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On Friday 25 November 2005, ANZ released two major research studies into adult financial literacy and the causes of financial difficulty in Australia. These studies highlighted that 80% of Australians feel “in control” of their financial situation.
For the first time the research explores the issues which cause a small group of Australians (around 2% of people), who have borrowings, to feel out of control most or all of the time.
 Read the summary report (PDF, 636KB)
The 2005 research includes two related studies:
- Adult Financial Literacy: a quantitative survey of 3,500 adult Australians into financial literacy which provides an update on benchmark study of adult financial in Australia conducted by ANZ in 2003.
- Causes of Financial Difficulty in Australia: a qualitative research into the causes of financial difficulty involving 160 interviews and focus groups with people who had borrowings and had experienced financial difficulty.
The ANZ Financial Literacy Survey was overseen by a steering committee that included representatives of ANZ, ASIC and the Victorian Consumer Credit Legal Service.
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The core issues identified by the research as causing financial literacy difficulty are:
- There is a very high level of banking inclusion in Australia, as compared with some other countries, with 97% of those surveyed having an everyday banking account.
- 84% of people surveyed felt 'well informed' when making financial decisions, up from 80% in 2003.
- Substantially more people knew how to use, and used, newer payment methods in 2005 than in 2002. Usage of electronic channels rose markedly, with the strongest rises in internet banking (from 28% to 40%), BPAY (from 50% to 60%) and direct debit (from 50% to 60%).
- While the overall results confirm that Australian society is mostly financially literate, there are certain groups that have particular challenges. The lowest levels of financial literacy were associated with: those having lower education (Year 10 or less); those not working, for a range of reasons, or in unskilled work; those with lower incomes (household incomes under $20,000); those with lower savings levels (under $5,000); single people and people at both extremes of the age profile (aged 18–24 years and 70 years and over).
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| View the Adult Financial Literacy Report (PDF, 2.39MB). |
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The core issues identified by the research as causing financial difficulty are:
- unhealthy’ ways of thinking about finances including ‘living for today’, ‘financial disengagement’ and ‘aspirational’ spending;
- circumstances or events outside their control such as job loss, poor health and relationship breakdown;
- very low financial skills and knowledge which disproportionately impacts many of the most vulnerable in the community including those with lower education levels, those not employed, people with lower incomes, low savings and people at both extremes of the age profile – 18-24 year olds and those aged 70 years and over.
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| View the Causes of Financial Difficulty Report (PDF, 2.39MB). |
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