job losses and a lagging export sector, Australians are actually saving more cash than they did before the coronavirus pandemic started.

Bank balances Down Under have grown by an average of about $8000 in recent months with more people eyeing less opportunities to spend.

The comparison site Finder.com.au found that the average Australian now has about $33,000 tucked away for a rainy day - a substantial amount more than before the Covid crisis and well above the July figure of $25,000.

Despite a massive downturn in GPD, job losses and a lagging export sector, Australians are actually saving more cash than they did before the Coronavirus pandemic 

Bank balances Down Under have grown by an average of about $8000 in recent months with more people eyeing less opportunities to spend (pictured, a shopper strides past for Sale signs on Boxing Day in Sydney)

Finder personal finance expert Kate Browne said the pandemic is prompting many Australian workers to explore how they manage their money and change bad habits.

'At some point in your life, you may have experienced an event which now controls your mindset concerning your finances,' she said.

'That mindset can mean you're afraid to spend money or you spend it the minute it hits your bank account.'

In December Australians on average saved $908, up from $723 in September.

The survey data collected from 20,0000 Australians suggests that more time indoors due to the threat of coronavirus is helping people moderate their spending.

Another major factor is the closures of international and state borders ruling out expensive travel and holiday plans.

In December Australians on average saved $908, up from $723 in September (pictured, two women in Sydney do some last-minute Christmas shopping on December 23)

Pictured: Event staff scan the tickets of patrons at Circular Quay on New Year's Eve in Sydney, Thursday, December 31, 2020

But uncertainty about job security and the economic climate is also playing a role, according to Westpac's head of savings and investment Kathryn Carpenter.

'People have become a lot more conscious about how they spend and save during this time,' she told the Herald Sun.

'It's been an opportunity to reset their spending and savings habits and they have been forced to be aware of their outgoings.'

But although savings have increased, the data showed that most Australians do not have a 'proper savings plan'.

In fact, about 20 per cent labelled themselves 'spenders' who believe in 'retail therapy' and splurging on impulse buys.

'People should set up a dedicated savings account that is separate from your spending accounts. It's not about how much you save but it's about how regularly you save,' Ms Carpenter.

Pictured: Healthcare workers are seen at drive through testing facility at Springers Leisure Centre in Cheltenham, Melbourne, Australia, December 31 2020

Pictured: A long line of cars wait in a que at a drive through Covid-19 testing facility in Dandenong, Melbourne, Thursday, December 31, 2020