Financial literacy: starting to sink in
Paul Clitheroe
Australians are getting better at managing debt, recognising scams, budgeting and saving, according to a new survey by the Financial Literacy Foundation.
The survey found 89 per cent of those surveyed said they had the ability to manage debt, 88 per cent said they could spot a scam and 90 per cent said they had the ability to create a budget.
Assistant Treasurer Peter Dutton said when launching the survey report that there is a link between financial literacy and maintaining control of an individual’s lifestyle.
“People will be better with financial literacy skills to make better decisions about money,” the minister said.
“The report captures Australians’ attitudes to money and overall the results are very encouraging.”
The foundation surveyed 7,500 Australians, aged 12 to 75, on a range of financial management issues including budgeting, saving and investing money.
The survey found most Australians wanted to learn more about financial matters, but are less interested in learning about day-to-day money management as they believe they know everything there is to know.
The survey found 77 per cent of adults were interested in learning more about planning for their long-term future while 74 per cent were interested in understanding their rights and responsibilities.
Foundation chairman Paul Clitheroe said while people have the best of intentions to improve their money skills, the task ahead is to make sure they do.
“Every one of us has a policy of good intentions, but in using the research we have to understand the beliefs people have and turn that into actions,” he said.
“The more we know about people’s attitudes and behaviour, the better we’ll be able to stimulate positive change and get to take those few simple steps to managing their money better.”
However, the survey found people were confident about making their own investment decisions (69 per cent), but 70 per cent wanted to know more about investing.
One worrying result from the survey was that 66 per cent of people would not consider risk and return when investing.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
