Australians facing poor physical or mental health are more likely to experience low financial wellbeing, according to the latest ANZ Financial Wellbeing survey.
The survey revealed that 68% of individuals who were struggling financially described their mental health as fair or poor, compared to 28% of Australians overall. Similarly, 57% of those struggling reported having fair or poor physical health, in contrast to 27% of Australians overall.
The report identified health, unemployment, earning potential, and life stage as the most significant socio-economic factors affecting financial wellbeing. It noted that poor health has a larger impact on financial wellbeing than saving and spending behaviors.
ANZ CEO Shayne Elliott commented on the findings: “This research provides us with valuable insights into how socio-economic context and life events can influence financial confidence, attitudes, behaviours and financial wellbeing.” He added that ANZ has a unique opportunity to support people in developing their money skills and confidence through everyday banking and customer interactions. Elliott expressed hope that the insights from this survey would assist the broader industry, government, and community sector in better supporting people's financial wellbeing.
Professor Elaine Kempson from the University of Bristol stated: “Financial wellbeing is a combination of two factors - it's how much money you've got, and it's what you do with the money you have got.” She emphasized that financial behaviors are more important than knowledge alone: “What you do with your money can make a situation better or worse.”
Key findings from the survey include:
- 80% of Australians are confident in managing their day-to-day finances.
- 67% felt confident planning for their financial future.
- 37% have more than six months of saved income; however, 14% reported having no savings.
- The average financial wellbeing score for all Australians is 64 out of 100.
- Men generally had higher scores than women, averaging at 66 compared to women's average score of 62.
ANZ has been exploring the financial literacy, capability, attitudes, and behaviors of Australian adults for nearly two decades. The latest survey involved over 3,500 Australian adults conducted in mid-2021.
For further details on the report: https://www.anz.com.au/about-us/esg-priorities/financial-wellbeing/