Aussies failing to educate themselves on financial literacy
Australians have high confidence but low knowledge when it comes to basic financial literacy, according to a survey.
ME’s survey of 1,500 Australians found 13 per cent rated their banking knowledge as “below average” but 60 per cent failed a basic banking literacy quiz.
ME head of deposits and transactional banking, Nic Emery, said this suggested that many banking customers may be making poor banking decisions.
"Some Aussies fail to educate themselves because they find banking dull and complex and think they know best, while others find working with numbers difficult and put their head in the sand,” Emery said.
“But like it or not, banking is part of our daily lives and understanding the basics is a life-skill, like being able to cook and catch public transport."
The survey found that 35 per cent had done nothing to educate themselves on banking products and services.
“My advice is to get informed. There are plenty of educational options like the Government’s MoneySmart website to ME’s engaging online school of money, ed. Alternatively, go see a completely independent adviser like an accountant or enrol in a course,” he said.
The survey found that 74 per cent did not know what a comparison rate was, 74 per cent did not know putting a car purchase on a lengthy home loan may cost more than a separate personal loan, and 43 per cent did not understand compounding interest and the benefit of being patient with savings.
Recommended for you
In its first FY26 action, ASIC has cancelled the AFSLs of two Sydney advice firms over their failures to pay industry funding levies.
The Federal Court has made interim travel restraint orders against two Falcon Capital directors, while also freezing one director’s assets.
For the 2025 financial year, all but one listed advice licensee has reported double-digit share price growth – but which licensee has seen the best performance and what activities have they enacted during the period?
Evidentia Group has confirmed its new executive leadership structure, having been formed from the merger between Evidentia and Lonsec Investment Solutions, to shape the future of managed accounts.
