The financial conditions of Australian households improved in 2013, thanks to lower interest rates, higher savings levels and rising equity and property values. Despite this, consumers have started the new year worried about the economy and their job prospects. According to a number of consumer surveys that have been published in recent weeks, consumers plan to maintain a conservative approach to their finances - saving more and keep their debts in check. The wealth effect, which often accompanies improved household financial conditions and which leads to higher consumption and borrowing, did not kick in last year.  The sharemarket index, the S&P/ASX 200, rose 20.2 per cent last year. At the same time, dwelling values in Australia's capital cities rose by an average of 9.8 per cent. And, according to the RaboDirect Savings Barometer, 29 per cent of consumers (up from 19 per cent last year) said they had a savings safeguard that would last them at least seven months.The latest Westpac-Melbourne Institute Index of Consumer Sentiment shows a fall in sentiment in January, although the index remains in the zone where optimists outnumber pessimists. People feel less confident about the prospects for their finances in the year ahead, and they are also less confident about the outlook for the economy.According to ME Bank's Household Financial Comfort Report, there was an improvement in household comfort with both income and the ability to manage current living expenses during the six months to December.However, job insecurity is now a top three concern among households, rising five percentage points, to 31 per cent of households, in the six months to December.The number of households struggling to save each month increased by two percentage points, to 51 per cent. And 46 per cent have less than $5000 in savings for an emergency. Of those households with savings, 37 per cent have made it a priority to pay off their debts.According to the St George-Melbourne Institute Household Financial Conditions Report, 83.4 per cent of households reported that they were in a stable financial position, with 48.6 per cent able to save during the December quarter - an increase of 3.3 percentage points over the previous quarter.Holidays were the most popular reason for saving, with 57.2 per cent putting holidays at the top of their list. Just over 50 per cent said they were saving for a rainy day and 47.5 per cent said they were saving to pay off debt. There was a significant increase in the number of people who said they were saving to reduce debt.Deposits in banks were the most popular place to put savings, at 84.2 per cent.According to RaboDirect, the average savings balance has increased from $1396 at the end of 2012 to $1995 at the end of last year.And, according to MasterCard's Consumer Financial Priorities Report, the top priority for 2014, which was nominated by 46 per cent of respondents, was to save more. Other priorities included holidays, a new car, renovations, home appliances and furniture.Dun & Bradstreet said that