Financial literacy has emerged as a pressing issue in Australia, with 60% of individuals struggling with basic concepts, a recent report from Your Financial Wellness has discovered. The gap between those well-versed in financial matters and those vulnerable to financial pitfalls carries substantial economic implications.
Your Financial Wellness (YFW) is an independent online platform which helps you understand your finances so you can make informed decisions about your financial future. When you consider how financial wellness can impact your mental and physical security, it’s easy to see why financial literacy is such an invaluable life skill. Yet, it’s not taught in schools. Many people learn financial management from their families and friends, and by learning from their own experiences. Persuasive messages in the competitive financial markets can make it a challenge to work out what’s right for you.
Australian Mutual Bank’s partnership with YFW aims to provide our members with tools and resources to assess and improve their financial wellbeing. Through an eight-question survey, members can gauge their current financial situation and access resources tailored to their needs. This program empowers individuals to take control of their finances and work towards their goals.
YFW recently released the 2024 Your Financial Wellness User Insights. These findings were obtained by analysing the financial health of 5,000 Australians. This comprehensive analysis, based on responses to up to 100 questions about finances, offers a profound understanding of the Australian financial landscape
“Over one-third of Australian adults find dealing with money stressful, even when things are going well.”
No single factor alone can determine financial wellness. The report explores the intricate landscape of financial wellness, focusing on a range of crucial factors, i.e. gender, age, income, employment status, home ownership, dependents, debt, savings & relationship status.
You can view the full YFW User Insights 2024 report here.
Alex Hassall, CEO of Your Financial Wellness, describes the survey's findings as an ‘eye-opener’. "What we’re seeing is the emergence of a two tiered system - those who avail themselves of financial capability tools and financial advice are doing significantly better (they experience less and greater overall wellbeing) than those who don’t"
The findings indicate a substantial variance in financial health: YFW platform users boast an average Financial Wellness Score of 6.4 out of 10, surpassing those not engaging with financial capability tools, who average at 5.3.
This clear advantage underscores the critical impact of utilising financial wellness resources for enhancing personal financial health.
Key Insights
- A staggering 75% of Australians struggle with paying bills on time, a challenge less pronounced among YFW platform users, at 47%.
- Financial stress is widespread, affecting 54% of the population, yet significantly lower at 27% among YFW users, indicating the effectiveness of financial wellness tools.
- Amidst a deepening cost-of-living crisis, 40% of Australians lack a basic understanding of inflation's impact on their savings.
- 36% of respondents have less than a month’s salary in savings. This suggests that a large cohort of the population would benefit from access to basic budgeting and savings literacy.
Your current attitudes to money could be dictating your overall financial success. Understanding this could improve your fortunes forever. Becoming more financially literate not only improves your chances of becoming a better money manager and keeping track of finances but also becoming better at choosing financial products.
Some key findings from the report shows that 20-34 year olds top goal is to buy a home and 35-49 year olds top goal is to repay their mortgages. By fulfilling these goals, individuals are more likely to feel comfortable with their financial situation.
- Home ownership is highlighted as a critical determinant of financial wellness, with owners reporting a significantly higher average wellness score (7.7) compared to renters (5.3).
- This disparity points to a crucial area for policy enhancement and greater awareness efforts, emphasising home ownership as a cornerstone of financial stability.
The YFW report’s insights offer a comprehensive understanding of the financial health of Australians and underscore the importance of proactive financial management. As we navigate the complexities of today's financial landscape, we are committed to empowering our members with the tools and resources they need to achieve their financial goals.
To assess your financial wellness and gain access to personalised reports, metrics, plans, and guides, you can subscribe to YFW at any time. The YFW program is free for all Australian Mutual Bank members. Simply click here to get started - it only takes a few minutes, and the results could make a significant difference in your financial journey.
Before you decide to use the Your Financial Wellness service, please note that:
- The service (www.yourfinancialwellness.com.au) is owned and operated by My Online Guides Pty. Ltd. ABN 81 613 643 100
- Australian Mutual Bank and My Online Guides Pty. Ltd. are independent of each other. Any information you decide to share with My Online Guides Pty. Ltd. is confidential to them and is not shared with the Bank
- Australian Mutual Bank does not provide any opinion or recommendation regarding the information or services provided by My Online Guides Pty. Ltd.
- You should carefully read and understand the My Online Guides Privacy Policy, the User Agreement and any other documentation provided by My Online Guides Pty. Ltd.
- All advice provided is only general in nature and does not take into account your personal circumstances. Please consider if the advice provided is appropriate for your needs before making any decision.
