As the cost of living is set to hit a global tipping point, experts have revealed that Aussies are increasingly likely to transfer money to overseas family members.
Whilst Aussies are being stung with a 5.1 per cent annual inflation rate, studies are showing that a majority of Australians with overseas relatives believe that their international family will fare worse than them.
A study undertaken by Money Transfer Comparison showed that 35 per cent of Aussies were likely to send money to their overseas family members, while 6 per cent revealed that they would pay international family members’ bills.
Alon Rajic, Founder and Managing Director of Money Transfer Comparison said that a 20-year high for the cost of living is to blame.
“In a climate of rapidly growing inflation, a sizable proportion of Australian households are willing to impact their own finances to help their relatives overseas,” Mr Rajic said.
“This indicates that, with inflation a global problem, families here believe they will be better off than families in other countries.”
The study revealed that 16 per cent of Aussies are expecting to send $10,000 or more to overseas family members in the near future, with 18-30 year olds pegged as the most willing to part with their funds for their relatives.
Expert reveals cost-cutting tips for international transfers
With the survey showing that 33 per cent of respondents generally send money internationally through their bank and 22 per cent through a specialist money transfer service, Mr Rajic urges households to reduce the costs of sending money.
“With disposable income expected to continue dropping for Aussies, it’s a good idea to shop around for the most affordable transfer services to ensure you maximise the funds going to family overseas and avoid being stung by fees and high exchange rates,” he says.
Mr Rajic has revealed six cost-cutting strategies that all Aussies can utilise to save money when sending international transfers. The strategies are:
Transfer money at the right time:
Mr Rajic advises that currency rates can fluctuate up to one per cent daily, and recommends enabling rate alerts from a money transfer service which will flag the most cost-effective time to make a transfer to relatives.
Avoid transfer fees:
International wire fees can start from $35, with warnings that they are set to increase. Mr Rajic advises that money transfer providers often offer better deals than banks - with some even offering $0 transfer fees. Mr Rajic also says that money transfer comparison tools can help to flag the best deals.
Purchase overseas goods where possible:
With 6 per cent of survey respondents revealing that they were likely to send Australian goods to their overseas family, Mr Rajic urges Aussies to use local websites to provide goods to international relatives where possible, which will drastically cut shipping costs.
Find cheap international shipping:
Courier comparison services are highly recommended by Mr Rajic, who urges Aussies to compare international shipping rates when sending parcels.
Choose the best currency:
Mr Rajic says that using international currencies when making wire transfers could help Aussies avoid paying more. He says that some countries such as Thailand, Mexico and India accept USD as a form of currency, whilst urging Aussies to pay attention to lower exchange rates and utilise major currencies where applicable.
Make fewer transfers:
Mr Rajic urges Aussies to make less frequent, larger transfers to avoid being repeatedly stung with transfer fees. He also states that many currency transfer systems offer better rates - or will allow negotiation of a better rate - when larger sums of money are transferred.