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Personal finance isn’t a very fun topic to discuss at dinner parties. However, consumers need to be financially literate if they are to thrive. The Choosi Dollar Report 2019 researched the spending habits of Australian citizens and their understanding of financial issues.
A number of important issues were highlighted in this report. The key points are listed below.
Are Australians Stressed About Money?
Australians have become more uneasy about their financial situations in recent years. The report shows that half of Australians experience concerns about their money on a weekly or even daily basis. The majority of Australians are unable to maintain the same standard of living, as inflation erodes the value of their paychecks. The survey showed that 62% of Australians said they were unable to keep up with cost of living increases. It also showed that 44.6% of Australians feel anxious about their debt at least most of the time, if not all of the time.
How Anxious Are Australians About Their Money?
The Choosi report highlighted an interesting paradox. Although the majority of Australians are knowledgeable about money, they also had difficulty managing it properly. This has created significant anxiety for a large share of the population.
The survey found that 47% of Australians worry about their money on at least a weekly basis. The figures were higher for younger Australians. Nearly 65% of Generation Z consumers worry about their money at least once a week.
The percentage of Australians that don’t feel completely financially secure about their financial future is even higher. A stunning 63.2% of survey respondents expressed this concern. As with other questions on the survey, the results differed strongly by generation. The survey found 67.4% of Generation Z consumers express this concern, compared to only 48.8% of pre-boomers.
Almost half of respondents felt their finances are sometimes a little out of control. Unsurprisingly, young adults were most likely do feel this way.
Are Australian Savvy with Their Money?
Despite anxiety about their financial situations, Australians are very financially savvy. The survey showed nearly three-quarters (72.5%) of Australians consider themselves to be money savvy. Citizens in Sydney, Melbourne and Perth were most likely to rate their financial knowledge highly. Over 80% of consumers in each of these regions consider themselves to be money savvy.
Brisbane, Wide Bay and Adelaide scored lower than average on their self-perception of their financial skills. However, around 60% of people in each of these regions still consider themselves money savvy.
Is there a reason to be stressed? How money-smart are Australians?
While it is better to be safe than sorry, the Choosi survey suggests Australians may not need to worry as much as they do. Most citizens are responsible about saving their money. The study showed that 73.1% of Australians have savings goals and 51.7% are saving more than they were five years ago. It also found that 47.7% of Australians save at least 10% of their net income.