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An assessment of financial literacy levels across young Australians
YOUNG MONEY: HOW IS GEN Z SPENDING AND SAVING?
Gen Z is more interested in buying products that will give them the best value based on their price.
There are many theories as to what drives financial literacy, including socioeconomic backgrounds and cultural or geographic considerations. It’s also widely understood that our younger years are formative for establishing financial behaviours and habits that can build the foundations of our financial capabilities as adults.
Sound financial decision-making is strongly linked with improved financial wellbeing and greater participation in economic life, affecting quality of life, the opportunities people can pursue, their sense of security, and the overall economic health of society.
Financial attitudes and behaviours
- Only half of young Australians (aged 15-25) think they have a handle on managing their finances.
- Planned purchases incentivise
saving for the future. - Young people struggle with day-to-day money management with 25% rarely or never setting a budget.
- Less than 1/3 of young people calculate their money ingoings and outgoings.
Findex conducted a 2021 Financial Literacy Study, surveying more than 270 young people (aged 15-25) to identify any common themes that potentially indicate lower levels of financial understanding across the nominated cohort.
There are many theories as to what drives financial literacy, including socioeconomic backgrounds and cultural or geographic considerations. It’s also widely understood that our younger years are formative for establishing financial behaviours and habits that can build the foundations of our financial capabilities as adults.
Findex would like to acknowledge the support of the Findex Community Fund and the following charities for their assistance to conduct this research survey.
Differences in behaviours and financial literacy
- The gap in financial literacy between those in regional and metro areas is closing.
- Socioeconomic considerations continue to drive the financial literacy gap.
- Young Australians are cautious with their use of credit with only 1 in 5 owning a credit card.
- 16% of young Australians use a Buy now / Pay later service and / or a short-term loan provider.
Financial literacy
- Young people are financially literate when it comes to medium-term goals, but struggle with day-to-day.
- Over 70% of young people look to their parents or guardians for advice on how to manage their finances.
- Young Australians lack confidence with managing their money.
- 1 in 3 feel their understanding of financial literacy is basic.
- 1 in 10 say they have poor to no knowledge of financial education.
The survey was conducted by Findex Group Limited ABN 40 128 588 714 and Findex Community Fund ABN 16 285 893 026 (Findex) between 4 and 25 March 2021, with 274 respondents aged 15-25 years. All statistics and data contained in this report and on this website are extracted from these survey results, or otherwise referenced. While all reasonable care is taken in the preparation of the material, to the extent allowed by legislation Findex accept no liability whatsoever for reliance on it. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Findex assumes no obligation to update this material after it has been issued. You should seek professional advice before acting on any material.