The latest ANZ Survey of Adult Financial Literacy in Australia shows mixed results for Australians’ financial literacy. Launched in Melbourne this week, the survey results from 2014 show our progress on financial literacy is far from linear.
The survey has been conducted every three years since 2002, providing rich insights into the changing nature of our interactions with financial products and related technology, as well as our financial behaviours.
Here, we look at the good, the bad and the ugly of the current state of financial literacy in Australia.
- Less reliance on credit cards: Since 2011, the number of people using credit cards to pay for goods and services has fallen from 71 per cent to 64 per cent.
- Commitment to saving: Three-quarters of people said they try to save on a regular basis. This has remained relatively high since the GFC.
- Consolidation of super: There has been an increase in the number of people reporting they are in a single superannuation fund (rather than several) at 63 per cent up from 59 per cent in 2011 and 2005.
- Understanding investment principles: The number of people who considered diversification across types of investment to be important fell to its lowest level across all surveys: 72 per cent down from 78 per cent in 2011 and 79 per cent in 2002.
- Credit card balance: 35 per cent of Australians do not pay off their credit or store card in full each month. This is up from 31 per cent in 2011.
- Joint liability for loans: Awareness that all parties are responsible for repayment of a jointly held loan was lower than in 2011. Of particular concern, is that 25 per cent of women with a partner and mortgage of $300k or more did not fully understand their repayment obligations in relation to their home loan.
- Too good to be true: The number of people who could recognise an investment as “too good to be true” fell to 50 per cent from an already concerning 53 per cent in 2011.
Click here to download a copy of the full report [PDF 824kb].