What was uncovered was that few Australians claim that they are fully satisfied with their financial situation, with only 22% indicating they are very satisfied with their financial situation, over half are somewhat satisfied, and 22% report not being satisfied at all with their financial state.
Younger males are much more likely than younger females to be very satisfied with their financial situation, with more than half (58%) agreeing they want to manage their money better. This desire is translating into behavioral change, with 63% dedicating more time to increasing their financial knowledge compared to 12 months ago.
Across the states, people in New South Wales are most likely to be putting additional energy into increasing their financial knowledge compared to 12 months ago.
Aware of the challenges that lie ahead, Australians are open to improving their financial knowledge to strengthen their financial position. Young Australians are more driven than their older counterparts to attain financial literacy and are looking for ways to improve their financial knowledge, with younger females the most likely to improve their financial knowledge (30% Gen Y females compared to 21% Gen Y males).
Across the generations, Gen Z is the least prepared to navigate any unexpected financial challenges, with 14% feeling not at all prepared and 24% feeling only slightly prepared. However this generation is most open to resorting to having a budget (56%), cutting back spending on non-essential items (50%), having a separate savings account (48%) and shopping around for the best deals (43%).
Gen Y is similarly resorting to having a budget (49%), cutting back on non-essential items (47%), shopping around for the best deals (43%) and having a separate savings account (43%).
While these are all appropriate and helpful financial habits to develop, they may not necessarily be the most effective strategies for cultivating long-term wealth.
The top measures Australians say would help them feel more confident in navigating financial challenges are having an emergency fund (37%), developing good financial habits (28%) and flexible payment options (25%).
Evidently, there are opportunities for Australians across the board, but especially younger Australians, to improve their financial literacy so they’re able to achieve their dreams of financial wellbeing.
Financial literacy shapes the relationship people have with money, so in order to cultivate a positive relationship, it’s important Australians receive helpful financial education throughout their life, but crucially in their youth. Yet 31% report receiving no financial education in their childhood, and 57% receive a small or fair amount. Just 13% received a lot, or an extensive amount of financial education in childhood.
Concerningly, it’s younger females who report receiving no financial education in childhood (20% Gen Z females, 28% Gen Y females compared to 11% Gen Z males, 14% Gen Y males). As they entered early adulthood, 40% of Australians indicate receiving no financial help, and 49% report receiving limited or some financial help.
Certainly, many Australians would have appreciated more financial education in their younger years to enable them to make more informed financial decisions.
| Gen Z | Gen Y | Gen X | Boomers | Builders |
|---|---|---|---|---|---|
| Build an additional income stream | 27% | 24% | 22% | 16% | 7% |
Work multiple jobs | 22% | 14% | 11% | 4% | 1% |
Work more hours | 34% | 20% | 19% | 7% | 1% |
At Shadforth, we are passionate about helping every Australian feel more confident about their financial situation and supporting financial education at any age.
We have the tools and expertise to help you understand your current situation and better manage your money at any age. If you have friends or family who could benefit from the clarity that expert financial advice provides, please talk to your adviser or email us at contactus@sfg.com.au.
View the Financial Freedom Report.
