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Commonwealth Bank's new budget tool to help Millennials pay bills on time

Commonwealth Bank's new budget tool to help Millennials pay bills on time

Commonwealth Bank has launched a new tool to help younger Australians struggling with their finances better manage their bills.

Bill Sense is a new feature within the CommBank app and predicts when bills fall due, allowing its banking customers to better manage their finances.

CBA’s new product allows customers to see up to 12 months in advance how much money is needed to cover bills for each month.

The country’s largest bank’s latest digital product offering comes off the back of its own research that showed a large proportion of younger people found it hard to budget.

It found 70 per cent of Millennials surveyed struggled to prioritise financial commitments, saying the thought about money made them feel anxious.

CBA head of behavioural economics William Mailer said a third of young respondents recognised impulse buying was the root cause of their financial instability.

“It’s no surprise that our recent survey showed that so many young Australians are facing some level of financial anxiety with these decisions,” he said.

“Smart digital services make trade-offs between today and tomorrow clearer, can help us to keep control today and stay on track towards our goals.”

The digital feature also predicts upcoming bills outside of direct debits and is based on previous payment history from CBA accounts or credit cards.

CBA’s report found the top three stress relievers for people aged 24 to 39 were daily exercise, being able to pay bills on time and knowing how much money is in their account.

It also revealed Millennial men were more likely to succumb to the social pressure of needing to have the latest technology or fashion, which would come at the expense of their bank balance.

Habit Change Institute director Dr Gina Cleo said setting small financial goals was the best way to meet long-term aspirations.

“When Millennials believe in their ability to set realistic goals, they become motivated to achieve these milestones,” she said.

“It is through creating daily habits that we can seamlessly implement into our routine that we begin to alleviate stress and start to make consistent, impressive, inspirational strides towards our long-term goals.”